Introduction: Athletes as Investors
The rise of athletes as venture capital (VC) investors shows a significant shift. It reflects how professional athletes leverage their wealth and influence beyond sports. Among the high-profile athletes that have established or joined investment firms are:
- LeBron James
- Lionel Messi
- Roger Federer
- Serena Williams
- Kevin Durant
- Cristiano Ronaldo
- Nico Rosberg
- Stephen Curry
- Carmelo Anthony
- Aaron Rodgers
- Alex Rodriguez
In the UK, an athlete-led firm, The Players Fund, has brought together over 60 elite athletes. These athletes include Ben Stokes, Jos Buttler, Jess Ennis-Hill, Stuart Broad, and Jofra Archer. Together, they have made over 300 investments so far.
These athletes often focus on industries aligned with their personal brands. Examples include sports tech, media, and health. These ventures allow athletes to diversify income streams, maintain relevance post-retirement, and use their platforms to promote portfolio companies. With the support of financial experts, athlete-led VC firms are growing globally, from the U.S. to Australia and the UK. This trend underscores a broader evolution. Athletes are not just endorsers but active participants. They are shaping industries through strategic investments.
This trend is also relevant in the Kingdom of Saudi Arabia (KSA). An important aspect of KSA’s Vision 2030 is that it aims to improve the quality of life of Saudis. As such, it promotes the practice of sports. Furthermore, KSA via the Public Investment Fund (PIF), has been investing heavily in the sports industry. This will likely result in a high number of well-known athletes in different sports disciplines. Hopefully, they will also be affluent.
Why do Athletes become Investors?
There are several reasons that lead athletes to become investors. Among them are the next:
Skewed income distribution: the top stars in each sport earn much more than the median athlete.
Short sports career span: due to physical and mental exhaustion.
To overcome the above limitations, athletes have several options. Depending on their earning level, they may choose to establish funds. They can also partner or hire personal wealth management teams to manage and deploy their capital.
But not many athletes have the resources, time, or financial literacy to actively jump into the investing world so aggressively.
As a result, firms within the VC and PE space have made efforts to involve athletes. They want athletes in their group of investors and partners. This helps athletes become better investors. They learn how to evaluate deals and meet the right people. They also find the funds, franchises, and other investments that suit their needs, interests, and budget.
Among the advantages that athletes bring to VC funds are their personal brands and networks. Additionally, if companies partner with athletes strategically focused in the verticals where they operate, they can provide awareness. They can also offer legitimacy beyond what a traditional investor could.
A role model: Serena Williams
Serena Williams is one of the sports icons, who has successfully transitioned from the field to the boardroom.
Serena Williams founded Serena Ventures in 2014. Her mission was to support founders from underrepresented groups. This includes women and people of color. Her firm has invested in over 85 companies, with 14 achieving unicorn status. The portfolio spans industries like consumer products, healthcare, and technology, emphasizing diversity—79% of founders are from underrepresented groups.
Saudi Arabia’s Sports Investment Landscape
PIF has become a global powerhouse in the sports industry. It leverages its vast resources to reshape the landscape of sports both domestically and internationally. Here are some of the most relevant investments owned or backed by PIF:
Surj Sports Investment
In 2023, PIF created SURJ Sports Investments. This is a sports investment company. It aims to accelerate the growth of the sports sector in Saudi Arabia and MENA.
Newcastle United F.C.
In 2021, PIF acquired the English Premier League club Newcastle United. This marked one of its first major forays into international football. The acquisition includes sponsorship deals with Saudi entities, like Saudia Airlines. It also involves Saudi Telecom Company. These efforts further integrate the club into Saudi Arabia’s broader sports strategy.
LIV Golf
PIF launched LIV Golf in 2021 as a direct competitor to the PGA Tour. The tournament offers lucrative prize money and guaranteed contracts. LIV Golf has disrupted the global golf hierarchy. It has attracted top-tier players. This solidifies Saudi Arabia’s influence in the sport.
Saudi Pro League Clubs
In 2023, PIF took ownership of four major Saudi Pro League clubs: Al-Nassr, Al-Hilal, Al-Ittihad, and Al-Ahli. These clubs have signed global stars like Cristiano Ronaldo, Neymar, and Karim Benzema. The deals are worth over $1 billion in wages for foreign players.
Tennis Partnerships
PIF has made significant investments in tennis, including partnerships with the ATP and WTA. In 2024, Riyadh hosted the WTA Finals for the first time, showcasing Saudi Arabia’s growing footprint in professional women’s tennis.
E-sports Investments
Through its subsidiary Savvy Games Group, PIF has positioned Saudi Arabia as a hub for esports. It hosts events like the Esports World Cup. It also acquires stakes in prominent gaming companies such as DAZN.
Opportunities for KSA Athletes in VC
Like in other parts of the world, KSA athletes can leverage their personal brands and prominence. This allows them to become key players in the burgeoning VC ecosystem. As a notable example, I highlight the Yashaa Group based in India with operations in Abu Dhabi. They have created the first sports VC fund ($75m) in the GCC. Notable investors include cricketers Shikhar Dhawan and AB de Villiers.
If you are a KSA athlete, I suggest considering this:
- Expand your network. Join Oqal, Riyadh Angels, etc to connect with other investors.
- Start angel investing (there are many platforms and ways to invest together with other angels).
- Initially make small investments, diversify.
- Consider joining a syndicate.
- Seek early stage startups, rather than less riskier investments (barbell strategy).
- Learn by yourself if you can.
- Engage actively with the founders/startups. It is a win-win opportunity.
- Find a mentor or advisor.
- Don’t follow a trend. Look for large addressable markets that are aligned with your knowledge or interests.
- Once you know what you are good at, seek to partner up with Saudi VC funds. Be sure you’re passionate about this. Consider partnering with Wa’ed Ventures or Aramco Ventures.
Conclusion: A New Era for Athlete-Investors in KSA
The potential for KSA athletes to lead in VC aligns with global trends where athletes leverage their wealth and influence to shape industries. Saudi Arabia’s robust sports investment landscape, driven by PIF, offers fertile ground for athletes to transition into VC roles.
Opportunities for KSA Athletes in VC
-KSA athletes can emulate global icons like Serena Williams,. They can leverage personal brands and networks to influence industries such as sports tech, media, and health.
– Early-stage angel investing platforms and partnerships with established funds can help athletes diversify income streams while gaining VC investment experience.
– Collaboration with local VC funds could provide mentorship, resources, and alignment with Saudi Arabia’s tech-driven startup ecosystem.
With Saudi Arabia’s growing sports ecosystem and emphasis on innovation, KSA athletes have a unique opportunity to become influential investors, shaping industries beyond their athletic careers.
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