Standard Chartered has launched a new alternative fund focused on sports, now available to ultra-high-net-worth and high-net-worth clients of its Global Private Bank.
“With major sports leagues and teams seeking alternative capital financing options, the industry has seen a growing trend in sports investing as a new investment avenue, from franchise ownership to seeking earnings growth from bigger media broadcasting and sponsorship deals,” says Standard Chartered in an April 14 announcement.
According to Standard Chartered, the newly-launched fund will focus on the sports, media and entertainment sectors. It will be run by a “prominent global alternative investment manager”, says Standard Chartered, though the bank did not provide further details.
The steady, revenue-generating model of the sports industry has been gaining the interest of private investors, says the bank.
Broadcasting rights and sponsorship deals form a significant portion of revenue, and increased demand for sports coverage has driven up the cost of national broadcasting rights. Standard Chartered says the media industry has seen a growth in media contract value of 16%-17% over the past decade, with major sports leagues signing “record-breaking broadcasting deals”.
Standard Chartered is one of the first banks to launch this fund across its footprint. Samir Subberwal, global head of wealth solutions and chief client officer, says the bank has observed “strong growing interest” from its clients in alternative asset classes, such as sports investing.
See also: Trump meets Tiger Woods, golf execs as PGA Tour-Saudi deal looms
“The growing media industry is an impetus for us to act now. It is therefore timely to leverage the strong expertise of leading global fund managers to connect our high-net-worth clients to professionally managed solutions that provide access to hard-to-access opportunities,” he adds.
