Most sports investment conversations today focus on franchise valuations, TV deals, and league revenue sharing. But there's a more fundamental question that often gets overlooked: Who owns the building?

The difference between renting and owning your stadium isn't just about cutting a lease check. It's about fundamentally restructuring how value flows through your entire operation.

When you control your venue, three things change immediately:

Revenue capture expands dramatically. Premium seating, naming rights, parking, concessions, non-game events—these revenue streams belong entirely to you, not a landlord. There's no revenue split, no lease escalation clauses, no uncertainty about renewal terms.

Operational flexibility increases. Want to host concerts, festivals, community events, or corporate gatherings on non-game days? You're not asking permission or negotiating rates. You're capturing 365-day utility from an asset that previously generated income 20-30 days per year.

The asset creates optionality for development. Stadium ownership becomes the anchor for mixed-use real estate—residential, retail, hospitality, office space—all feeding off the traffic your team generates while making your venue a true community hub.

When Arsenal Football Club faced a decision in the early 2000s, the choice was clear but difficult: stay in their beloved 38,000-capacity Highbury Stadium or build something bigger that could compete financially with Europe's elite clubs.

They chose transformation over tradition.

The Challenge at Highbury:

Despite being one of football's most iconic venues, Highbury's limited capacity restricted matchday revenue compared to rival clubs with larger stadiums. The club was denied planning permission to expand due to community constraints, which meant staying meant accepting a permanent revenue ceiling.

According to Arsenal's own statements at the time, "Very close to 50 per cent of our revenue will be gate income at Emirates Stadium, compared to around 30 per cent at Highbury."

The Emirates Solution:

Arsenal completed the Emirates Stadium in 2006 at a cost of £390 million. The new 60,704-seat venue was designed not just for scale, but for revenue multiplication through modern infrastructure.

The Revenue Transformation:

The financial impact was immediate and substantial. Arsenal's official statements projected that "The revenue from executive boxes and Club Level alone will be almost equivalent to the [whole] income at Highbury."

The revenue jump came from multiple sources:

By 2022-23, Arsenal's matchday revenue reached £102.6 million, and in 2023-24, that figure grew to £131.6 million—establishing the Emirates as one of the highest-grossing venues in world football.

The Long-Term Position:

Arsenal is now discussing expansion plans that could push capacity beyond 70,000 seats, which would generate tens of millions in additional annual revenue. The club's season ticket waiting list exceeds 100,000 people, demonstrating that demand far outstrips supply—a textbook example of how stadium ownership creates compounding value over time.

The stadium ownership decision didn't just improve cash flow. It transformed Arsenal from a club constrained by its venue into one of Europe's wealthiest football organizations with the infrastructure to compete financially at the highest level.

This isn't just a major league phenomenon. At Momentous Sports, we're applying this same integrated model in markets where the opportunity is even more pronounced.

Our strategy centers on premium secondary markets with strong fan passion, but underdeveloped sports infrastructure. We're not just buying teams, we're building the venues and surrounding districts that multiply their value.

Lower acquisition costs. Emerging league franchises and secondary market opportunities offer lower entry valuations than established major league teams.

Municipal alignment. Cities are actively seeking catalytic projects that drive economic development and community engagement. Stadium-anchored districts deliver both when full synergy exists between team ownership, developers, and local government.

Multiple exit paths. League promotions, franchise appreciation, real estate recapitalization, or hold for cash flow, each component creates optionality.

Inflation protection. Commercial leases with built-in escalators, hard assets, and recurring stadium events provide natural hedges against inflation.

Sporting Club Jacksonville launched in 2022 with professional men's and women's teams, a 12,000+ member youth academy, and plans for a 15,000-seat stadium anchoring a mixed-use district.

Before the inaugural season, the club sold 6,000+ season tickets—the most of any team in the league. We secured a major healthcare system as a founding sponsor. And we're now leading development of the district that will surround the venue.

This isn't a one-time project. We're thematically pursuing similar opportunities across the U.S., Latin America, and Europe.

For qualified investors evaluating sports opportunities, the stadium ownership model offers structural advantages:

The Atlanta Braves demonstrated this blueprint at scale. Their development revenue jumped 49% to $25 million in Q2 2025, while The Battery attracts 10.3 million visitors annually. Team revenue more than doubled from $262 million in 2016 to $641 million in 2023 after moving to their owned venue.

We're not reinventing the model. We're deploying it where competition is lower and valuations are more attractive.

The question isn't whether owning your stadium creates value—the data from London to Atlanta to Jacksonville already confirms it does.

The question is whether investors can access this strategy before it becomes consensus.

Most capital is still flowing into isolated bets: minority stakes in major franchises, or standalone real estate plays adjacent to teams others control. Very few are integrating both from inception in markets where the arbitrage is most compelling.

That's the opportunity we're building toward at Momentous.

Visit the Momentous Sports website or reach out directly to discuss how this strategy is being deployed.

Leadership:
Backed by Magnolia Hill Partners, with partners including John Elway, Tim Tebow, Blake Bortles, Andrew Cathy (Chick-fil-A CEO/Four Stones), and Scott Friedman (former Robinhood President).

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.