The Rise of Alternative Sports Leagues and Formats
With evolving consumption behaviours and the emergence of the 3.0 fan, opportunities for Alternative Sports Leagues and Formats are rapidly growing.
The global sports landscape is evolving.
At the heart of this change is the emergence of the 3.0 fan.
Sports 3.0 fans:
Consume storytelling and drama
Aspire to be globally and digitally connected
Seek active participation through social media
Value personalization and cultural relevance
Engage through personalities, brands and data
Global, traditional sports leagues and franchises are growing fast - against the backdrop of changing trends and the emergence of mass Sports 3.0 fans.
Cumulative value appreciation - 2001-2023:
NBA: 1,917%
NFL: 1,130%
Top 10 European football clubs: 483%
S&P 500: 317%
(*Goldman Sachs - Changing the Game / Forbes data)
M&A activity in these regions and leagues are at an all time high:
NBA team Phoenix Suns - $4.0bn sale (2022)
Football club Chelsea F.C. - $5.3bn sale (2023)
NFL team Washington Commanders - $6.1bn sale (2023)
The changing face of sport fandom and fan engagement has accelerated the growth and valuation of traditional franchises - but it has most promisingly instigated the Rise of Alternative Sports Leagues and Formats.
At the core of the rise of emerging sport properties is technology.
Rapid technological advancements and mass accessibility has enabled unprecedented levels of fan acquisition, engagement and retention in niche, alternative sports.
The teams behind the rising leagues leverage technological evolution in the industry to improve their own efficiency and performance, while taking the consumer experience to the next level - through refined immersion in non-live sport capabilities.
Present Ventures welcomes this dynamic, identifying alternative content delivery methods (streaming, OTT, FAST etc), social media capabilities and compatibility with AI and advanced data experiences as being fundamental to the growth of emerging sport formats.
Case studies of success:
We are witnessing the rapid acceleration of alternative sport leagues and formats, at various stages of growth, but all invariably leveraging technology to build intrinsic fan communities, immersive experiences and revenue streams.
TKO group - merger between the UFC and the WWE - valued at c.$20bn on the NYSE.
Blending mainstream media rights with innovative digital/social media marketing was key to the UFC’s success.
Indoor football league - King’s League - launched in 2023, reaches 170 million live viewers in its first season.
Digital-first platform leveraging the power of streaming in the 3.0 era.
Rise of ‘action’ sport leagues:
Snow League offers a $1.5mn combined prize purse to winning snowboarders in its first season.
Production is geared towards digital engagement - innovative camerawork, emphasis on athlete personality and skill to drive short and potentially long form content (clips/ docuseries).
Power Slap draws in $36mn in revenue from sponsors and strategic partnerships alone, while amassing social media coverage comparable to the ‘big four’ American sport leagues.
Power Slap drives revenue through mass attention, derived from calculated social media integration.
Niche offerings like competitive fishing are gaining traction in the United States - Wasserman reports a 100 million audience in the US.
Emerging, niche leagues reach wider consumer bases through social media, but most importantly leverage availability of long-form content delivery methods (FAST) to provide regular streaming of events to dedicated fanbases.
American Flag Football League, offering a more accessible, while remaining physically challenging, version of American football, has received $28mn in funding in its launch year.
Leveraged celebrity athlete involvement and NFL fanbase to reach digital audiences via social media and broadcasting advertising.
Globally emerging sports like SailGP have picked up investment for various nations’ teams - Great Britain’s team is valued at $40mn+.
Acquisition of F50 catamaran fleet, benefiting from major technological advancements in the sailing space, SailGP has upped the innovation and professionalism of the league, driving attention to a high-skilled, high-powered emerging sport.
The success of the first edition of Alexis Ohanian’s Athlos affirms the fundamental principles for emerging sport development which guide Present Ventures’ outlook on this space:
A clear understanding on how to appeal to the demands of 3.0 fans:
Identifiable, personable athletes - rising stars in their sport (Gabby Thomas, Alexis Holmes).
Cultural appeal - music performances from famous artists.
Immersive experience through entertainment, rather than solely pure sport.
Attracting athletics fans through partnership with World Athletics. Stakes established with world ranking points in play.
Establishing key verticals, capturing escalating momentum in both women’s sports and athletics in the US, post-Paris Olympics.
How is Present Ventures embracing this rise?
Present Ventures is taking on the ascent of alternative sports through an expanding portfolio of the most promising, disruptive emerging sport leagues and formats in the game.
Unrivaled Basketball
Unrivaled, launching in January 2025 in Miami, is set to revolutionize the sport in the US and women’s basketball worldwide.
Unrivaled will simultaneously benefit from, and develop the growing commercial value of WNBA stars as relatable, marketable personalities.
Leveraging a fundamentally traditional and recognisable sport, and blending it with an alternative, trending format - 3x3 competition, is Unrivaled’s call to basketball fans, or consumers unfamiliar with the WNBA’s talent roster.
Beyond monetising, marketing and promoting the stars of women’s basketball, Unrivaled will leverage various digital platforms, technological tendencies of 3.0 fans to generate viable revenue streams and establish immersive consumer experiences.
Unrivaled has already expanded its roster to 36 players, secured a multi-year media rights partnership with TNT and generated extensive support from players, fans and investors. Unrivaled is ahead of the game, and has got off to a flying start.
TMRW Sports - TGL
Harnessing and technology to modernize strategies to sport, capitalizing on the behaviours of 3.0 fans - TMRW Sports is powering the TGL, set to launch in January 2025 too.
Like Unrivaled, the TGL reimagines a traditional, fundamentally accessible sport - golf, and strives to engage younger generations.
TMRW-TGL are appealing to the essential demands of 3.0 fans, establishing a universally accessible and scalable immersive experience. Tech-dominated, with in-game modifications to increase drama, as well as the players being mic’d up during the tournaments to drive an athlete-led connection with fans.
Backed and represented by Tiger Woods and Rory McIlroy, the TGL will be seamlessly integrated into the global golf ecosystem, welcomed in by the PGA’s stars and partners.
Crucially, the TGL’s team’s eyes are set on the world stage, seeking international expansion into Europe and Asia, to capitalize on an $80bn+ global golf market.
TMRW Sports and the TGL understand how to navigate, profit from and encourage the development of the mass 3.0 sports fan - taking a fundamental sport in golf, and upping the technological and immersive appeal. We at Present Ventures recognise this and expect the TGL to become a new force in global sports.
What’s Next?
Rising alternative sports leagues and start-up formats face challenges as they look to lay their foundations for growth.
Patience is a must - traction must be built prior to expansion and new rounds of engagement and investment.
New emerging sports ultimately need talent - athletes that are both marketable and highly skilled, answering the central demands of 3.0 fans in their search for new entertainment.
Emerging sports and properties must learn how to monetize their attention and hype in the industry, and on social media.
These challenges offer opportunities for growth.
Our expertise in this high-growth, high-competition area, and our unique understanding of the new wave of sports fandom and consumption allows us to recognise and guide the next great emerging sport leagues.
