The Sports Business Is Growing Faster, Attracting More Money, than Anyone Imagined

Lowa basketball star Caitlin Clark drove viewership of the women’s national championship game to a record 18.9 million - AFP
Lowa basketball star Caitlin Clark drove viewership of the women’s national championship game to a record 18.9 million - AFP
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The Sports Business Is Growing Faster, Attracting More Money, than Anyone Imagined

Lowa basketball star Caitlin Clark drove viewership of the women’s national championship game to a record 18.9 million - AFP
Lowa basketball star Caitlin Clark drove viewership of the women’s national championship game to a record 18.9 million - AFP

Every facet of our society—business, politics, entertainment—has its own calendar, marked by matters such as earnings seasons, elections, and the Oscars, in the examples above. The world of sports has a circadian rhythm, too, of course.

We’re now at a familiar transition point, moving from winter sports and a spectacular March Madness, which ended this past Monday, to that harbinger of spring, the Masters, which started on Thursday.
This spring, though, shifts in the sports world are of a more seismic nature. Digitization; gambling; the NIL (name, image, likeness) market for college athletes; globalization; and the rise of women’s sports are reshaping sports at a breakneck pace—much of which was front and center at the global sports leader conference on Kiawah Island, S.C., earlier this month.

“All of these changes are generating even more interest in sports,” says George Pyne, CEO of investment firm Bruin Capital, which produces the event with Jay Penske’s Sportico. Sports, adds Pyne, is an “undervalued category. You’ll see more sophisticated capital—sovereign-wealth funds, private equity—come in as things evolve.”
The numbers in this sprawling trillion-dollar business, which includes sports events, broadcast rights, gaming, merchandise, and apparel, are already eye-popping. The world’s 50 most valuable sports teams are now worth a combined $256 billion, up more than 15% from a year ago, according to Forbes—highlighted by Apollo Global Management co-founder Josh Harris buying the Washington Commanders for $6 billion, the most ever paid for a sports team. The National Football League, which dominates the list with 30 teams, has seen the average value of its top franchises double over the past five years to $5.1 billion, outpacing the S&P 500 index, Barron's reported.
Athletes are benefiting, too, with the 50 highest-paid ones of all time cumulatively reaping $35.5 billion, according to Sportico. The superstars come from 17 countries, though 32 are Americans, led by Michael Jordan and his career haul of $3.75 billion, much of that from his Nike shoe deal.
The Kiawah confab, now in its third year, brings together a who’s who of the sports world, including the commissioners of the Big Four sports leagues plus heads of other leagues and college conferences and nearly 50 teams from myriad sports—as well as boldface team owners (Steve Cohen, Greg Maffei, Ted Leonsis, Joe Tsai) and top TV sports executives.
The program isn’t about sports, however. Attendees are there to listen to panels and fireside chats by former US presidents (George W. Bush and Barack Obama); presidential candidates; central bankers; generals; Fortune 100 CEOs (Hans Vestberg, Brian Moynihan); high-profile market players (Mohamed El-Erian, Cathie Wood); scientists; and doctors.
The real action comes after the sessions over aged bourbon, or at lunch over she-crab soup, or on the resort’s famous packed-sand beach, or on its five golf courses. Here, like any great “elephant bumping” ground, alliances are struck, investments made, and megadeals, such as the sale of an NFL team, go down.



Real Madrid Makes Ancelotti’s Departure Official, Calling the Coach a ‘True Legend’ 

Real Madrid's coach Carlo Ancelotti holds the trophy after defeating Atletico Madrid in their Champions League final soccer match at the Luz Stadium in Lisbon, May 24, 2014. (Reuters)
Real Madrid's coach Carlo Ancelotti holds the trophy after defeating Atletico Madrid in their Champions League final soccer match at the Luz Stadium in Lisbon, May 24, 2014. (Reuters)
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Real Madrid Makes Ancelotti’s Departure Official, Calling the Coach a ‘True Legend’ 

Real Madrid's coach Carlo Ancelotti holds the trophy after defeating Atletico Madrid in their Champions League final soccer match at the Luz Stadium in Lisbon, May 24, 2014. (Reuters)
Real Madrid's coach Carlo Ancelotti holds the trophy after defeating Atletico Madrid in their Champions League final soccer match at the Luz Stadium in Lisbon, May 24, 2014. (Reuters)

Real Madrid made it official on Friday that Carlo Ancelotti is leaving the club after the end of the Spanish league this weekend. 

Ancelotti had already been announced as the next Brazil coach, but the Spanish club had yet to make any announcement about his departure. Ancelotti had another year left on his contract. 

“Real Madrid and Carlo Ancelotti have reached an agreement to bring an end to his time as Real Madrid coach,” the club said in a statement. “Our club wishes to express its gratitude and appreciation for a man who is a true legend of both Real Madrid and world football.” 

Madrid will pay tribute to Ancelotti on Saturday during the team's final match of the league season against Real Sociedad in the Spanish league at the Santiago Bernabeu Stadium. Also bidding farewell on Saturday will be veteran midfielder Luka Modric. 

“Carlo Ancelotti will forever be part of the great madridista family,” Madrid club president Florentino Pérez said. “We feel incredibly honored to have had the chance to enjoy a coach who has helped us achieve so much success, but who has also embodied our club’s values in such exemplary fashion.” 

Madrid had not released any reaction or statement about its coach since Brazil’s announcement. 

The official announcement of Ancelotti's departure opens the way for Madrid to announce its next coach, who is widely expected to be Xabi Alonso. The former Madrid player recently confirmed he is leaving Bayer Leverkusen. 

Ancelotti is leaving after four mostly successful years in his second stint with Madrid, which won both the Champions League and the Spanish league last season. 

Ancelotti also coached the club from 2013-2015. In total, he was in charge of Madrid in more than 350 matches and helped it win three Champions Leagues, three Club World Cups, two Spanish leagues, two Copa del Reys, three UEFA Super Cups and two Spanish Super Cups. 

Madrid began the season by winning the UEFA Super Cup title, but has mostly struggled since then. Many Madrid fans blamed Ancelotti for its relatively poor season, saying he lost control over the squad and wasn’t able to get the team ready for the clasicos against Barcelona, which won the league. Madrid lost all four matches against the Catalan club this season.