New sports platform is letting fans buy in
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Digital capital-raising platform DealMaker launched a sports division dedicated to fan-led ownership Wednesday.
Why it matters: Fans don't have to be billionaires to invest in the teams they love.
What they're saying: "Every team or league is going to need to spend money on fan engagement," DealMaker CEO and co-founder Rebecca Kacaba tells Axios. "Most of the time you spend millions of dollars and hope to see the fans engage later to generate a return [on investment]."
- "With fan ownership, you generate a return at the outset because the fan invests and then they become more engaged with the brand."
How it works: DealMaker Sports allows professional sports teams, leagues, athletes and college athletic departments to raise money directly from the public.
- In turn, everyday fans may be offered direct stake, equity, and/or perks from teams that join the platform.
Zoom out: Community ownership has worked for decades in Europe.
- This includes over 100 professional clubs like Real Madrid, FC Bayern Munich and Manchester United.
- The Atlanta Braves, New York Knicks, New York Rangers and Green Bay Packers are the only publicly owned franchises among the four major U.S. sports.
Some crowdfunding sites in the U.S. service teams and athletes, including RallyUp, Chisos and GoFundMe, but DealMaker says it's the only company with a division focused solely on sports, featuring account managers who have executed sports deals.
Case in point: DealMaker has already led campaigns for the Green Bay Packers and the Oakland Ballers.
- USL team Westchester FC and the Virginia Beach Arena Project have also joined the platform.
The bottom line: With new pro sports leagues emerging, fans are being offered a seat in the owners' box.
