Capital Allocators – Inside the Institutional Investment Industry [REPLAY] Ian Charles & Doc O'Connor – Investing in Sports Teams at Arctos Sports Partners (Capital Allocators, EP.225)
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Feb 10, 2025 
Ian Charles and Doc O’Connor, co-founders of Arctos Sports Partners, discuss their groundbreaking approach to investing in minority stakes of professional sports teams. They dive into the lucrative investment landscape, spotlighting their recent success with MLB and NBA franchises. The duo shares insights on due diligence, the significance of 'coopetition' in ownership, and transformative trends like sports betting. They also reflect on personal growth, habits that foster success, and the importance of relationships in their careers.
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League Approval Process
- Leagues have strict vetting processes for owners, including minority stakeholders, to protect their reputation.
- This creates a high barrier to entry and exclusivity in sports ownership.
Sourcing Opportunities
- Arctos leverages a data platform and proactive origination, modeled after early private equity secondaries, to find opportunities.
- Their 'Arctos Insights' unit provides resources to owners and executives, positioning them as preferred partners.
Due Diligence Process
- Evaluate the league, club, and platform assets, considering league-level economics as a shared beta factor.
- Conduct thorough due diligence like any direct investment, incorporating probabilistic thinking and wide variations in outcomes.