There are certain things that you should know first before entering into sports ventures. In this article, we will give you 5 main things to consider first when entering into such ventures. We will also introduce you to 3 of the well-known sports business ventures.
The concept of venture capital as we all know is very popular among entrepreneurs not only because of the money they could get, but also because of other resources they could easily tap and access from the partnership. This concept is actually a strategic alliance between two or more business parties that form a strategic partnership in order to share markets, assets, resources, intellectual property, knowledge, technical skills and of course profits.
#1: Have a clear and informed perspective of the sports venture objective– It is important to have a clear and informed perspective when dealing with sports venture capitalists for the very first time. Every firm and venture capitalist has their own specific goals and strategies, attributes and philosophies when considering an investment. Every entrepreneur must consider the profile of the venture capitalist firm first before making any initial contact.
It is not enough that you just assess the venture capitalist’s economic capacity. You must also try to take into consideration your company’s capacity. Try also to assess yourself. You must clearly know what products you sell and what geographical areas will still remain beyond reach if you do not have local partners. You must also consider who your competitors really are and what they do have that you don’t have. Know all your strengths, weaknesses as well as your opportunities and threats. In this way, you will achieve a clear and very informed perspective about your sports business and the capital venture.
#2: Sports venture activation reduces sports business competition– Every business fills a share in the large pie of the market share. Some businesses have larger market share compared to others while others also have smaller share compared with others. One way of increasing your market share is by reducing competition. By taking active participation in a sports venture, you will eventually decrease the level of sports business competition. It will definitely increase your sales as well as your profit scales.
#3: Different cultures bring risk to the sports venture– There are also instances where risks in sports ventures are involved. One cause of such risk is the cultural differences that exist between the partners. Because strategic partnerships are built on trust and utmost confidence bound by mutual goals, one of the main risks the alliance may face is the difference in cultures. A certain partner may not trust another when business operates in a certain way and have a sense of divergent goal along the way. Even with similar strategic goals, partners who may lack trust may also lack the willingness to reciprocate.
#4: True willingness measures the venture’s effectiveness– A sports venture capital concept will only be effective when there is really a mutual willingness to move forward together as a team. Not even legally signed contracts have a good use and value if mutual trust, confidence and true acceptance of the specific terms are not present.
#5: Better not engage in joint ventures if motives of both parties are questioned- As earlier said, it will only be mutual trust that will make the sports venture work effectively. If questions are raised and motives of both parties are in doubted phase, then it is best not to engage in a business venture that can’t be measured and be gauged. A graceful exit would then be preferred rather than engage in ventures which by both parties were not revered.
Sports Business Ventures
Sports Business Ventures is actually a venture capitalist firm that specializes in investments in emerging growth and development companies. It primarily invests in sports and leisure sector with focus on media content and its delivery, events and property along with sports apparel, equipment and merchandise. Sports Business Ventures invests from $1 million to $30 million in its selected group of companies. The firm actually makes direct investments but may also co-invest with other private equity and venture capital firms on deals that seek the cooperation of a strategic leisure and sports co-investor. Sports Business Ventures seeks to hold its viable investments for a relative period of 3 to 6 years. The company is now based in Century City which is in California.
Digital Sports Ventures
Digital Sports Ventures formerly known as AthletixNation, Inc. provides college and division sports video and other interactive applications for mobile devices and websites. The firm acquires college basketball and football footage simultaneously straight from the broadcast to produce sports video segments, including game highlights, conference recaps and plays of the week that are then distributed to publishers through a series and network of distributors, including sports blogs, sports sites, news sites along with radio and TV stations, message boards, and even in mobile carriers in United States.
Digital Sports Ventures also has aggregated rights to the regular season as well as to the conference tournament game footages for Big 12, Big Ten, PAC-10, ACC, SEC, Mountain West and Conference USA. It also has the rights to syndicate the video for out-of-conference matchups. The firm was incorporated in 2007 and have its base in Overland Park, Kansas. Digital Sports Ventures was later acquired in 2011 and now operates as a legal subsidiary of the Digital Broadcasting Group Incorporated.
Capital Sports Ventures
Capital Sports Ventures is actually a venture capitalist firm that specializes in growth capital investments. It intends to invest in sports and other emerging lifestyle events and properties. The company was founded in 2013 and is now based in Arlington, Virginia. The company supports each of the investments and further takes an active role in providing sound strategic guidance for all of the sports venture partners. Delivering decades of experience in the sports industry and event execution, along with marketing and consulting, Capital Sports Ventures offers convenient resources to assist blue-chip brands achieve the right results. The company’s advisory team is squarely focused on the passion they share with the clients’ initiatives and is also focused on the positive results produced through inter-company collaboration.