Private Sport’s Equity New Black Ownership Looks To Tap Into $51 Billion Market

CBx Vibe:Rich Spirit” Kendrick Lamar

By Sabrina Lynch

  • Private sports equity firm Dynasty is aiming to raise more than $1B to increase minority investments in sports teams
  • Private equity firms spent $51B on sports transactions in 2021

There’s a new private equity team in town with Black ownership at the forefront with Don Cornwell, Partner at PJT partners and Jonathan Nelson, Founder of Providence Equity Partners. Their new sports equity firm ‘Dynasty’ will specifically invest in professional teams across the world, along with increasing minority investments in sports teams, giving Black business leaders a one-up in a highly competitive industry. The firm is aiming to raise more than $1 billion for their fresh financial endeavor, having already achieved a first by making Cornwell the first Black co-owner of a sports-focused private equity fund.

Why This Matters: Springhill Productions, co-owned by LeBron James, was valued at $725 million and elevated ‘King James’ into billionaire status. Now, sports leagues are adjusting their rules to allow private equity firms to take a stake of the liquidity. Dynasty is just the first of a small wave of companies being built to close the racial finance gap, joining HomeCourt which is the first fund established to invest in NBA franchises. Even Arctos Sports Partners’ Fund has raised more than $4 billion to build a diverse sports portfolio.

Sports team ownership still remains overwhelmingly white, yes NFL, we’re looking at you. Out of the league’s 32 teams, only two have controlling ownership by a Person of Color. On the flip side, companies that specialize in sports entertainment are having a field day, just ask Michael Stahan who recently secured $50 million in funding along with his partner Tom Brady for their joint company Religion of Sports.

Situational Awareness: Billions of dollars are being poured into sports and sports related properties, from NFTs and athletes to league sponsorships and media rights. Black business leaders who are benefiting from huge private equity financial gains at the table are few and far between. Now more leeway is being given to People of Color to grow, and profit from stakes in sports teams.

CBx Vibe:Rich Spirit” Kendrick Lamar

CONTRIBUTOR

Sabrina Lynch

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