Arctos Stops Financing Involvement with Elevate Sports Ventures Business
Arctos Sports Partners Invest $700 Million in Elevate Sports Ventures
In a significant move that reflects the growing trend in sports business, Arctos Sports Partners has invested approximately $700 million in Elevate Sports Ventures. This investment has elevated Elevate's valuation, positioning the company as a major player in sports marketing and athlete representation.
The investment strengthens Elevate's ties to high-growth sports properties, including the Harris Blitzer Sports & Entertainment portfolio, which encompasses multiple major league teams. This move allows Elevate to capitalise on the rising valuations and commercial growth of sports franchises, particularly in women's sports leagues like the WNBA.
With this investment, Elevate will be able to deepen its sponsorship and media relationships, exploiting the expanding market potential created by increasing media rights revenues and sponsor activation in sports management and marketing. The investment aligns with broader Wall Street trends reshaping sports business models, driven by rapidly growing sports media rights and sponsorship opportunities, a focus on equity ownership in sports franchises, and the rising commercial prominence of leagues such as the WNBA.
Arctos Sports Partners, led by private equity veteran Ian Charles and David "Doc" O'Connor, the former CEO of Madison Square Garden, has raised a total of $5 billion, including $3.9 billion in its first fund and $1.1 billion in a second fund. The investment in Elevate Sports Ventures is a strategic move, given Arctos' involvement in multiple sports teams and leagues, and Elevate's rapidly growing portfolio of sports teams and related businesses.
Elevate Sports Ventures provides expertise in hospitality sales, naming-rights deals, brand consulting, business analytics, and sponsorship sales. The company does business with some of the biggest sports and entertainment properties globally. With over 170 clients, including the NCAA, NHL, U.S. Open, College Football Playoff, and numerous pro sports franchises worldwide, Elevate is well-positioned to leverage Arctos' investment to expand its services and client reach in a changing sports business landscape.
While the exact amount of Arctos' investment and the deal valuation of Elevate Sports Ventures are unclear, the investment marks a significant milestone for both companies. The investment by Arctos Sports Partners in Elevate Sports Ventures is expected to further bolster the company's influence and potential in the sports marketing and athlete representation industry.
It is worth noting that this investment by Arctos Sports Partners is not directly related to the recent Pro Volleyball merger, which values the combined leagues at $325M. However, the investment does highlight Arctos' commitment to investing in the sports industry, having already invested in more than a dozen sports franchises across the NHL, NBA, MLB, MLS, and European soccer.
Some of the sports franchises that Arctos Sports Partners has invested in include the Golden State Warriors, Boston Red Sox, and Los Angeles Dodgers. Arctos Sports Partners' investment portfolio also includes the three most valuable franchises in the U.S. according to Sportico's calculations.
The regulatory filing and an email sent to clients were the sources for the amounts raised by Arctos Sports Partners. The investment in Real Salt Lake, an MLS club, was made before HBSE co-founder David Blitzer bought the team earlier this year. Arctos Sports Partners will join current Elevate partners such as Oak View Group, San Francisco 49ers, Live Nation (NYSE: LYV), and Harris Blitzer Sports & Entertainment (HBSE).
This investment by Arctos Sports Partners in Elevate Sports Ventures is a testament to the growing trend of private equity firms investing in the sports industry. As sports media rights and sponsorship opportunities continue to grow, we can expect to see more such investments in the future.
Elevate Sports Ventures can leverage the investment to expand its involvement in sports franchises, particularly in growing markets such as women's sports leagues like the WNBA (investing, sports). This move aligns with Wall Street trends, as private equity firms like Arctos Sports Partners seek equity ownership in sports franchises and capitalize on the rising commercial prominence of leagues (finance, sports).
