Family offices keep spending on sports assets as May deals hold steady
CNBC reported 51 direct family office investments in May, with sports deals spanning pickleball, NFL ownership, media and performance tech.
By Hana Yoshida · Markets Reporter
3 min read
Family offices continued to put money into sports in May, even as artificial intelligence startups drew much of the wider deal-making attention. CNBC reported that investment firms tied to ultra-wealthy families backed assets ranging from professional pickleball to NFL ownership and athlete performance technology.
Family offices made 51 direct company investments in May, matching April’s total, according to Fintrx data cited by CNBC. Several of the month’s notable transactions were tied to sports teams, leagues, media rights or sports technology.
Pickleball and the Raiders draw capital
At the start of May, Dundon Capital Partners, the family office of billionaire Tom Dundon, joined Apollo’s new sports fund in a $225 million investment in Pickleball Inc., CNBC reported. Pickleball Inc. is the parent of Major League Pickleball and the PPA Tour.
Dundon already has sports holdings beyond pickleball, according to CNBC. He owns the NHL’s Carolina Hurricanes and the NBA’s Portland Trail Blazers.
In football, Michael Dell took part in an investor group led by Silver Lake’s Egon Durban that bought a 25% stake in the Las Vegas Raiders, CNBC reported. Dell, founder of Dell Technologies, also holds minority investments in the NBA’s San Antonio Spurs and the Austin Gamblers, a professional bull riding team, according to CNBC.
Fintrx’s May tracker also listed the Werthein Group, tied to the Werthein family’s diversified business interests, as investing in TyC Sports, an Argentine sports channel. CNBC identified that deal as one of the larger family office sports investments of the month.
Sports tech also gets attention
David Adelman’s Darco Capital was another family office active in sports during May, according to CNBC. Adelman built wealth in student housing and private equity and is a part-owner of the Philadelphia 76ers, Crystal Palace and the New Jersey Devils, as well as an investor in Fanatics, CNBC reported.
Darco Capital co-led a $12 million Series A funding round for PlayerData, a U.K. startup that makes GPS-enabled vests and smart soccer balls used to measure player performance, according to CNBC. David Blitzer’s family office, Bolt Ventures, and venture firm Pentland Ventures also co-led the round.
Adelman told CNBC that some teams in his portfolio already use PlayerData products. Crystal Palace uses the company’s vests and smart soccer balls in training for academy players, according to CNBC.
Adelman said the company appealed to him partly because its technology could be used by athletes beyond the professional level, including in youth sports. He told CNBC the product stood out because it made a complex task more practical and easier to use.
Survey points to broader interest
CNBC also cited a Goldman Sachs survey released last fall showing that 25% of family offices had already invested in sports or related assets, including ticketing and arenas. The same survey found another quarter of family offices were interested in making such investments.
Some family offices are drawn by personal interest in sports, CNBC reported. The sector also appeals to investors who see it as a potential hedge against inflation, according to CNBC.
This story draws on original reporting from CNBC.