Emerging markets take center stage at Sportico's Invest in Sports 2024 event

A few weeks ago, Sportico gathered the who's who of sports investing in New York to discuss the current capital rush into the sports industry. Speakers included the likes of Michele Kang, Marc Lasry, David Rubenstein, as well as Saudi's SRJ's CEO Danny Townsend. The Invest in Sports 2024 conference also notably put emerging markets, and Africa, in the spotlight through a panel conversation featuring Cheick Sanankoua of Omega Sports Holding, Alex Saratsis of Octagon, and Kojo Annan of A10, offering a global outlook on investment opportunities in sports.

You can watch the full panel here.

The three panelists had a common message: the talent pool for the best sports teams and leagues will come from outside of the U.S. in the coming years, and significant investments are needed for these talents to be developed. Here are three key takeaways:

Redefining Emerging Markets

Cheick Sanankoua challenged the traditional geographic-centric view of emerging markets. He pointed to the revival of the Parisian basketball scene as an example of an emerging market. Alex Saratsis echoed this sentiment, highlighting the dynamic sports landscape in the Middle East as another illustration of this concept. By any metric, countries like France, Saudi Arabia, or the UAE are not developing economies; these countries, however, are witnessing the emergence of new sports dynamics that investors should seize.

The Necessity of Patient Capital

Sanankoua emphasized that investing in emerging sports properties required a different approach than traditional private equity allows. He argued that investing in sports in Africa is a long-term commitment, potentially spanning two decades. This perspective aligns with the patient capital model, where investors are willing to forgo immediate returns for long-term value creation and greater social impact. Family offices, with their more flexible investment horizons, were identified as potential key players in this space. This insight is particularly relevant for African sports entities seeking sustainable growth and committed partners that can support this endeavor.Storytelling:

The Power of Narrative

Alex Saratsis highlighted the crucial role of storytelling in driving interest and investment in emerging markets. He drew parallels with the success of women's sports, which has gained significant traction through compelling narratives of athletes like Alex Morgan, Angel Reese, and Caitlin Clark. In that sense, investing in content production and distribution ventures can be an avenue considered by investors with shorter horizons. To illustrate this point, Kojo Annan spelled out the vision of his new venture, A10, a lifestyle and media company dedicated to spreading stories around African talent.