Avenue Capital’s $1.5B Sports Fund, Backed by Star Athletes, Targets High-Growth Franchises

Avenue Capital Group, in collaboration with GAM, has launched the $1.5 billion Avenue Sports Opportunities Fund in Australia and New Zealand.

This fund, which targets premium sports franchises, emerging leagues, and underfunded areas, is supported by an Athlete Team including NBA star Stephen Curry, footballer Harry Kane, and WNBA player Candace Parker. These athletes bring unique industry insights, helping Avenue identify strategic investments across the evolving sports landscape.

According to Marc Lasry, Avenue’s co-founder and former Milwaukee Bucks owner, “The sports industry provides stable growth and long-term value.” Lasry’s track record—transforming the Bucks into NBA champions and selling his stake for 6.4 times his initial investment—adds credibility and connections that benefit the fund’s sourcing and investment strategies.

The appeal of sports franchises is supported by strong financial performance. Between 2002 and 2022, the average compound annual growth rate (CAGR) for the “Big 4” U.S. leagues (NBA, NFL, MLB, and NHL) was 11.2%, outpacing the S&P 500’s 7.7%. The NBA led with a 13.6% CAGR, and the average franchise valuation now sits at $1.28 billion, showcasing why sports have become a coveted asset class. Additionally, sports assets have fewer down years and lower volatility compared to traditional investments, making them attractive targets.

With rising fan engagement, demand for live experiences, and an expanding viewership across digital platforms, Avenue Capital’s fund is positioned to support both established franchises and growth sectors. As Lasry noted, “Our goal is not just to invest in established leagues but also to support areas that have traditionally been underfunded.” This focus includes growth opportunities in women’s leagues and youth sports, areas in which the Athlete Team’s insights will be especially valuable.

Interested to know more and want to get in touch with the team at GAM. Find all their contact details here

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