Why Investors Are Rushing to Bring Athletes Into Sports Ownership Groups

The surge in athletes acquiring ownership stakes in professional sports teams is not slowing down. Investment bankers report a weekly influx of potential deals involving athletes who wish to bring their experience into team ownership, according to Wale Ogunleye, an 11-year NFL defensive end and current UBS executive. High-profile athletes such as LeBron James, Tom Brady, Patrick Mahomes, and Travis Kelce are among those with investments in various sports properties.

Travis Kelce's recent acquisition of a minority stake in the Cleveland Guardians, coupled with his investment in Alpina Formula 1, exemplifies this trend. Ogunleye, who oversees sports and entertainment at UBS, observes that investors and billionaires are now attracted to the athlete-owned teams for the reputational benefits rather than the capital alone.

Athletes' community involvement with teams can lend a sense of validation to these owners, as fans place more trust in owners who have proven themselves through community engagement. This trend aligns with many athletes' long-term aspirations to be recognized as entrepreneurs, not solely as athletes. Tina Charles, a 2012 WNBA MVP and founder of 78 Brewing Co., shares Ogunleye's viewpoint, emphasizing that team or business ownership provides athletes the opportunity to create their own narrative and make decisions, thereby taking on risks.

Charles asserts that being in these rooms is essential for reshaping perceptions of athletes and gaining a stronger foothold in these spaces.