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The Growing Appeal of Sports as an Asset Class for Family Offices

More family offices are investing in sports, driven by the increasing democratization of professional sports and the myriad ways available to participate financially. Soccer, in particular, is gaining traction in the U.S., and the allure of being involved with a sports franchise offers a sense of tangibility that traditional investments often lack. For many family offices, owning or investing in a sports team offers more than just a business opportunity. The experience is further enriched by the ability to attend games or watch them live, adding a unique and personal dimension to the investment.

Historically, investing in professional sports has been quite challenging, but today there are emerging leagues, such as the United Soccer League (USL), that have opened doors for investors. However, these ventures require substantial due diligence, as the key for family offices is determining where sustainable investments lie within this growing sector.

An important strategy in sports as an asset class is creating long-term sustainability through diversified revenue streams. Family offices are increasingly exploring avenues like sponsorships, merchandise, sports betting, player trading (an $8 billion market), and even real estate development. The possibility of real estate development ranks among one of the biggest deciding factors when considering an investment since it has the potential to significantly improve overall returns.

Emerging leagues like the USL are becoming key platforms for player development, offering young talent the chance to shine in front of larger audiences. Family offices see potential in these leagues, where they can sign young players, give them time to develop, and eventually sell them to bigger and better clubs – a strategy that is becoming a substantial revenue driver.

Ultimately, the combination of personal engagement, financial opportunity, and diversified revenue streams makes sports an attractive asset class for family offices. By investing in teams, emerging leagues, and real estate, they can build sustainable businesses while connecting personally with their assets.

About the Author

Brett M. Johnson is the founder and CEO of Benevolent Capital and the founder and partner of Fortuitous Partners. As a co-founder and chairman of Rhode Island FC, he is also passionate about sports as an asset class. Brett holds a bachelor’s degree from Brown University and an MBA from Pepperdine University’s Presidential/Key Executive program, with additional leadership training from Harvard Business School’s President’s Leadership Program in 2014. He is also an active member of the Young Presidents Organization.

*Disclaimer: The information provided is for informational purposes only and should not be construed as financial or investment advice. Always consult with a qualified financial advisor or wealth manager before making any investment decisions.