What Most People Miss
Most sports investment flows into two separate buckets. Buy a meaningful stake in a franchise. Or develop real estate around a team someone else owns.
Almost nobody does both—own the team and build the real estate around it. When you control both sides, something changes.
The team brings people. Fans, sponsors, media attention. You own the buildings where that attention converts to revenue—retail, apartments, hotels, parking. Each side strengthens the other. Better real estate improves the game experience. Team success drives real estate demand.
The Golden State Warriors show how this works:
The complex hosts over 200 events annually
Warriors team revenue nearly doubled from $474M in 2020 to $765M in 2023
Chase Center and surrounding Thrive City generated $4.2 billion in economic impact
How the Economics Work
Multiple Revenue Streams
Traditional sports deals separate returns:
Minority team stake: Shared league revenue, franchise appreciation, varying control
Stadium naming rights: One contract, zero operational control
Adjacent development: Traffic from someone else's team, subject to their decisions
Own both the team and the real estate, and you participate across multiple sources:
From Team Operations:
Tickets, sponsorships, broadcast rights
Merchandise and concessions
Premium seating (yours, not league-shared)
Non-game events
From Real Estate:
Residential rental income
Retail and restaurant leases
Hotel and entertainment revenue
Office space
Parking operations
Advantageous tax structures through real estate investments
The Dual Investment Advantage
Traditional PE funds struggle to place capital into both the team and the real estate. They're constrained by siloed investment philosophies and restrictions between departments.
Family office capital works differently:
Place capital in both PE and Real Estate buckets in one decision
Develop in phases and recycle capital
Structure deals beyond conventional terms
Wait for optimal exit windows
Focus on secondary markets with less competition
Market Timing
Several trends are converging:
Sports valuations at record highs - Average NFL team: $7.13B, up 20% year-over-year; three teams now valued above $10 billion
Secondary markets growing - Sun Belt migration accelerating
Mixed-use premiums proven - Developments like Chase Center's Thrive City and Hollywood Park commanding significant valuation multiples
Private equity barriers falling - NFL approved PE ownership in 2024; Arctos Partners and Ares Management already completing deals
Municipal appetite - Cities want catalytic community-based projects post-COVID
The gap: integrated team and real estate from day one.
Stan Kroenke and SoFi Stadium
Stan Kroenke, owner of the Los Angeles Rams, shows how this works at scale. He privately financed over $5 billion to build SoFi Stadium and develop the surrounding 298-acre Hollywood Park entertainment district.
The Team: Kroenke purchased the Rams in 2010 and moved them back to Los Angeles in 2016. The franchise is now valued at $10.4 billion.
The Project: Hollywood Park SoFi Stadium opened in 2020 as the centerpiece of a massive mixed-use development:
70,000-seat stadium (expandable to 100,000)
2.5 million square feet of retail, dining, and entertainment
6,000 residential units
Up to 1.5 million square feet of office space
300-room hotel
25 acres of parks and open space
Early Results:
Rams revenue hit $756 million in 2023
Franchise value reached $10.4 billion
$625 million naming rights deal with SoFi (flows entirely to Kroenke, not to tenant team the Chargers)
Hosted Super Bowl LVI in 2022 and College Football Playoff National Championship in 2023
Selected to host 2026 FIFA World Cup matches and 2028 Olympics opening ceremony
The Real Estate Play: The 298-acre Hollywood Park development creates multiple revenue layers beyond the stadium itself, with over 8.5 million square feet planned for mixed-use development.
The Revenue Model:
Team operations (tickets, sponsorships, broadcast rights)
Stadium events (concerts, conventions, UFC, WrestleMania)
Premium seating and suites (85% of revenue to Kroenke)
Residential leases across 6,000 units
Commercial retail and restaurant tenants
Hotel operations
Office space leases
Parking revenue
The Ownership Advantage: Unlike traditional stadium arrangements, Kroenke owns the venue outright, capturing the majority of revenues rather than sharing with municipalities or leagues. The Chargers pay rent as a tenant, while Kroenke controls all non-NFL revenue streams.
Secondary Markets
The smartest operators target thriving communities with strong fan passion but underdeveloped sports infrastructure. Places where demand exists but supply hasn't caught up yet.
The advantage:
Lower team acquisition costs vs. major leagues
Cities eager for catalytic projects
Less institutional competition
Easier to integrate authentically with community
Multiple expansion paths (league promotions, franchise appreciation, real estate exits)
For Qualified Accredited Investors
Structural Advantages:
Multiple value streams vs. single-asset bets
Inflation protection through commercial leases with escalators
Community goodwill creates regulatory moat
Hard asset backing (land, stadium, buildings) plus franchise equity
Access:
Opportunity to participate in integrated sports and real estate strategies
Direct relationship with operating partners who have credibility and networks
Access to deals typically reserved for institutional investors
Diversification:
Low correlation to traditional stocks and bonds
Sports exposure without single-team risk
Real estate upside with sports attendance downside protection
The Bottom Line
Chase Center, SoFi Stadium, and secondary market projects already prove this model works. The question is whether investors can replicate it at scale in markets where competition is lower and valuations are more attractive.
Most capital still flows into either major league minority stakes or standalone real estate projects. Very few pair both from inception.
For sophisticated accredited investors who understand that the most valuable sports assets of the next decade may not be in established major leagues, but in secondary markets where you can own both the team and the land underneath it, the opportunity is substantial.
This newsletter is for informational and educational purposes only and does not constitute investment advice, an offer to sell, or a solicitation of an offer to buy any securities. All financial data presented represents historical performance of specific venues and should not be construed as indicative of future results. Past performance does not guarantee future results. Investment in sports venues and related assets involves significant risk, including potential loss of principal. The behavioral economics concepts discussed are based on academic research and historical case studies that may not apply to all situations or guarantee similar outcomes. No representation is made that any investment approach discussed herein will or is likely to achieve results similar to those shown. Any investment decision should be made only after careful consideration of all relevant factors and consultation with qualified financial, tax, and legal advisors. Momentous Sports and Magnolia Hill Partners make no representations or warranties regarding the accuracy or completeness of this information and disclaim any liability arising from your use of this information. This material has not been prepared in accordance with requirements designed to ensure unbiased reporting, and there are no restrictions on trading in the securities discussed herein prior to publication. For qualified accredited investors interested in learning more about our educational materials and investment approach, please contact us directly for a confidential discussion.