With sports teams selling for new record-setting $10 billion price tags, iCapital CEO Lawrence Calcano explained to InvestmentNews that his alternatives giant aims to bring sports team ownership opportunities to investors with net worths as low as $1 million.
“The earliest products we had on the platform were qualified purchaser products. But a lot of the product innovation that we're seeing in the last three to five years is making products available for people who are maybe accredited investors or qualified clients,” said Calcano. “We see a lot of interest on the RIA side right now for these [sports] investments.”
InvestmentNews interviewed Calcano following iCapital’s announcement this week of its multi-year sponsorship deal with U.S. Ski & Snowboard, which spans the Stifel U.S. Ski Team, the Hydro Flask U.S. Snowboard Team, and the Toyota U.S. Para Snowboard Team. iCapital’s name will appear on athlete uniforms as part of sponsorship expected to continue through the 2026 Winter Olympics in Italy.
This marks the first sports team sponsorship with iCapital, though it previously signed individual deals with golfers Will Zalatoris, Cameron Young, Lexi Thompson, and Lee Westwood as well as Swiss skier Stefan Rogentin. California-based RIA Jackson Square Capital notably had its logo worn by golfer Riley Lewis during this year’s U.S. Open major tournament in June.
“Skiing was a way to reach Europe in a more effective way than golf could, just given the affinity for skiing in Europe, and obviously the US Ski Team competes on a world stage,” said Calcano. “We think sports investments is an exciting theme that will be of interest on a global basis,” he added.
iCapital’s marketplace totals roughly $277 billion in alternative assets, including platform access to sports team investments through CAZ Investments and Marc Lasry’s Avenue Sports Fund. The SEC defines accredited investors as those with net worths over $1 million excluding their primary residence or individuals with annual income over $200,000.
“Historically, people have not had access to the ability to invest in teams and other sports assets,” said Calcano, who played college ice hockey at Holy Cross. “If you're not a billionaire, you just have not had a chance to play in these types of investments, and now people have a chance to play.”
CAZ Investments has a partnership with private equity giant Arctos to invest in teams across all five major North American sports leagues (MLB, NHL, NBA, MLS, and NFL). Avenue Sports Fund has invested in assets such as pickleball operator CityPickle, MLB’s Baltimore Orioles, English soccer’s Ipswich Town Football Club, and PGA Tour Enterprises, as well as the U.S. Sail GP team. The RIA Certuity invested in SailGP’s Italian team in June.
Guggenheim Partners CEO Mark Walter, who also owns several annuities and life insurance providers, recently finalized his deal to buy the NBA’s Los Angeles Lakers for a record $10 billion. Ares Management, which has stakes in the NFL’s Miami Dolphins and soccer club Inter Miami, announced in September that it was investing in the $40 billion RIA EP Wealth.
“My guess is that people are making these investments with a view towards making three times their money,” Calcano said of recent sports team investments. “Over time, investing in great brands has often been a very successful strategy. And I think this happens to be sports, but it's effectively investing in great brands where there's an opportunity to create more upside.”
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