36.5 C
Thursday, July 11, 2024

Underdogs emerge as sports and entertainment favorites backed by NewSpring


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].


Source link

Related Articles

Dubai-Based Pakistani Designer Shines at Ambani Wedding, Glamour Unleashed

Dubai-based Pakistani designer's triumph at the Ambani wedding represents a significant milestone in their career and a proud moment for the South Asian fashion...

Virat Kohli Phenomenon: Times Square Celebrates Indian Cricket Icon with Life-Size Statue and Grand Tribute

Virat Kohli Phenomenon: Times Square Unveils Life-Size Statue Celebrating Indian Cricket IconIn a spectacular display of admiration and reverence for one of cricket's greatest...

Paris Fashion Week 2024 Highlights: Loewe’s Mythic Collection, Dries Van Noten’s Farewell Show, and More

Paris Fashion Week 2024: Key Moments: Loewe's Collection and Dries Van Noten's Farewell Paris Fashion Week 2024 has dazzled the fashion world with a spectacular...

Media Tycoon Rupert Murdoch Marries for Fifth Time: Stunning Photos

Media Tycoon Rupert Murdoch, the esteemed media tycoon whose name resonates across the globe, has once again made headlines with news of his fifth...

Gautam Gambhir Aspires to Coach Indian Cricket Team, Calls It ‘Biggest Honour’

Gautam Gambhir Aspires to Coach Indian Cricket Team, Calls It 'Biggest Honour' Former Indian cricketer and celebrated opener Gautam Gambhir has expressed his aspiration to...

Latest Articles