In current weeks, Legends—a premium experiences firm—introduced strategic investments in each the American Final Disc League (AUDL) and TeamTrak (part of World Biking League). The 2 offers are “the tip of the iceberg, and there shall be an incredible cadence of bulletins [to come],” stated Mike Tomon (co-president and COO, Legends). Legends views rising sports activities as a progress vertical for its core world providers enterprise (suppose: sponsorships, omnichannel merchandise, ticket gross sales, hospitality planning). And tie-ups with the AUDL and TeamTrak are “complete service partnerships” that can assist to drive short-term income. However as Tomon defined, the chance to put money into among the upstart platforms it’s serving to to professionalize and develop is most enjoyable. “We’re investing in a spot we really feel actually good,” he stated, and the place they “know what the result [will be].”
The demand for stay sports activities content material, altering shopper behaviors and the maturation of Gen-Z have spurred the launch of numerous sports activities properties lately. One frequent trait of the profitable ones is that they’ve extraordinarily passionate and engaged house owners. Each AUDL and TeamTrak checked that field.
Legends additionally preferred how the 2 leagues keep a low barrier to fan entry (suppose: most individuals are acquainted with the video games); have a monitor file of participating various viewers segments; are poised for worldwide progress; and look to be viable from a live-event perspective.
JWS’ Take: Legends has constructed a holistic service platform for sports activities properties over the past 13 plus years, working with rights house owners on every thing from planning to gross sales to sponsorship, Tomon siad, “after which when [the fans] are congregating in particular person, how [they should] optimize that state of affairs as nicely.”
Legends has a bunch of mature sports activities properties as shoppers, however earlier this 12 months, the corporate took steps to diversify its shopper portfolio and ramp up its enterprise inside the rising sports activities area of interest. The corporate acquired Gabby Roe’s Maestroe Sports activities & Leisure in February and subsequently launched Legends Development Enterprises, which Roe now leads as president. Previous to founding Maestroe, Roe was the final supervisor of the AVP Professional Seashore Volleyball Tour (2002-2008) and the chief director of Main League Lacrosse (1999-2002).
Maestroe spent the earlier decade serving to to develop rising sports activities properties, together with the American Cornhole League and Spikeball. “We did consulting. We did sponsorship gross sales. We’d fill in and spherical out the areas of their entrance workplace [that lacked expertise],” Roe stated.
Legends noticed the chance to mix Roe’s distinctive strategy to rising rising sports activities belongings with its assets and experience. Tomon stated they needed to assist upstart leagues scale “and actually take that second section of the hockey stick journey on their progress.” Legends additionally felt that the power of the corporate’s stability sheet would allow it to put money into and direct these rising companies.
Legends is investing between six and eight figures in rising properties it believes are positioned to attain accelerated progress in sectors the place the corporate excels. Investments in upstart leagues are engaging to Legends due to the potential upside. For instance, PFL lately raised cash at a $500 million valuation, and One Championship launched new shares at a $1.2 billion valuation final December. “The idea [behind] these rising sports activities has began to come back to fruition with the [$4 billion] sale of UFC and a few of these different properties,” Roe stated.
The UFC is undoubtedly an outlier, however the alternative to hit that sort of dwelling run is why Legends is placing cash behind a few of these early-stage sports activities properties. Legends isn’t basing its enterprise on the concept “each shot goes to be the UFC,” Tomon stated. ”There shall be one other UFC, little doubt. It’s simply ensuring we’re in the best place for it.” UFC was by no means a Maestroe shopper and isn’t at present an LGE shopper. Legends does deal with omnichannel merchandise gross sales for the MMA promotion.
Legends’ curiosity in investing alongside a extra conventional service-for-fee relationship needs to be interesting to many rising sports activities leagues. Roe stated the company and property are “way more aligned when [they] each have the identical long-term constructing of EBITDA goal,” Roe stated. Rights house owners who don’t discover the choice interesting should purchase the “360 providers” on an a la carte foundation.
Tomon outlined long-term as “10 to 20-plus” years. He defined that there’s a lot of heavy lifting to be executed to get a brand new sports activities property off the bottom, and to do it appropriately, Legends and the upstart league have to have a stable settlement in place.
Model partnerships are a bottom-line driver for many high-growth sports activities properties (AUDL and TeamTrak included). In lots of circumstances, these offers may also be a “main supply of co-promotion,” Roe stated, and model tie-ups could be an space LGE will concentrate on with each.
Legends International Enterprises can even assist the rising sports activities properties develop their fan bases by the event of recent media partnerships each domestically and internationally, and finally by stay occasions. “And all of that’s tied along with information [insights] and analytics that we’re going to have the ability to dive tremendous deep into,” Roe stated. The presumption is figuring out who the fan is and why they’re participating with the league will allow the property to derive extra income from these people and their companions.
