What RIAs Need to Know About Allocating to Sports
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Client interest in alternative investments has never been higher—and sports is increasingly part of the conversation.
From team ownership headlines to rising institutional capital flows, the sports economy is capturing attention across the wealth management landscape. But for registered investment advisors (RIAs), turning that interest into structured participation requires more than excitement. It requires education, process, and the right vehicle.
This article outlines the key considerations for RIAs evaluating sports exposure on behalf of their clients—and how structures like interval funds are making the category more accessible, transparent, and compliant with fiduciary obligations.
First, What’s Driving Client Demand?
Across demographics, clients are seeking greater exposure to alternatives—and sports checks several key boxes:
Tangible assets with real-world impact
Cultural and generational resonance
Non-correlated exposure to traditional markets
A growing private market ecosystem backed by institutional interest
The demand isn’t limited to ultra-high-net-worth clients. Increasingly, accredited and non-accredited investors alike are asking how they can access the value they help create—as fans, former athletes, entrepreneurs, and cultural contributors.
Common Barriers for RIAs
While interest is rising, RIAs often face friction in evaluating sports-aligned investments:
High Minimums & Lockups: Many direct sports deals or PE funds require $250K+ commitments, multi-year lockups, and capital calls—unsuitable for most clients.
Opaque Valuations: Without NAV pricing or consistent reporting, it’s difficult to measure performance or model exposure in a diversified portfolio.
Lack of Portfolio Role Clarity: Is it growth equity? Is it thematic? Is it real estate? Without structure, it’s hard to allocate appropriately.
Regulatory Scrutiny: RIAs must align exposure to suitability, risk tolerance, and long-term financial plans—requiring documentation and compliance alignment.
What Makes Sports Investable—Now
Thanks to regulatory innovation and structural design, sports is evolving into an asset class with the characteristics advisors expect from institutional-grade alternatives.
Key enablers include:
40 Act Fund Structures: Interval funds registered under the Investment Company Act of 1940 offer defined liquidity windows, audited financials, board oversight, and client-friendly accessibility.
NAV-Based Pricing: Funds like Champion Fund calculate NAV each business day, allowing for clear entry and redemption values—unlike mark-to-model or waterfall-driven funds.
Diversified Allocation: Rather than rely on single-deal risk, modern sports funds allocate across a broad cross-section of the ecosystem: real estate, operating companies, venture, media, and more.
Redemption Windows: Semi-annual redemptions (subject to limits) provide optionality without forcing short-termism.
How It Fits in the Portfolio
Champion Fund is structured to complement a broader alternatives allocation. While RIAs must determine client suitability, many view sports as a thematic satellite position or a diversified sleeve within a multi-strategy alternatives bucket.
Potential considerations:
Return Profile: Long-duration capital appreciation across multiple verticals
Risk Profile: Blended exposure across early- and late-stage assets
Time Horizon: Designed for 5+ year allocations, with periodic redemption optionality
Liquidity Profile: Semi-annual, NAV-based redemptions (not guaranteed, subject to caps)
By operating within a regulated, evergreen framework, the fund supports allocation conversations without introducing fund-specific complexity.
Talking Points for Client Conversations
RIAs navigating conversations around sports investing can frame the opportunity with clarity:
“This is not about owning a team—it’s about accessing a $3T+ global economy through a diversified fund.”
“The fund is structured for periodic liquidity and priced at NAV, giving you visibility and transparency.”
“We’re not betting on a single athlete or trend. This is a portfolio of professionally sourced private market assets in sports.”
“It fits within your alternatives allocation, but unlike traditional PE, it has no capital calls or carried interest.”
These talking points reinforce the importance of structure, discipline, and transparency—core to the advisor-client relationship.
What RIAs Should Look For
When evaluating sports-aligned fund opportunities, RIAs may consider:
Is the vehicle regulated (e.g., 40 Act)?
Is there consistent NAV calculation and reporting?
Are redemptions scheduled and structured?
Does the strategy offer sector diversification within sports?
Are fees aligned with investor outcomes (e.g., no carry)?
Is there a repeatable, professional allocation process?
Champion Fund was designed with these questions in mind—from our interval fund structure to our index-based allocation model (SPMI), quarterly reporting, and independent oversight.
Closing Thought
The sports economy is more than a passion—it’s a structured, maturing market that’s becoming investable at scale. For RIAs, that means a new opportunity to deliver exposure that aligns with both cultural relevance and capital discipline.
With the right structure, advisors can bring sports into the portfolio with confidence—and without compromising on fiduciary rigor.
