The athlete venture capitalist – the rise of athlete investors in sport
Leaders recently published a report compiling a list of the major funding rounds in the sports industry from June 2017 to November 2018.1 The analysis showed a total amount raised of over $1 billion with investments from leading venture capital funds such as Softbank and established corporate entities including BSkyB and ESPN. However, the report also illustrated the prominence of individual athletes in the sports investment ecosystem with a concentration on funding early stage companies operating in the sports technology sector.
This article analyses the drivers behind the rise of the “athlete investor”2, describes the different models of equity investment and offers guidance on the key legal considerations when executing a fundraising. It also draws out the benefits and risks for the athlete of investing in growth phase businesses and for the company in receiving investment from a high-profile player. It is accepted wisdom that the influence of athletes now extends beyond the stadia of professional sport and their prominence as professional investors is another part of this evolution.
To continue reading or watching login or register here
Already a member? Sign in
Get access to all of the expert analysis and commentary at LawInSport including articles, webinars, conference videos and podcast transcripts. Find out more here.
- Tags: Athlete Welfare | Commercial | Corporate | Football | United Kingdom (UK)
Related Articles
- The employment status and rights of funded athletes in the UK
- How to use intellectual property rights to protect a new sports format
- The NHL concussion litigation – a second-class settlement?
- The evolution of digital media strategies in Major League sports and the legal issues they raise
- Key UK tax changes for not-for-profit sports clubs in 2018/19
Written by
Mike Herbert
Associate, Northridge
T: +44 (0) 20 3957 8812
Mike has a broad corporate and commercial practice which includes advising on M&A transactions, fundraisings, joint ventures and corporate reorganisations. He also regularly advises on governance issues in sport and was involved in the development of “A Code for Sports Governance”. Mike joined Northridge after over four years at Slaughter and May.
Recent work highlights include advising on the increase in Farhad Moshiri’s stake in Everton FC; the sale of digital design agency, W12 Studios, to Tata Consultancy Services; and the transfer of Cesc Fabregas to AS Monaco.
Mike is an active member of Northridge’s Sports Tech programme, acting for high growth technology businesses and investors in the sports and entertainment industry. He has also completed the BASL/ De Montfort Law School Diploma in Sports Law and Practice.
Jon Walters
Partner, Northridge
Jon provides commercial and corporate advice to clients. He is recognised by the directories as a “real go-to adviser” and a “commercial and regulatory expert”, with particular expertise on governance, corporate advice and commercial rights.
Global Summit 2024