The Experience Economy: Why has investment in sport captured institutional attention?
According to Eric Nicoli, CBE, the rise of sport as an investment class lies in its unique position at the intersection of entertainment, media, technology, and global culture.
“It is a global entertainment product with loyal audiences, scarce assets, and multiple revenue streams,” he told guests at an event in London last month, hosted by Stonehage Fleming’s Head of Sports Entertainment Paul Weldon.
Eric was speaking on a panel with Sue Day, MBE, Director of Women’s Football and Para Football at The Football Association, and Bobby Aitkenhead, Managing Director of IDC Ventures, that partners with over 260 family offices to offer diversified venture capital opportunities.
One significant trend discussed by the panel was the rise of the ‘experience economy’ driving investment in the sector. “With AI accelerating, human experiences will be the premium or most desirable thing we can get,” noted Bobby.
Women’s sports were highlighted as one of the most compelling and underutilised investment opportunities in the global sports ecosystem. “Revenues in women’s sports are growing four and a half times more quickly than men’s sport, creating exponential growth opportunities for early investors,” Sue added.
Audience members heard insights on the role of technology and analytics, the dynamics between individual investors and institutional competitors, reputation risk and community relationships, and the influence of multi‑club ownership and portfolio diversification. Yet the panellists remained grounded in their approach to treating sport as a long‑term and responsible investment.
“Too many investors allow passion for a sport or team override smart business judgement,” said Eric. Though efforts to professionalise, noted Sue, can be costly and requires the implementation of strong governance structures. “You have to make sure you have the right governance and safeguards around whatever you are investing in and make sure the money goes where it needs to go.” Emphasised Sue.
The panel also highlighted the risk of overreliance on media rights as a primary revenue source. “Diversifying revenue streams beyond traditional broadcasting is essential for resilience,” Bobby noted. With the media landscape itself undergoing rapid transformation, the ability to generate income from multiple verticals has become increasingly important.
Emerging issues such as player welfare and the distinct reputation risks inherent to sports ownership also featured prominently. With expanded schedules, international competitions, and relentless performance demands, player mental health has become a critical concern. “Successful sports investment requires careful management of community relationships,” said Eric. “That means transparent communication, and alignment with fan expectations.”
Photo credit: Liam McKay, Atlético Madrid vs Barcelona, February 2017