Technology, data and infrastructure the new frontier for sport investment

Investing in sports is expanding beyond just purchasing teams, as technology, data and infrastructure become key areas of focus, according to new analysis. This shift could propel the global sports market to nearly 45 percent growth by the end of this decade, boosting its value from $417 billion to over $600 billion by 2030, according to Investec, a FTSE 100 bank.

Oliver Cardigan, an analyst at Investec, asserts that the UK has the potential to become a global leader in managing this transformation, given the UK's position as a key hub for sports streaming, attendance, and increased participation in sports-related activities. The research, which highlights sport-adjacent investment returns of 10-20 percent, is set to be discussed at an upcoming Investec UK Sports Summit, where an estimated £1 trillion in capital will be brought together.

Cardigan explains that "technology is becoming the operating layer that determines whether sporting attention can be converted into revenue," and that "fandom is one of the most under-monetized assets in sport." The report points out that Liverpool FC, valued at around £5 billion following a significant investment led by Amazon founder Jeff Bezos, exemplifies this trend.

Furthermore, Sir James Dyson and Black Knight, owners of AFC Bournemouth, have also invested in Bath Rugby and Exeter Chiefs, respectively, as rugby union seeks additional avenues for growth.

Cardigan emphasizes that the most appealing fan propositions combine emotional loyalty with clear pathways for spending. This can be achieved through various means such as exclusive content, premium access, athlete-led storytelling, and personalized offers, which together can increase wallet share among fans.