As both a form of entertainment and inspiration, major sports leagues have been a huge piece of our society for many years.
As sports and skill sets have developed and evolved, so too have the enterprises and businesses surrounding them.
A recent article by CNBC details how two veteran sports executives are expanding their horizons to support startup companies with a lot of potential.
“Two longtime sports executives are launching an investment firm they say will back startups capitalizing on the growing opportunities at the intersection of sports, media and entertainment.
Velocity Capital Management said Tuesday it will invest up to $50 million in early-stage companies with enterprise values of up to $2 billion.
One of Velocity’s co-founders is David Abrams, a co-owner of the English Premier League’s Crystal Palace and a former private equity partner and chief investment officer of Harris Blitzer Sports & Entertainment, which owns the NBA’s Philadelphia 76ers and the NHL’s New Jersey Devils. The other co-founder is Arne Reese, who most recently served as the U.S. CEO of Sportradar, a sports technology business.
The firm has closed its first investment in Camp NYC, which creates shop-and-play retail experiences based on intellectual property from popular children’s entertainment, such as Disney’s “Mickey & Friends” and “Paw Patrol.”
“Camp is a business that cuts across some of the things we’ve been looking at as a firm,” said Abrams.
The company’s stores, which are a mix of a shopping and interactive experience, are located in New York City, including its flagship location on Fifth Avenue, as well as in New Jersey, California and Texas.
In an interview, Abrams and Rees said they decided to start Velocity after watching the sports and media ecosystem evolve in such areas as technology, analytics and intellectual property.
“For now we are focused primarily on growth-stage companies,” said Abrams. “These are companies where we will likely take a non-control investment, but want to play an active role as an advisor or on the board.”
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The article highlights that these two executives are primarily concerned with sports, media, and technology, as these three items have been on the rise recently.
Their niche is sports, so expanding into this realm is both a logical and tactical move.
What we can learn from this expansion is two-fold.
First, when there is a need for something within your niche, take initiative and start doing the work.
These executives saw an opportunity for themselves and the sports industry at large, and they rightfully decided to capitalize on it.
Second, always be thinking of new ways to generate revenue and make your business more profitable and appealing.
As sports executives, Abrams and Rees have a knowledge base that allows them to aid other businesses around them while still feeding their own careers.
Share your knowledge and work to improve everyone around you in the process.
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