Understanding Liquidity in the Sports Economy

The information herein is not complete and is subject to change. We may not sell securities of the Champion Fund until the Fund's registration statement filed with the Securities and Exchange Commission is effective.  This website is not an offer to sell these securities and is not soliciting an offer to buy these securities in any state where the offer or sale is not permitted.

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One of the most common misconceptions about sports investing is that it's inherently illiquid. And while it’s true that many sports-related assets are privately held and long-dated, the picture is far more nuanced.

The reality is: liquidity in the sports economy exists on a spectrum. And the right structure can make even traditionally illiquid markets accessible—with discipline and transparency.

This article explains what liquidity means in private sports investing, how it differs across asset types, and how interval funds like Champion Fund are designed to offer structured access to a dynamic market.

Defining Liquidity in Private Markets

Liquidity is often misunderstood. In public markets, it’s synonymous with speed—you can buy or sell a stock in seconds. But in private markets, liquidity is not about speed. It’s about structure.

The right question isn’t “Can I sell today?” It’s: “Under what conditions can I redeem my position?”

In private sports investing, liquidity depends on several factors:

• The type of asset (e.g., real estate vs. venture)

• The maturity of the holding

• The fund structure

• The redemption mechanisms in place

Liquidity Across the Sports Value Chain

Using the Champion Fund’s SPMI framework, here’s how liquidity is generally expected to map across each vertical:

• Sports Real Estate & Infrastructure

  • Examples: stadiums, training facilities, mixed-use developments

  • Liquidity Profile: Low to moderate. Long-duration, but often cash-flowing or refinanceable

• Mid-Cap Private Equity

  • Examples: roll-ups of sports apparel brands, venue tech, youth sports platforms

  • Liquidity Profile: Moderate. Typically sold via sponsor exits, secondary sales, or recapitalizations

• Venture-Backed Startups

  • Examples: NIL platforms, athlete healthtech, fan engagement apps

  • Liquidity Profile: Low. Early-stage companies with binary exit paths; dependent on M&A or IPO

• Minority Stakes in Teams/Leagues

  • Examples: passive ownership in MLS, WNBA, or emerging leagues

  • Liquidity Profile: Low to moderate. Typically scarce and appreciated over time, but highly illiquid

• Strategic Fund Allocations

  • Examples: commitments to established sector-specific PE funds

  • Liquidity Profile: Depends on underlying manager structure; usually low, but institutionally managed

This variation highlights why structure matters. Without a thoughtful framework, investors could be overexposed to long-duration assets without optionality.

How Interval Funds Provide Structured Liquidity

Champion Fund operates as an interval fund—offering semi-annual redemption windows, subject to a set percentage of total fund NAV (expected to be 5%). This allows investors to request redemptions at a pre-announced schedule, based on the latest NAV pricing.

Here’s how it works:

• Redemption Process: Investors submit requests during designated periods

• Redemption Limits: Fulfilled up to a certain NAV threshold; pro rata if oversubscribed

• NAV Basis: Redemptions occur at the current Net Asset Value—no discounting or markups

This model balances the need for investor access with the portfolio’s long-term strategy.

Importantly: liquidity is not guaranteed. It is designed, scheduled, and capped to protect the fund’s overall performance while still offering more optionality than traditional private equity or venture funds.

The Advantages of Structured Liquidity

1. Reduces Timing Risk: Investors don’t have to rely on uncertain exit events to access capital.

2. Supports Strategic Flexibility: Investors can adjust exposure based on their own timelines, not just fund wind-downs.

3. Reinforces Transparency: NAV-based pricing ensures that redemptions are tied to actual portfolio performance—not markups.

4. Protects All Shareholders: Redemption caps ensure that no single investor can force liquidation of long-term positions.

In a category like sports, where underlying assets are diverse and long-dated, this balance is essential.

Why Liquidity Design Matters in Sports

The growth of the sports economy has brought in new investors—many of whom are used to having more visibility and optionality in their portfolios. But until recently, sports investing required full commitment: long lockups, no redemptions, and minimal reporting.

Interval fund design changes that:

• It offers transparency and access without compromising portfolio integrity

• It enables participation from a broader base of investors—not just institutions

• It supports sustainable growth in an emerging asset class by setting expectations and boundaries

Champion Fund’s structure was intentionally built to reflect these principles.

Closing Thought

Liquidity in private markets isn’t binary—it’s engineered. In the sports economy, where assets vary widely in duration and cash flow profile, that engineering is essential.

Interval funds don’t promise instant access. But they do provide a roadmap—a structure designed to honor both the opportunity and the investor.