21.3 C
Dubai
Tuesday, February 27, 2024
spot_img

Underdogs emerge as sports and entertainment favorites backed by NewSpring

[ad_1]

One firm’s investment thesis is betting on the explosive growth of the name, image and likeness (NIL) market as private equity continues to foray into sports and entertainment. It’s a potential home run, according to the experts we spoke to. The reason is as follows.

New Spring HoldingsLast month, a lower-middle-market private equity firm based outside Philadelphia acquired Loser Venture Capital Teamis a New York-based marketing agency focused on helping grow brands in the sports, health, media and lifestyle sectors. NewSpring’s investment is designed to help Underdog capitalize on a powerful trend: Professional and collegiate athletes increasingly focus on entrepreneurship and content creation.

the transaction is Larger Trends in Private Equity Investment and Ownership in Sportswhich will require a greater return on investment as competition in the field intensifies, says Skip Manner, Partner at NewSpring. The acquisition of Underdog marks its first foray into the sports industry. NewSpring manages $3 billion in assets in the healthcare, technology, manufacturing and business services sectors.

“We’re trying to create strong, focused mid-market competitors that can be more nimble, innovative, and better serve customers,” Maner said of NewSpring’s portfolio growth and diversification strategy when said.

Underdog emphasizes empowering women and creators from minority backgrounds — 66% of the businesses it invests in are led by women. and MannixFounder of Underdog, part of the operations team that launched the project WNBAthe top women’s professional basketball league.

Underdog’s clients include athletes unlimited, Jackie Robinson Foundation, Pokotok Festival, global television,as well as USTA.

“I saw an opportunity for Underdog to be disruptive,” Mannix said. “I think part of that is really looking at diversity from a fresh perspective, working with emerging startups that are actually creating change in sports, particularly in terms of technology and innovation. That’s where we think there’s an opportunity gap Two areas of focus.”

the ambiguity of NCAAThe NIL guidelines are uncharted territory for athletes, and Mannix credits Underdog with providing advice and support for athletes to make informed business decisions in their ventures.

“This is a huge opportunity to be able to provide value to groups that are looking for help with guidance, how to lead, compliance, and every state is different,” Mannix said. “It’s a space we’re very bullish on.”

There are inherent risks in positioning an upstart to compete with established giants in the staffing industry, such as Creative Artists Agency LLC or Wasserman Media Groupbut the upside could be highly profitable for Underdog, says Andrew ApfelbergLos Angeles Law Firm Greenberg Glusk.

“It’s going to take a lot of money,” Apfelberg said. “But from a business strategy standpoint, it’s definitely smart to go into areas that are still highly respected, desirable, interesting and marketable but maybe not getting as much attention.”

With the evolution of audience consumption habits, athletes need to meet fans in the field, and Underdog’s business model fits this demand well. chip sloanlawyer at cross border.

“What [Underdog] “What we’re doing is exactly what a lot of organizations and teams are looking for,” Sloan said. future income.”

Sloan said NewSpring’s investment will help Underdog scale and expand through acquisitions.

Apfelberg said NewSpring and Underdog’s long-term success will depend on their ability to expand their reach, iterate and evolve their business models to become profitable, while fending off competitors eager to capture some market share.

“People want to connect with hot and market-disrupting businesses,”
Apfelberg said. “Not everyone can make $1 million in 30 seconds super bowl Ads, but there are more companies that might have $10,000 to sponsor World Cup athletes. “

arrival manar exist [email protected].

[ad_2]

Source link

Related Articles

Elon Musk Visionary Optimus Video Leaves Audiences Intrigued: Unraveling the Mystery Behind its Power

Elon Musk Visionary Video Leaves Viewers Intrigued Elon Musk has sparked widespread intrigue and speculation across social media platforms with the unveiling of a humanoid...

Pankaj Udhas, Indian Iconic Ghazal Maestro Passes Away at 72 , Tragic Loss

Pankaj Udhas, the renowned ghazal and playback singer, passed away at the age of 72. His family disclosed that he succumbed to a prolonged illness....

Abu Dhabi-Backed RedBird IMI Secures $1.45 Billion Deal for UK’s All3Media

Abu Dhabi-Backed RedBird IMI Secures Powerhouse $1.45 Billion Deal for UK's All3Media RedBird IMI, spearheaded by Jeff Zucker, the former CNN executive, has clinched a...

Neuralink Breakthrough Enables Human Control Over Technology, Musk Reveals

Neuralink Inaugural Human Triumphantly Commands Mouse Through Pure Thought, Declares Elon Musk Neuralink, the groundbreaking venture spearheaded by Elon Musk, achieved a remarkable milestone last...

Rituraj Singh, indian TV Actor Succumbs to Cardiac Arrest, Confirmed by Amit Behl, Tragic Loss

Rituraj Singh, indian TV Actor Succumbs to Cardiac Arrest, Confirms Amit Behl Television industry mourns the loss of esteemed actor Rituraj Singh, who tragically passed...

Latest Articles