The New Power Players: Innovation and the Business of Sport

Here's a detailed summary of the YouTube video transcript:

Key Concepts

• Modern Sports Ownership: Blending entertainment, technology, and activism.
• Fan Engagement: Direct, grassroots approach, especially on social media, and earning attention minute-by-minute.
• Emerging Sports: Focus on building fan bases directly where fans are, particularly on digital platforms.
• Community-Based Clubs: Engaging fans in their element, online and offline, and in their language and culture.
• Women's Sports Valuation: Historically undervalued, now experiencing exponential growth and rising valuations.
• "Rally the World" Campaign: WTA's brand identity focused on striving for greatness.
• Late Mover Advantage: Saudi Arabia's opportunity to build modern sports infrastructure and fan engagement.
• Athos: A women's professional track and field competition aiming to create a sustainable league model.
• Social Media Revenue: Leveraging digital platforms for brand partnerships and reach, especially for emerging leagues.
• Fandom Building: Initiatives to inspire young girls and create pathways for participation in sports.
• Cultural Differences in Fan Connection: Adapting fan experience to local preferences and engagement styles.

Modern Sports Ownership and Fan Engagement

The discussion begins by exploring the evolving mindset of sports owners in 2025, highlighting a shift from traditional, detached ownership to a more integrated approach involving entertainment, technology, and activism.

• Alexis's Approach (Angel City FC): For Angel City, a women's football club in Los Angeles, the "north star" since 2020 has been to "tell the story of our players every minute they are not on the pitch and earn the right for our fans for our community to then watch them when they're playing." This emphasizes the need to build a fan base directly and "from the grassroots up," primarily through social media, as fans consume sports on small screens and attention must be earned continuously.
• Ben's Approach (Cadiz CF, Saudi Club): Ben contrasts this with historical ownership models where owners were "separated from the fans" and clubs were "entitled." His experience with Cadiz in Spanish La Liga involved building a "community-based, inclusive" club that met fans "in their element, be it online and digital spaces with TikTok and Twitter and Instagram and Snap, but also in their language, in their culture." He has developed social media apps in underpenetrated markets like Nigeria and China. In Saudi Arabia, he actively engages with fans, even making matches accessible via an app when TV coverage is an issue. This "full-service ownership" aims to make fans feel valued and heard, fostering a new generation of engaged supporters.

WTA's Growth and Brand Identity

Porsche discusses the significant growth of the WTA, with a 25% jump in commercial revenue and a global audience of 1.1 billion fans annually.

• Key Risk and Brand Revitalization: A major risk taken was a comprehensive review and relaunch of the WTA's identity and brand. This involved more than just visual changes (colors, logo) but a redefinition of "who we are as a sports property and what we want to message and communicate to our fans globally."
• "Rally the World" Campaign: The new brand centers around the "Rally the World" campaign, positioning the tennis court as a platform for competition and a stage for achieving greatness in any aspect of life. This message has been embraced by players and fans globally, empowering them to embrace their own strengths and contributing to the broader empowerment of women, which is core to the WTA's DNA. The WTA hosts tournaments in 50 countries across six continents.

The Rise of Women's Sports and Closing the Valuation Gap

A significant portion of the discussion focuses on the undervalued status and subsequent rapid growth of women's sports.

• Tennis as a Benchmark: Ben notes that tennis is globally one of the few sports where women receive similar celebrity and credence to men.
• Alexis's Perspective: Alexis views women's sports as "the most undervalued asset in the world" and believes we are "a ways from overheated" in terms of valuation. She points to the rapid rise in valuations and team revenues as evidence of historically suppressed investments.
  • Angel City FC Example: Alexis paid $1 million for an expansion fee in January 2020, while the same league (NWSL) recently charged $150 million to a group in Denver, representing a 150x increase in expansion fees in 4-5 years.
  • Valuation Growth: Valuations are now in the hundreds of millions, with projections of billion-dollar women's teams within five years. Alexis hopes Chelsea Women, where she is a minority owner, will be among the first.
  • WNBA Example: The WNBA, with teams like the Liberty, also has a strong chance of reaching this milestone.
  • Capitalist Society and Revenue: Alexis emphasizes that the success of women's sports is driven by "great entertainment" and "great content," not just sentiment. She cites the US Open women's final drawing more American viewers than the men's final as evidence.
• Porsche's Perspective: Porsche agrees that women's sports are "nowhere near overheating" but acknowledges "exponential" growth.
  • WNBA Valuation Growth: The Las Vegas Aces, bought for $2 million in 2021, are now valued at $310 million. The Liberty are valued at $400 million, and the new San Francisco team, the Valkyries, at $500 million.
  • Market Share: While sports revenue is projected at $80 billion in 2025, women's sports account for $2.35 billion (approximately 3%). This indicates significant room for growth and the need for continued investment and innovative partnerships.

Saudi Arabia's Sports Growth and "Late Mover Advantage"

Ben discusses the rapid growth of sports in Saudi Arabia, contrasting it with a perceived "declining European market."

• "Late Mover Advantage": Saudi Arabia benefits from this by not having legacy infrastructure issues and by addressing an underpenetrated fan base.
• Lethargic European Leagues: Ben criticizes European leagues for becoming "lethargic," with stagnant revenues in La Liga and issues like the French league lacking a TV contract. Italy is described as an "afterthought," with England being the most "American sport managed league."
• Saudi Opportunity: Saudi Arabia has a "huge opportunity" due to its commitment and capital, combined with a passionate fan base.
  • Fan Base Demographics: 75% of Saudis are football fans, described as having the "highest IQ of any football fans" encountered. They are high spenders, spend significant time online, and are "voracious users of social media."
  • Confluence of Factors: This creates a perfect "confluence of demand, scarcity of supply and timing," especially with the 2034 World Cup approaching.
• League Development: The goal is to distribute salaries more broadly, create more parity, and increase global interest and TV numbers to become a top-five league. Ben anticipates more head-to-head wins against top European clubs, citing Manchester City's recent match against a Saudi club.

Athos: Reimagining Track and Field

Alexis details the creation of Athos, a women's-only professional track and field competition.

• Motivation: Alexis's regret was not buying and rebuilding the NWSL (Women's Professional League America) like a tech company. This led to the idea of reimagining a league from first principles using technology for a sport that gains immense popularity every four years (Olympics) and then fades.
• Athos Launch and Impact:
  • Record Prize Money: Athos launched with record-breaking prize money, doubling the top prize to $60,000, making it the most important event outside the Olympics "overnight."
  • Broadcast Reach: The broadcast attracted 4.5 million viewers.
  • Innovative Fan Engagement: The long jump was brought to Times Square for qualifiers, engaging fans in a high-traffic urban environment.
• Future League Model: The momentum is being used to spin up a proper league next year in three major global capitals with a team-based model, akin to Formula 1 for track and field. This would allow for team rivalries (e.g., Nike vs. Adidas) and showcase technology for athletes.
• Women-First Approach: While acknowledging the potential to add men's events (like mixed relays), Athos is starting as a "women's first league." Alexis notes that women in track and field are "far more valuable from an attention standpoint, more followers online, and from a marketing standpoint."

Revenue Opportunities in Social Media and Digital Platforms

The discussion addresses how social media and small-screen platforms are creating revenue opportunities, particularly for emerging leagues.

• Upstart League Strategy: Alexis explains that for an upstart league like Athos, securing a major media deal is difficult initially. The strategy is to focus on brand partnerships, promising wide reach.
  • Multi-Platform Distribution: Athos was made available on YouTube, Peacock, X, ESPN+, and ION, along with international deals.
  • Brand Revenue Focus: The goal is to achieve reach and then renegotiate media deals, likely around the LA 2028 Olympics, focusing on revenue from brands rather than solely media.
• Porsche's Perspective on Social Media: Porsche, with a background in broadcasting, highlights the complementary roles of linear television and digital platforms.
  • Linear TV: Provides scale and regional deals.
  • Social/Digital Platforms: Offer a "different level of engagement" that is valuable to players (especially in individual sports like tennis) and partners. This engagement attracts younger, more inclusive, and accessible audiences.

Building Fandom Among Girls and the Next Generation

The conversation turns to initiatives for building fandom among young girls and ensuring the future of sports leadership, brands, and retail.

• WTA Initiatives:
  • Storytelling and Content: Leveraging social media to tell stories and create content that inspires young girls.
  • Global Community Engagement: Conducting clinics and community development programs in the 50 countries where tournaments are held, exposing girls to healthy lifestyles and providing enhanced training opportunities.
  • Inclusivity: Reaching communities with higher barriers to sports participation through classroom engagement and partnerships. Judy Murray and Morgan Stanley are mentioned as partners in these efforts.
• Angel City FC and Athos Initiatives:
  • Community Investment: 10% of Angel City's brand revenue is donated to the community.
  • Value Alignment with Brands: Brands partner with these initiatives due to shared values.
  • Addressing Barriers: An example is the realization that lack of access to sports bras is a significant barrier for young girls, leading to partnerships with Nike for donations.
  • Exposure to Professional Athletes: Athos creates fan zones where young children can see athletes playing their sport at a high professional level, inspiring them to "see it, believe it." This is crucial for athletics, where professional pathways are limited.
  • Brand Amplification: Brands partner to amplify dollars and impact.

Cultural Differences in Fan Connection

Ben concludes by discussing his learnings about cultural differences in how fans connect with sports and how this shapes his investment thesis.

• European Fans: Described as more "jaded" but personally invested and attending stadia.
• Saudi Fans: Characterized as more "optimistic," "glass half full," and "much more engaged online."
• Adapting the Experience: The strategy is to "meet them in their world." In Saudi Arabia, where stadium attendance history is limited outside of a few big clubs, the focus is on adapting the experience.
• Innovative Stadium Design: Ben mentions observing the Kings League, which integrates screens for fan projections and social media interaction, allowing their "noise" to be heard in the stadium. This approach aims to make fans feel present both online and in person.

Conclusion

The discussion highlights a transformative era in sports ownership and fan engagement, driven by technology, a focus on community, and a growing recognition of the immense, previously untapped potential of women's sports. Emerging markets like Saudi Arabia are leveraging "late mover advantage" to build modern sports ecosystems, while innovative ventures like Athos are creating new models for established sports. The future of sports revenue is increasingly tied to direct fan engagement on digital platforms and strategic brand partnerships, with a strong emphasis on inclusivity and inspiring the next generation of athletes and fans.