SBJ Unpacks: The sectors driving investment opportunities

Look no further than the Moody Center in Austin for a clear justification for private equity in collegiate sports venues, said Francesca Bodie , COO of Oak View Group, which operates the venue on behalf of Texas.

“There’s clearly an opportunity,” Bodie said onstage at SBJ Dealmakers in Washington, D.C. “We saw that all too well with the Moody Center. If you look at Austin from a marketplace perspective, it has 1.3 million people on paper, [but] it had no professional sports team -- no disrespect to the Longhorns, because they pretty much are a pro team -- it’s not a market that would have been top 20 in the traditional boxes you’d check. There’s not a lot of infrastructure, but it’s a top five venue in the nation for gross ticket sales.”

Bodie was joined in the opening panel by Ravens President Sashi Brown , PFL CEO Peter Murray and Jim Van Stone , president/business ops and CCO of Monumental S&E, and they discussed a variety of sports investment topics.

Bodie and others agreed they’re not quite sure on the details of private equity in college sports, emphasizing that the idea of backing athletic departments is murkier. “If I’m investing in venues, I’m buying. If I’m investing in sports, I’m a sell,” Brown said.

Within venues of all varieties, increased revenue from more premium offerings is also a major growth possibility, the panelists said. Under the recently announced $800 million plan to redevelop Capital One Arena in D.C., the percentage of premium seats will go from 15% to 35%, Van Stone said, with many different price points and experience levels.

“It is not just about the infrastructure,” said Murray, whose PFL stages events in a wide range of international venues. “It’s about curating the experience for fans at different tiers, and that takes vision, creativity and being in touch with fan base, and that can all be monetized.”

Bodie’s OVG spends a lot of time maximizing the VIP potential in its recent deals. “Premium hospitality has never been stronger,” she said. “We cannot seem to provide enough VIP. Whatever that price point is for you to feel like a VIP, we have been able to answer that question. If you have $10 extra dollars, there should be a journey. If you have $1,000 extra dollars, there should be a journey.”  

Brands aligned with the WNBA earned more than $136 million in media value during the 2024 regular season, reports SBJ’s David Broughton from a Relo Metrics study.

The company tracked the live telecasts and social posts (earned and owned) for each of the league’s 12 teams (240 games in all), aggregating more than 8 million seconds of exposure time for more than 300 brands.

Games featuring the Indiana Fever and Caitlin Clark delivered the seven most-valuable broadcasts in terms of participating brands and 45% of the total broadcast value generated during the regular season. The most valuable game was a mid-July visit to the Dallas Wings that delivered $3.1 million in value to 28 brands. AT&T, Coinbase, State Farm and Nike each earned more than $375,000 during the broadcast, according to an SBJ analysis of the data. Additionally, signage, verbal mentions and social media posts for College Park Center, the host arena, generated $239,000, which represented a missed opportunity for a potential naming rights sponsor.

Overall, uniform logos generated $61.9 million in media value and were the main source of value for both the league-level and team sponsors.

ESPN, Disney and the NFL will again produce an animated alt-cast, this time recreating the Dec. 9 Monday Night Football game between the Bengals and Cowboys in the world of the Simpsons. Bart will side with the Bengals and Homer will join the Cowboys in the virtual action that will be available on ESPN+ and Disney+ in addition to both the standard MNF broadcast and the ManningCast.

This follows last year’s debut of the concept with Toy Story Funday Football and will again leverage Sony’s Beyond Sports technology to blend data from the NFL Next Gen Stats sensors and Hawk-Eye optical tracking cameras into the live 3D rendering. That production received three Sports Emmys and set a Disney+ record for peak concurrent viewers of a live event.

The Simpsons creators have helped prepare the production, which will reimagine AT&T Stadium as Springfield’s Atoms Stadium. Bart and Homer will at times replace the animated NFL players, with Marge and Lisa conducting in-game interviews and Maggie flying the SkyCam.

Numerous Simpsons characters will make appearances — Krusty, Nelson, Milhouse and Ralph will be on the Bengals’ sideline while Carl, Barney, Lenny and Moe will align with the Cowboys — with key actors lending their voices to prerecorded skits. That includes Hank Azaria (Carl and Moe), Nancy Cartwright (Bart and Maggie), Dan Castellaneta (Homer), Julie Kavner (Marge) and Yeardley Smith (Lisa). The original theme song and other familiar audio will be heard.

Cartoon versions of ESPN talent will also be animated, such as Stephen A. Smith, Peyton and Eli Manning. Drew Carter, Mina Kimes and Dan Orlovsky will lead the broadcast while wearing Meta Quest headsets to immerse themselves into Springfield, just as ESPN’s NHL on-air commentators did for last spring’s Big City Greens Classic .

The Simpsons Funday Football will stream live or be available on demand in numerous international markets as well, including Mexico, Brazil, Australia, New Zealand and the Netherlands. Disney+ is the official streaming home of the Simpsons, which has aired more than 750 episodes across 35 seasons.

Check back later in the week for more from Joe Lemire on this innovative broadcast.

I caught up with sports venue architect David Manica late last week while he was making the five-hour drive from Oklahoma City back home to Overland Park, Kan. It’s a drive that Manica will make regularly during the next year, mainly because he and his firm are designing the Thunder’s new $950 million arena, and partly because there are no direct flights between K.C. and OKC, so the timing ends up roughly the same.

Manica, alongside architect of record TVS, was recently selected by the city of Oklahoma City over competitors Populous, Gensler and Overland Partners. Manica didn't bring a pre-conceived design to the final interviews -- a ploy that landed well.

“We wanted to come with our listening ears on,” he said. “We didn’t want to come with something created in a vacuum. It’s maybe the courageous thing to do. Architects might come with something to wow the client and then they fall in love with it,” but it turns out to be too expensive or unrealistic.

Manica doesn’t often bid on projects with an architect-of-record partner already secured -- read my profile of Manica and his firm , which explains their process -- but did in this case because he wanted to have a full-service bid response for the city, and because Manica and TVS have had a positive experience teaming together in Nashville on the Titans’ New Nissan Stadium. TVS has dallied with sports venue design during its history, but mostly designs other large public building types, like convention centers.

“A lot of it is just personality and attitudes -- they understand their role on the project, respect our role on the project,” Manica said. “No second guessing, just 100% support. It’s just a perfectly complementary working relationship.”

Manica’s small firm has wrapped up design work on Inter Miami’s Freedom Park, and while they’re still actively involved with the Bears’ new stadium pursuit, there was a window in which the firm could pursue the Thunder project. Manica instantly understood the potential of the project to affect the city in a different way compared to his projects in San Francisco, Las Vegas, Nashville and Miami (where there are multiple major pro sports teams).

“I wanted to work on buildings that make a difference to cities and that people love to go to,” he said, “and I can't think of a project that will have a bigger impact on a city than this one in Oklahoma City will.”

A design is expected by next summer, though there is no clear direction yet of what the new arena might look like. Manica Architecture held kickoff meetings with the city and team this week to discuss the pros and cons of Paycom Center, the venue that will be replaced. And the design team has begun its deep dive into OKC's history, culture and market, giving Manica and his passenger for the half-day drive home, Principal and Technical Director Will Hon, plenty to discuss.

The Yankees tonight are bringing the World Series back to the Bronx for the first time since 2009, and while YES Network won't be showing any games, the RSN is taking full advantage of the opportunity.

Social media is a big part of that YES strategy, with real-time analysis coming from the studio, similar to what the RSN did during the regular season during national games. “We want our best -- clips, analysis, sound bites, graphics, the things that we control the IP to -- we want that to be shared and posted and let people know that we are their source, their destination,” said Jared Boshnack, VP/production at YES Network. “Social media serves to amplify our coverage and also inform you.”

Thus far, the RSN has partnered with digital creator (and former Yankees employee) Alex Day, also known as the “The New York Sports Guy,” for postseason coverage. Day has been creating “person on the street” content, including chatting with actor Will Arnett from Dodger Stadium and interviewing former Yankees reliever Dellin Betances before Game 1.

YES Net has also expanded its usual half-hour pregame and hour-long post-game shows to 90 minutes each during the Fall Classic. “We’re giving ourselves an opportunity to explore and delve into every storyline imaginable,” said Boshnack. “We're trying to really account for everybody's point of view and make sure the expert analysis is covered from every angle.”

YES studio host Bob Lorenz and analysts Jack Curry, John Flaherty and Michael Kay were in studio during Games 1 and 2, with Meredith Marakovits and Joe Girardi on site at Dodger Stadium. Tonight in the Bronx, Lorenz, Curry and Flaherty will remain in the studio, with Marakovits, Kay and Paul O’Neill onsite in Yankee Stadium.

"We have the best involved,” said Boshnack, pointing out that talent has multiple World Series rings between them. “I can’t stress enough how cohesive our group is -- 162 games spread out over 180-plus days. ... That’s from talent, management, operations, everybody involved. We work together so closely all year long. We have a shorthand ability to communicate, yet understand when it's necessary to really lean in and bring the product out.”

The recent NCAA settlement regarding name, image, and likeness payments to college athletes represents a seismic shift in the financial structure of college sports. For the first time, schools will be able to directly compensate athletes through a revenue-sharing model, marking the end of the NCAA’s century-old system of amateurism. While this groundbreaking move offers much-needed financial equity for athletes, it also ushers in a new era of complexity that schools must prepare for. As we stand on the brink of this historic change, institutions need to adopt new structures and compliance measures to effectively navigate this uncharted territory.

$22 Million: The floor, not the ceiling

Under the new settlement, schools will set aside an annual pool of revenue — capped at approximately $22 million per institution — to be distributed among athletes. This $22 million comes from the school’s own revenue sources, including media rights, ticket sales, and merchandise, and creates a new pool of money on top of what athletes can still earn through third-party NIL deals with companies and collectives.

This dual-revenue stream creates a more comprehensive financial structure for athletes, where their compensation from the school is complemented by ongoing opportunities to sign  sponsorships  and endorsement deals. The cap represents what institutions will directly pay out, but the true earning potential for athletes could grow exponentially through continued partnerships with brands, collectives, and external businesses.

For athletes, this settlement is not just about the direct payments from schools; it signals a new era where their earnings are multifaceted and  scalable , offering financial opportunities that were previously unimaginable.

The need for structure and compliance

With great financial power comes great responsibility, and the NCAA’s new NIL ruling makes it clear that schools can no longer operate under the loose, unregulated systems that have characterized the NIL landscape thus far. The current infrastructure has little to no standardization, oversight, or structure, leading to schools and collectives operating in a legal gray area.

This lack of structure is unsustainable, especially now that schools will be directly responsible for compensating athletes. As government-regulated institutions, universities cannot afford to perpetuate this disorganized system without oversight or proper management. Schools must urgently establish a professional, standardized framework to manage this new responsibility, which includes developing the infrastructure necessary to pay multiple athletes multiple times per year in compliance with state and federal laws. This also involves aligning with the reporting rules and regulations set forth in the settlement, all while managing the increasing responsibilities of a college athletic program. Additionally, schools must ensure financial transparency and implement compliance systems to efficiently track payments and manage contracts securely, with a focus on protecting athletes’ privacy and sensitive information.

Furthermore, equipping players with tools and resources to navigate this new financial landscape — such as support for tax filing, financial planning, and saving for the future — is crucial. Without these critical structures in place, schools risk not only violating NCAA rules but also inadvertently  undercompensating  athletes, leading to potential legal challenges and damaging the trust that athletes place in their institutions.

The introduction of direct payments to athletes means schools will need to significantly upgrade their financial infrastructure and resources. Athletic departments must integrate financial management and literacy into their operations at a much higher level than before, or risk falling behind in this new era of college sports. Schools must rise to the occasion and adopt a professional, modernized financial infrastructure that ensures both the institutions and athletes thrive in this new era.

The role of collectives: A necessary evolution

While collectives have played a major role in the NIL space since their inception, their unregulated nature has led to inconsistencies and potential compliance issues. Moving forward, schools must establish clear guidelines for how they and collectives will coexist. The relationship between schools and these collectives must be formalized, ensuring that athletes benefit without creating conflicts or legal challenges. As NIL payments become more intertwined with the schools themselves, the days of loosely organized, donor-led collectives need to be over. 

The athlete standpoint: Covering all bases

From the athlete’s perspective, this new financial arrangement introduces a level of complexity that requires careful attention. College athletes are no longer just students; they’re businesses. They must understand the contracts they’re signing, the tax implications of their income, and how to best manage their newfound wealth. Schools have a responsibility to offer guidance, whether through financial literacy platforms, apps, legal support, or mentorship opportunities. The pressure is on institutions to ensure that athletes are equipped with the tools and resources they need to succeed, both on and off the field.

Navigating a new landscape

As schools implement these changes, they must also navigate the legal and ethical complexities of this new model. Ensuring compliance with NCAA rules and state laws will be a significant challenge, as will balancing the commercial interests of athletes with the educational priorities of institutions. Schools must also manage the expectations of athletes, coaches, alumni, and fans, all of whom have a stake in the success of this new system. Additionally, disparities in revenue distribution between high-profile sports like football and basketball and lower-revenue sports must be addressed, ensuring that all athletes benefit fairly from the new model.

Conclusion: A new era that demands action

The new NCAA NIL settlement is a historic moment in college sports, one that has the potential to reshape the financial and cultural landscape of athletics. But with this opportunity comes the responsibility for schools to adapt, creating robust financial infrastructure and compliance systems that ensure both transparency and fairness. The $22 million cap is just the beginning — schools must be prepared for this number to grow as the market evolves. In the meantime, clear operational frameworks, compliance systems, and athlete-focused resources are not just necessary — they’re critical. College sports have entered a new era, and institutions must rise to the challenge.

Michael Haddix Jr. is the CEO and founder of  Scout , a financial wellness platform for the NIL era, dedicated to providing personalized financial education, wealth management, tax preparation, and investment services through a tech-enabled mobile app.

• The PWHL, the six-team women’s hockey league that has played only one season, is opening itself up to expansion as early as next year, reports SBJ's Alex Silverman.

• Spurned in its initial attempt to permanently seal its media rights deals with NBCU and Amazon, the NBA filed a renewed motion with the New York Supreme Court today asking for a “much narrower sealing order" that includes “very limited redactions," while still hoping to keep escrow terms, annual fees and other propriety information private, writes SBJ's Tom Friend.

• Haslam Sports Group today unveiled District 46 at CrossCountry Mortgage Campus, a more than 16-acre development around the Browns’ existing practice facility and team HQ in Berea, Ohio, notes SBJ's Bret McCormick.

• NASCAR was listed today as being in talks to bring a race to the planned Qiddiya mega resort in Saudi Arabia toward the end of this decade, reports SBJ's Adam Stern.

• New Angel City FC co-owner Willow Bay said the NWSL’s existing salary cap rules are “discriminatory against teams that have a higher percentage of mothers” on their rosters but is optimistic that the league is willing to address the situation for future seasons, writes SBJ's Alex Silverman.

• Media buying agency GroupM announced it surpassed its pledge to double annual media spending in women’s sports advertising, and more than 20 brands signed on to invest in 2024 and onward, notes SBJ's Mollie Cahillane.

• The PGA Tour is proposing sweeping changes that could take effect by the 2026 PGA Tour season, reports SBJ's Josh Carpenter.