Recommendations on EtA of lower division sports club

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June 20, 2022

by a searcher from The University of Michigan - Stephen M. Ross School of Business in Albuquerque, NM, USA

Has anyone looked into EtA of a lower division sports club? Additionally, any interest in starting PE fund with a focus on lower division international, or US based sports teams? I am starting my EMBA through Michigan Ross and plan to pursue this research over 2 years to establish either EtA or PE fund by April 2024.

Please reach out with experience or recommendations.

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Reply by a searcher
from IE Business School in Cambridge, UK
Hi Sean. An alum from my school bought a third division football (soccer) club in Spain. The club had 200 staff all in all, and ended up getting relegated in 2019 due to unpaid debts amounting to €200k.

One of my professors actually advised the Glazers on their purchase of Manchester United. She said they used real option valuations to value player contracts, potential rights, etc. I think it requires a very specific skillset to invest successfully in sports teams due to the unique economics.

A good grasp of real options, rights, contract law, royalties, etc., is definitely necessary.
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Reply by a searcher
from University of Colorado at Boulder in Camas, WA, USA
Recommendation: Major League Rugby. The MLR is growing and the Rugby World Cup is coming to the USA in###-###-#### This is a growing sport, in fact, it's the fastest growing sport for youth in the US. Good luck!
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