Checketts’ $1.2 Billion Bet: Women’s Sports and Golf Lead the Charge in Sports Investment
Dave Checketts, the former president of the Utah Jazz and New York Knicks, is making waves in the sports investment world. His recently launched $1.2 billion private equity fund, Cynosure | Checketts Sports Capital, is actively targeting opportunities in women’s sports and golf, signaling a significant shift in where major money is flowing within the industry.
The Rise of Women’s Sports as a Prime Investment
Checketts’ focus on women’s sports isn’t a surprise to industry observers. The sector is experiencing unprecedented growth in viewership, attendance and revenue. Leagues like the NWSL and WNBA are attracting significant investor interest, and emerging properties like League One Volleyball (LOVB) and Unrivaled are gaining traction. Checketts himself stated, “Women’s sports especially, is a great place to invest, and that’s where we’re looking.” This sentiment reflects a broader recognition of the untapped potential within women’s sports, driven by increasing fan engagement and media coverage.
Alex Morgan’s Trybe Ventures’ lead capital partnership with WTGL, the women’s edition of TMRW Sports’ indoor golf league, further demonstrates this trend. The investment highlights the growing appeal of innovative formats within women’s sports and the willingness of high-profile athletes to back these ventures.
Golf’s Dual Path: PGA Tour, LIV Golf, and Beyond
Alongside women’s sports, golf is also a key target for Checketts’ fund. He praised the leadership of PGA Tour Commissioner Brian Rolapp and LIV Golf’s Scott O’Neill, stating they are “two of the smartest guys in sports.” This acknowledgment comes at a pivotal moment for the sport, as the PGA Tour and LIV Golf navigate ongoing merger talks and evolving competitive landscapes.
The financial dynamics within golf are also attracting attention. Saudi Arabia’s Public Investment Fund (PIF) has invested $5.3 billion in LIV Golf, while the PGA Tour recently secured a $1.5 billion investment from the Strategic Sports Group (SSG), valuing the tour at over $12.9 billion. The indoor golf league TGL, backed by Tiger Woods and Rory McIlroy, is also valued at around $500 million after a Series A funding round.
ALK Capital and the European Football Connection
Cynosure | Checketts Sports Capital has already made its first investment, backing ALK Capital, the owner of Burnley FC and RCD Espanyol. This strategic investment, reuniting Checketts with Alan Pace after their successful partnership at Real Salt Lake, aims to accelerate growth across these European football clubs. ALK Capital’s focus on “integrity, innovation, long-term value creation, and championship culture” aligns with Checketts’ investment philosophy.
The College Sports Question Mark
While Checketts sees potential in college sports, he expressed reservations about the suitability of private equity investment in the sector. He questioned whether the traditional college sports model, with its emphasis on fan loyalty and affordability, could deliver the 25% returns typically expected by private equity firms. He highlighted the potential clash between the desire to modernize facilities and raise prices with the expectations of passionate fan bases.
Frequently Asked Questions
Q: What is Cynosure | Checketts Sports Capital?
A: It’s a $1.2 billion private equity fund focused on investing in high-potential sports opportunities globally.
Q: Which sports are the fund’s primary targets?
A: Women’s sports and golf are currently the main areas of focus.
Q: What is the fund’s approach to investment?
A: The fund seeks to take minority stakes in clubs with strong operators and a commitment to fostering a positive culture.
Q: Has the fund made any investments already?
A: Yes, the fund has invested in ALK Capital, the owner of Burnley FC and RCD Espanyol.
Q: What are Checketts’ concerns about investing in college sports?
A: He questions whether the traditional college sports model is compatible with the return expectations of private equity.
Pro Tip: Keep an eye on emerging leagues and innovative formats within women’s sports – these are likely to attract further investment in the coming years.
Stay tuned for further developments as Cynosure | Checketts Sports Capital continues to deploy its capital and shape the future of sports investment.
