Sports business stories have dominated the headlines this year, but 2023 will be remembered for the rise of the athlete investor.
We have seen Tom Brady take a stake in Birmingham City, an investment group including Anthony Joshua, Rory McIlroy and Patrick Mahomes put money into Formula 1 team Alpine, and US sport stars JJ Watt and Kealia Watt invest into Burnley.
This is of course nothing new. The likes of David Beckham, Michael Jordan and Alex Rodriguez are among the famous pioneers in that respect, but the rate in which sportspeople have turned to the world of investment and business was on a rapid upwards trajectory in 2023.
The days of sports stars’ business interests extending to picking up cheques for a few photoshoots and autograph sessions are behind us – just look at the complexity of Lionel Messi’s revenue-sharing agreement with Apple.
The stupid footballer is dead – not only do they have best-in-class business teams around them, but they have acute business sense in their own right.
Equity, investment and ownership are all now words in an athlete’s vocabulary at the negotiating table. And why shouldn’t they be when they can bring so much more than just capital and a personal brand?
There is huge experimental learning which the best athletes apply not just to how they work within a team but to the boardroom too.
Nobody does teamwork better than successful sports sides and the corporate world has been following this trend since the introduction of executive coaching in the 1970s and 80s.
These courses are based on replicating the athlete and coach relationship of sport.
Athletes from various disciplines not only come with a skillset that can be applied to business, but with that expertise also comes extensive networks, following and a profile.
Few would have heard of Burnley in the world of American football, but thanks to NFL star Watts, brands, fans and followers from the US have been added to an ever-growing portfolio, social accounts and even stands.
Some of those investing even have greater following than the team and organisations they take a stake in – just look at the media machine Wrexham have become, aided by their A-list owners Ryan Reynolds and Rob McElhenney.
Of course, cynics would say that investments like Brady’s into Birmingham City is just to add a friendly face to a group’s purchase, but majority owners Knighthead Capital Management will know that the former quarterback gives them far more than a bit of clout.
I can talk – quite literally – from experience. I have delivered keynote speeches and masterclasses to the likes of BMW, Deutsche Bank and Microsoft and they all want insight from leaders of their fields because it offers a different perspective and varies expertise.
These businesses are successful because they search for the 0.1 per cent edge over the competition day in, day out – which is similar to an elite athlete’s mindset.
In this respect, there is not much of a difference between the boardroom and sport.
I took the necessary steps to ensure that when I hung up my boots I could embark on a second profession and one that would last twice as long as my playing career.
How to fill their days will definitely be on the mind of these sports stars investing – they are now far more conscious of what is ultimately a short career.
The opportunities which now await them are now greater than ever before, with more money involved and the relationship between sport and business growing closer all the time.
Most will be accustomed to working across elite environments and will want to be around like-minded individuals at the highest levels in pursuits away from the pitch, court or gridiron.
This year has been a watershed moment for the athlete investor as it has highlighted that potential is limitless whether it be ownership, equity or added commercial tie-ins.
They also aren’t limited to sports-related pursuits, with start-ups and tech companies being of particular interest.
Do not be surprised to see more recognisable faces in the boardroom this time next year as opportunity awaits.
Paul McVeigh is a former professional footballer turned psychologist and keynote speaker.
