The Liquidity Problem in Sports — and How The Champion Fund Is Addressing It

For advisors managing client portfolios, this illiquidity is not an abstract concern. Clients have liquidity events. Portfolios need rebalancing. The historical structure of sports investing has made it simply incompatible with how most advisors manage allocations, regardless of conviction on the thesis.

Why Asset-Level Illiquidity Is Permanent — and Why That Is Part of the Point

Sports assets themselves will remain illiquid. That is partly a feature, not a bug. The illiquidity premium — the additional return investors receive for accepting an asset that cannot be rapidly converted to cash — is real and contributes to the historical return profile of the asset class. Eliminating illiquidity at the asset level would change the return profile.

The opportunity is not to make the assets liquid. It is to build a structure around them that provides investors with more liquidity than the assets themselves offer — without destroying the illiquidity premium in the process.

The 40 Act Solution

The Champion Fund's interval fund structure achieves this balance. The fund holds a managed portfolio across multiple categories and geographies, which creates more portfolio-level liquidity than any single illiquid asset. On top of this, the structure obligates the Fund to make semi-annual repurchase offers — 5% of outstanding Shares at NAV, each February and August.† The obligation to make the offer is not the fund's discretionary choice; it is a requirement of the fund's registration under the Investment Company Act of 1940, overseen by the SEC.

For advisors, the practical effect is transformative. Sports goes from an unmanageable, unplannable allocation to one with structured, predictable liquidity windows. The position is not perfectly liquid — it should not be. But it is manageable, plannable, and compatible with standard portfolio construction.

† The Fund's first repurchase offer is scheduled for August 2027.

This content is for informational and educational purposes only and does not constitute investment advice or an offer to buy or sell any security. Past performance is not indicative of future results. All investments involve risk, including the potential loss of principal. Please read The Champion Fund's prospectus carefully before investing.