Investment Considerations

From Variety: Netflix and Amazon now produce over half of their content internationally, an inflection point from traditional U.S.-centric production to a more diversified and growing global approach. In an essential presentation as part of the Future Content Trends Report at ContentAmericas on Tuesday, Guy Bisson from Ampere Analysis showed the undulating shifts in the global #TV and #streaming industry and outlined the key drivers for change in 2024. The Decline in U.S. Commissioning and Production A discernible downturn in U.S. commissioning and production activity has been evident since the latter half of 2022, predating notable industry disruptions such as the strikes. Full year comparison of the number of scripted shows produced for 2023 against the average of the previous two years shows a 38% decline. This trend stems from a combination of factors, including a retreat by streaming services from their previously aggressive content investment strategies. It will result in fewer shows coming through over the next 18 months. This pull-back correlates with the growing insistence from investors for profitability, shifting streamers’ business tactics. Streamers Tighten Belts and Look Abroad Reflecting a strategic diversification, there’s a marked shift towards international content production. Netflix and Amazon now generate over half of their content outside the U.S., underscoring a decreasing reliance on American production ecosystems. This global pivot is not merely a shift in geography but may signal a broadening of narrative scopes and audience engagement strategies. Initiated by Netflix’s ‘Great Correction’ in 1Q 2022, streamers are unlikely to keep increasing investment at previously seen rates. It is still increasing though. Ampere Analysis forecasts Global investment change to grow upwards by 30% across 2023-2028; with Central and South America seeing increased investment along with Asia and MENA & SSA, whereas a leveling off and slight decline is expected in #Europe and the U.S. The current downturn in scripted production has not seen a compensatory rise in unscripted series orders, the picture painted by Guy Bisson showed. The stagnation of scripted highlights a complex content demand landscape that cannot be swiftly pivoted or addressed through simple genre substitutions, challenging previous assumptions about content fungibility in response to production constraints. The Road Ahead: Diversification and Investment Shifts The industry stands at a crossroads, with investment in North American content plateauing while regions such as Asia, the Middle East, and Sub-Saharan Africa are poised for the highest growth. This trifecta of #Hollywood strikes, a streamlining of streaming costs, and a strategic realignment towards new regional priorities heralds an era of global diversification in content production, Bisson noted.

While most financial institutions scrambled to survive the 2025 "permacrisis," three firms didn't just adapt—they thrived. Mastercard (#1), DBS (#2), and Progressive (#6) now top our Future Readiness Index by turning regulatory headwinds into growth engines. BACKGROUND: Global GDP crawling at 2.7-3.3% and fragmented regulatory landscapes have created true "permacrisis" conditions. Most institutions delayed decisions. The winners did the opposite. Future-ready organizations demonstrate two counterintuitive characteristics: First, they master technological patience. DBS didn't rush AI implementation. CEO Piyush Gupta orchestrated a "house-wide spring clean" with frontline staff rewriting workflows before adding cloud services. The result? Sub-second account openings and products rolling out across six markets in weeks. Second, they turn compliance from burden to advantage. Progressive transformed actuarial science into a real-time sensing network years before competitors. The payoff was five million new policies and 21% premium growth in 2024. But here’s the most striking insight: Each took a different path. Mastercard exploded their payment rail into bite-sized public APIs—powering transactions from China to Ghana while maintaining "five-nines" uptime. DBS compressed internal complexity until change became routine, completely rewiring the bank from within. Progressive gambled early on Snapshot devices, collecting billions of miles of driving data. By 2024, they could auto-detect crashes and dispatch help in milliseconds. As our research at IMD shows: "Future readiness is not a single playbook but a shared mindset." Three principles that set these leaders apart: 1. Build platforms that welcome future possibility. 2. Build cores that absorb future shock. 3. Treat every regulatory jolt as design input rather than drag. In 2025's uncertain landscape, you won't just survive the next discontinuity … you'll define it.

📰 Deloitte's 2025 sports industry outlook is out (download 👇 )and here are the highlights: ✅ Private Equity Exits: 2025 is expected to mark the first significant wave of PE exits in the sports industry, particularly in European football. This will lead to a critical evaluation of returns and investment strategies, potentially reshaping ownership structures and capital deployment in the sector. ✅Diversification Beyond Football: Investors are increasingly looking at digitally native and emerging sports such as pickleball, snowboarding, and esports. Disruptor leagues are gaining attention due to their scalable media opportunities and innovative sponsorship models. ✅Women's Sports: This segment is expected to be one of the fastest-growing in the industry, with rising team valuations and increased brand partnerships. ✅Minority Stakes: As valuations for premium properties rise, minority stakes are becoming more attractive. They offer investors exposure to coveted assets and allow rightsholders to bring in strategic partners or high-profile individuals. ✅Professionalization: The industry is seeing greater sophistication in M&A processes, emphasizing thorough due diligence and well-defined investment rationales. ✅Near-Market Opportunities: There's growing interest in businesses serving the sports ecosystem, driven by expanding markets and consolidation opportunities. ✅'Barbell Effect': The market is polarizing towards two extremes - premium, established sports properties and high-growth emerging sports. This divergence will likely lead to more investor consortiums and tactical investments in premium assets. The sports industry remains a dynamic and resilient asset class, evolving beyond traditional models and offering diverse opportunities for global investors in 2025 and beyond.

The impact of poor customer service has a ripple effect that isn't always captured by businesses. The metaphorical spreadsheet is good at recognising the cost of a service: staff, technology, logistics, training, recruitment etc. But when it is not operating properly, the cost to a business is not just reduced revenue. Consequential loss is the other business you could have won, but didn't. This is never captured because it's not known, but exists. Take United Airlines for example. They left me stranded in Vancouver a few months ago because I missed a connection. I had to pay $385 to stay in a hotel before catching another flight. They refused to pay for the room, instead they offered $200 off my next flight. And sent lots of patronising emails about valuing my business. I am flying to New York in a few weeks and United offered one of the best flight options. I chose not to use them, because of my experience in Vancouver. I am also flying to New York in January, and won't use them then either. Nor will I consider them when I most likely return to Chicago next June as well. That's about £1500 of consequential loss, business they were unaware of. This is the cost of poor customer service, and your own business faces the same challenge if you think that under-investing in this area is worth the risk. #CustomerService #JustPayForMyHotel #ISRC

A new investable category is emerging... 𝐖𝐞'𝐯𝐞 𝐬𝐞𝐞𝐧 𝟑 𝐬𝐢𝐠𝐧𝐢𝐟𝐢𝐜𝐚𝐧𝐭 𝐜𝐚𝐩𝐢𝐭𝐚𝐥 𝐢𝐧𝐟𝐮𝐬𝐢𝐨𝐧𝐬 𝐢𝐧𝐭𝐨 𝐜𝐫𝐞𝐚𝐭𝐨𝐫-𝐟𝐨𝐜𝐮𝐬𝐞𝐝 𝐬𝐩𝐨𝐫𝐭𝐬 𝐦𝐞𝐝𝐢𝐚 𝐜𝐨𝐦𝐩𝐚𝐧𝐢𝐞𝐬 𝐨𝐯𝐞𝐫 𝐭𝐡𝐞 𝐥𝐚𝐬𝐭 𝟏𝟓 𝐦𝐨𝐧𝐭𝐡𝐬: • Good Good Golf (influencer golfers) raised $45M • Dude Perfect (trick shot channel) sold a majority stake for $100M+ And most interesting of all... Major League Baseball (MLB) took a minority stake in Jomboy Media, which showcases three key themes: 1. A New Investment Precedent 2. The Creator Economy Gets Institutionalized 3. Defense is the New Offense for Legacy Media Companies 𝐖𝐡𝐚𝐭'𝐬 𝐭𝐡𝐞 𝐛𝐥𝐮𝐞𝐩𝐫𝐢𝐧𝐭 𝐠𝐨𝐢𝐧𝐠 𝐟𝐨𝐫𝐰𝐚𝐫𝐝? • Personality > Production: Fans want relatable, not polished. • Community > Corporation: Loyalty built through shared experience. • Narrative > Highlights: It’s not just the home run, it’s the drama behind it. I dive much deeper in today's briefing: ⤵️ https://lnkd.in/eHazgjPB

Competition for sports assets is heating up, but... One question I’ve been thinking about lately is "What real value do investors bring to sports teams beyond capital?" Sure, liquidity matters. Teams also need resources to grow, modernize, and compete. But as capital becomes more commoditized and checks become easier to write, the question becomes: What actually differentiates one investor from another? The most impactful investors bring more than money. They bring strategic leverage, capabilities that elevate the value of a team, league, or property well beyond the initial investment. Here are a few ways they can do that: ➀ Media exposure: Access to distribution channels, storytelling capabilities, or strategic partnerships that amplify brand visibility and reach. ➁ Real estate expertise: Knowledge of large-scale development, stadium districts, and mixed-use projects that can transform teams into anchors of entire communities. ➂ Technological expertise: Bringing innovation in data, fan engagement, infrastructure, or performance tools that improve how teams operate and grow. ➃ Operational expertise: Experience scaling complex businesses, optimizing revenue streams, and building sustainable organizational structures. In an ecosystem where capital might become increasingly abundant, strategic value is the true differentiator. And the investors who bring it will shape the future of the sports ownership landscape. Subscribe to the Vetted Sports weekly newsletter to get the latest industry news, trends, and updates 📩 👇 www.vettedsports.com

Rethinking Entry-Level Hiring: Focus on Potential, Not Just Experience (What your workforce really needs from you) Experience isn't born overnight. It doesn’t materialize from thin air. In today's market, leadership isn’t about demanding prior experience. It’s about nurturing future talent. Here’s how forward-thinking organizations are shifting their approach: 1️⃣ Recognize the Potential Gap Demanding years of experience for entry-level roles creates a barrier. ➜ Acknowledge the current hiring paradox. ➜ Understand the frustration of fresh graduates. ➜ Focus on the skills that can be developed. Open doors, don't build walls. 2️⃣ Value Attitude and Adaptability Years on a résumé don’t guarantee success. Mindset does. ➜ Prioritize a candidate’s willingness to learn. ➜ Look for adaptability in a changing market. ➜ See beyond the paper and into the person. Potential outshines past experience. 3️⃣ Invest in Mentorship and Training Every expert was once a beginner. Build the foundation. ➜ Provide structured mentorship programs. ➜ Offer continuous training and development. ➜ Create opportunities for hands-on learning. Growth is a two-way investment. 4️⃣ Foster an Inclusive Hiring Culture Opportunity shouldn’t be a privilege. It should be a standard. ➜ Break down traditional hiring biases. ➜ Value diverse backgrounds and perspectives. ➜ Create a level playing field for all candidates. Inclusion breeds innovation. 5️⃣ Prioritize Skill-Building Skills are the currency of the future. Invest wisely. ➜ Focus on transferable skills over specific experience. ➜ Identify core competencies and develop them. ➜ Create a culture of continuous learning. Skills grow with opportunity. 6️⃣ Focus on Long-Term Success Short-term experience vs. long-term growth. Choose wisely. ➜ Build a pipeline of future leaders. ➜ Invest in the longevity of your workforce. ➜ Cultivate talent for sustainable success. Future-proof your team. 7️⃣ Leadership is Investing, Not Just Expecting True leadership isn’t about demanding expertise. It’s about building it. ➜ Absorb the initial training burden. ➜ Offer guidance, not just requirements. ➜ Build an environment where potential thrives. Your team will remember the organization that invested in them. Guide them forward. Build their future. Because leadership isn’t about finding perfect candidates. It’s about creating them. Image credit: George Stern

Energising discussions at SuperReturn in Monaco this month, where I had the privilege of sharing insights on sports investing, alongside exploring transformative trends in private credit markets. 🌟 Here's a deeper dive into the key insights that emerged: 𝗦𝗽𝗼𝗿𝘁𝘀 𝗜𝗻𝘃𝗲𝘀𝘁𝗶𝗻𝗴 𝗟𝗮𝗻𝗱𝘀𝗰𝗮𝗽𝗲 🏆 𝗟𝗲𝗮𝗴𝘂𝗲 𝗦𝘁𝗿𝘂𝗰𝘁𝘂𝗿𝗲 𝗘𝘃𝗼𝗹𝘂𝘁𝗶𝗼𝗻 1. The NFL's franchise model demonstrates how salary caps and revenue sharing create predictable investment returns 2. European football's promotion/relegation system, whilst riskier, offers unique value creation opportunities through performance improvement and media rights optimisation 3. Major leagues are increasingly focused on global expansion, with the NBA and F1 leading successful international market penetration 𝗘𝗺𝗲𝗿𝗴𝗶𝗻𝗴 𝗠𝗮𝗿𝗸𝗲𝘁 𝗗𝘆𝗻𝗮𝗺𝗶𝗰𝘀 1. Pickleball's remarkable growth trajectory showcases how rapidly new sports can scale with proper infrastructure and investment 2. Women's sports experiencing unprecedented growth, with the NWSL attracting significant capital 3. Esports and digital engagement platforms still continuing their push to create new monetisation channels, particularly in younger demographic segments 𝗜𝗻𝘃𝗲𝘀𝘁𝗺𝗲𝗻𝘁 𝗔𝗽𝗽𝗿𝗼𝗮𝗰𝗵 𝗧𝗿𝗮𝗻𝘀𝗳𝗼𝗿𝗺𝗮𝘁𝗶𝗼𝗻 1. Private equity firms moving beyond pure ownership to value-add operational improvements 2. Growing focus on data analytics for both performance optimisation and fan engagement monetisation 3. Multi-club ownership models gaining traction, enabling operational synergies and talent development pipelines 𝗣𝗿𝗶𝘃𝗮𝘁𝗲 𝗖𝗿𝗲𝗱𝗶𝘁 𝗠𝗮𝗿𝗸𝗲𝘁 𝗘𝘃𝗼𝗹𝘂𝘁𝗶𝗼𝗻 📈 𝗠𝗮𝗿𝗸𝗲𝘁 𝗠𝗮𝘁𝘂𝗿𝗮𝘁𝗶𝗼𝗻 1. Private credit continues its substantial expansion globally, with direct lending becoming a core allocation for institutional investors 2. Lenders showing increased sophistication in deal structures, with covenant-lite terms being balanced against stronger security packages 3. Growing emphasis on sector specialisation, particularly in technology, healthcare, and sustainable infrastructure 𝗜𝗻𝗻𝗼𝘃𝗮𝘁𝗶𝗼𝗻 𝗶𝗻 𝗟𝗲𝗻𝗱𝗶𝗻𝗴 𝗦𝘁𝗿𝘂𝗰𝘁𝘂𝗿𝗲𝘀 1. Hybrid instruments combining traditional debt with equity-like features gaining popularity 2. ESG-linked credit facilities providing pricing incentives for sustainability performance 3. Australian private debt market emerging as a compelling opportunity, driven by banking sector consolidation 𝗥𝗶𝘀𝗸 𝗠𝗮𝗻𝗮𝗴𝗲𝗺𝗲𝗻𝘁 𝗘𝘃𝗼𝗹𝘂𝘁𝗶𝗼𝗻 1. Enhanced focus on portfolio diversification across sectors and geographies 2. Development of secondary market trading platforms improving liquidity options 3. Innovative fund structures, including evergreen models, providing more flexible capital deployment options Continued in first comment #𝗦𝗽𝗼𝗿𝘁𝘀𝗕𝘂𝘀𝗶𝗻𝗲𝘀𝘀 #𝗣𝗿𝗶𝘃𝗮𝘁𝗲𝗖𝗿𝗲𝗱𝗶𝘁 #𝗜𝗻𝘃𝗲𝘀𝘁𝗺𝗲𝗻𝘁 #𝗙𝗶𝗻𝗮𝗻𝗰𝗲 #𝗦𝘂𝗽𝗲𝗿𝗥𝗲𝘁𝘂𝗿𝗻𝟮𝟬𝟮𝟰 #𝗠𝗼𝗻𝗮𝗰𝗼𝗖𝗼𝗻𝗳𝗲𝗿𝗲𝗻𝗰𝗲

Qatar Sports Investments (QSI), majority owner of Champions League winners Paris Saint-Germain, has signed a strategic investment agreement with Kevin Durant, one of the NBA’s most influential figures both on and off the court 🏀💼 👉 Durant, through his media and investment platform Boardroom (co-founded with Rich Kleiman), has acquired a direct minority stake in PSG, building on his earlier involvement via Arctos Partners, also a minority shareholder in the club. 👉 As part of the partnership, Boardroom and QSI will collaborate on a range of commercial, investment, and content initiatives. 👉 Durant will support the club’s wider growth ambitions: co-developing branded kit and original media, advising on US and international market strategy, working with PSG’s charitable foundation. 👉 Perhaps most notably he will also contribute to the club’s multi-sport strategy, including possible plans for basketball. Why It Matters 🤔 This feels like a calculated move that has huge benefits for both sides. Sovereign wealth funds in the Middle East are increasingly seeking exposure to US-based sport assets (as we saw SURJ Sports Investment develop via a partnership with Enfield Investment Partners in January). For QSI, the partnership provides them with a different strategic bridge into getting that access 🇺🇸 Beyond access, Durant also brings cultural leverage, content firepower, and built-in audience reach. Through Boardroom, they now have a media partner with deep U.S. roots and credibility among the next generation of fans and who can both influence and amplify the narrative 📢 For Durant, while he’s been an active investor for some time, this deal puts sovereign capital behind him and a major European club beside him. The deal gives him a seat at the top table of sport-business strategy and the chance to shape something at significant scale, starting, most likely, with a PSG-backed franchise in the frequently-discussed NBA Europe project 🏀 Paris would be the crown jewel of that expansion. The city already hosts regular-season NBA games, has a passionate basketball fanbase, and sits at the intersection of sport, fashion, and global culture 🇫🇷🗼