Source: Fortune
Summary
Marques Colston, former NFL player, and Nick Edwards, a former mixed martial artist, have launched the Champion Fund, an investment fund that allows anyone to buy into sports for as little as $500. The fund is designed to give regular people a stake in the sports industry, which has grown to be worth close to $500 billion. The fund is structured as an interval fund, holding private companies and assets, and is valued at “fair value” using estimates approved by the fund’s board. The fund charges a 2.9% management fee, with total annual expenses of 5.75%. The founders aim to make the fund accessible to the average sports lover.
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The numbers tell one story.
The sports industry has grown to be worth close to $500 billion, with the average NFL team valued at $7 billion. Private equity firms have started to invest in minority stakes in professional teams. Marques Colston and Nick Edwards are trying to give regular people a stake in the industry with the Champion Fund. The fund charges high fees and has a complex structure, but the founders claim it’s designed to be friendly to the average sports lover. The fund’s valuation method is subjective and may be seen as “fluffy”. The founders are confident in their vision, but the fund’s illiquidity and high fees may be a concern for investors.
The sports industry is a lucrative market, and the Champion Fund is trying to tap into it by offering a unique investment opportunity. However, the fund’s structure and fees may raise eyebrows among investors.
Author: Evan Null
