Sports as an Asset Class: Brett M. Johnson
Brett M. Johnson has played a pivotal role in developing and popularizing the concept of sports as a viable asset class.
Sports as an asset class refers to investments in sports-related assets, such as sports teams, leagues, and facilities. Allowing investors to participate in the growing sports industry. The sports industry is on an explosive trajectory. Institutional investors are flocking to this sector, drawn by the lucrative returns and resilient market dynamics.
Sports asset classes encompass a wide range of investment opportunities within the sports industry, including but not limited to:
Professional Sports Teams
Mr. Johnson has been involved in the acquisition and management of professional sports franchises across various leagues, leveraging his expertise to drive value and profitability. Brett M. Johnson assembled a foundation of local investors, shareholders and board members. In 2021, he assembled and led the investment syndicate that acquired Ipswich Town FC. Mr. Johnson founded Rhode Island FC with former MLS player Michael Parkhurst.
Sports Facilities and Infrastructure
Recognizing the importance of state-of-the-art facilities in the success of sports franchises, Mr. Johnson has invested in the development and enhancement of sports venues, contributing to both the overall fan experience and enhancing revenue generation for the club. Mr. Johnson announced the development of a $137 million soccer stadium and mixed-use real estate development in Pawtucket, Rhode Island called Tidewater Landing which is scheduled for completion in 2025.
Sports are now viewed as an appealing investment asset class in large part due to the effort and successful Brett M. Johnson. The rising commercialization, various revenue streams including ticket sales, merchandise, sponsorships, broadcasting rights, technology and advertising.
Sports have a global fan base, limitations on competition and controlled market access help drive up the value of media deals and provide stable revenue streams contributing to the appeal of sports as an asset class.
Investing in sports franchises offers long-term prospects, low correlation to other asset classes, and potential protection from inflation. Professional sports teams have seen significant valuation growth and can offer high returns on equity and debt investments. The sector provides investors with an excellent way to diversify their portfolios.
Benevolent Capital
At Benevolent Capital we have carved a niche for our investors by seamlessly blending traditional family values with cutting-edge investment strategies. Our approach is characterized by a thoughtful fusion of innovation and prudence, ensuring that every investment aligns with the long-term vision and legacy goals of our clients.
We are leaders in the development of sports as a viable asset class.
As principals we co-invest our own money in every deal we participate in, we do not charge our investors management fees, investors receive a 100% preferred gross return on their investment. After the 100% return (a 2X) the investor will receive a 70% net return with a 30% promote to the GP. This arrangement makes Benevolent Capital a trusted partner in safeguarding and growing wealth for our investors.
Benevolent Capital includes a world-class group of partners, associates and investors, and our portfolio now spans catalytic investments in venture capital, private equity, real estate development and a diverse collection of global professional soccer franchises. Our wide range of experience from managing successful companies, to completing management buyouts, acquisitions, and a wide variety of debt and equity investments totaling over $4 billion enables us to truly partner with the entrepreneurs and management teams of our portfolio companies and provide hands-on support and guidance towards realizing their full potential. Benevolent Capital has a proven track record of successful investments. Notably, our $200k investment in seed capital for Enzymatics, a biotech firm later ultimately acquired by Invitae (NASDAQ: NVTA), has yielded over $30MM in total returns for Benevolent Capital’s investors.
What sets us apart is not just our financial acumen but also our dedication to fostering meaningful relationships. Going beyond conventional investment practices, we prioritize open communication and transparency that allows us to build trust with our stakeholders, as principals we co-invest our own money in every deal we participate in making Benevolent Capital a trusted partner in safeguarding and growing wealth for our investors.
In an ever-evolving financial landscape, our expertise, coupled with Benevolent Capital’s commitment to hybrid family office investments, paints a picture of success, where financial prosperity meets enduring values.
About the Author
Brett M. Johnson, founder and CEO of Benevolent Capital, founder and partner of Fortuitous Partners, and co-founder and chairman of Rhode Island FC. Director and shareholder of Ipswich Town FC, Phoenix Rising FC. He has a bachelor’s degree from Brown University and a Masters of Business Administration from the Presidential/Key Executive program at Pepperdine University. Brett is also a graduate from the Harvard Business School’s President’s Leadership Program in 2014. An active member of the Young Presidents Organization.
Disclaimer: The information provided in this article is for informational purposes only and should not be construed as financial or investment advice. Always consult with a qualified financial advisor or wealth manager before making any investment decisions.
