• Large market clubs
• Stadium infrastructure
• Media, sponsorship and player rights
IM1872 : Benefiting from the explosive growth of the sports sector
The growth of the sports sector has been more than triple that of the overall economy for forty years in the United States, and for twenty years in Europe. Annualized growth rates of both revenues (television and sponsorship rights, gate revenues) and asset values (club valuations, media rights, tournaments, player values) in Europe have been 12 and 14% since 1990. According to Deloitte, the overall sports industry generates turnover surpassing Euro 10 billion in Europe alone.
Yet with all this value creation, institutional investors still have limited access and understanding to the sports industry. IM1872 provides the know how to differentiate between high and low quality assets, through sector experience and due diligence capabilities, and the ability to structure investments to maximize securities while maintaining upside exposure.
By combining sports industry experience with financial know – how, IM1872 seeks to exploit the high risk adjusted returns that can be derived from a growth sector with high financing needs, which are backed by secure revenue streams and assets, but which is underfunded.
Superior returns are derived both from a classic demand/offer mismatch, and from the ability to derive strategies that are hedged or securitized.
IM1872 manages debt, hybrid, and equity strategies, structuring investments to suit the asset profile and investor needs.
Key areas of IM1872 investment focus are :
Growth
The sports sector has been growing at a rate that is a multiple of the economy at large for decades, leading to scale and profitability. IM1872 focuses on large catchment areas, which have the fastest growth, for “revenue competitive advantage.”
Networks
The sports sector is highly network dependent, both on the sporting and commercial sides. IM1872 obtains the best opportunities, and adds value through the best the market has to offer, by being able to leverage its networks across countries and functional areas.
Best Practice
Networks and benchmarking, and our diversity of highly performing clients, allow IM1872 to build knowledge to identify and implement best practice, whether coming from within or outside the sports sector. The highly attractive sports platform attracts input from best talents from all functional areas.
