Blackstone Executive Builds Sports Investing Empire with Equity in All Five Major US Leagues

David Blitzer, a Blackstone executive, has built an empire of sports investments, owning equity in all five major men's sports leagues in the US. His interest in sports investing began after he realized he wasn't a good athlete, and he sees sports businesses as having "some of the best IP in the world." Blitzer's first sports investment was with Josh Harris in 2011, acquiring the Philadelphia 76ers for $280 million. He believes in the thesis of supply and demand, with a limited number of sports teams and increasing demand from ultrawealthy individuals and private equity firms.

Fox Corp, a leading media conglomerate, has expanded its sports portfolio with the acquisition of Mexican sports platform Caliente TV. The deal aims to bolster Fox's streaming services and attract more users to its offerings [1].

The acquisition includes plans to launch a new pay-TV and streaming service, complementing Fox's existing free ad-supported streaming service, Tubi. Together, these services will deliver over 3,000 hours of original sports content annually [1].

Carlos Martinez, a veteran media executive with experience at Turner, Discovery, and Fox, has been appointed executive vice president and managing director for Latin America. In his new role, Martinez will oversee Fox's operations and growth strategy across Mexico and Central America, including the integration of Caliente TV and the new platform launches [1].

The acquisition grants Fox a wide array of premium sports rights, including six top-tier Liga MX clubs, ten women's clubs, and rights to several major global competitions such as the UEFA Champions League, Concacaf Champions Cup, Coppa Italia, Ligue 1, Premier League, and FA Cup knockout competition [1].

Fox's move comes as streaming becomes the dominant way for viewers to watch TV, with Nielsen reporting that streaming had surpassed broadcast and cable TV viewing in the US for the first time in May [1].

Fox has also announced a new all-encompassing OTT platform, Fox One, which will host its news, entertainment, and local networks, as well as its sports networks FS1, FS2, Big Ten Network, and the Spanish-language Fox Deportes. This platform is set to launch later in 2025 ahead of the NFL season [1].

Meanwhile, rival media giant Disney is planning to establish a new OTT service, with Disney-owned sports pay-TV giant ESPN set to launch a direct-to-consumer (DTC) offering in the second half of 2025 [1].

References:
[1] https://www.sportcal.com/news/fox-boosts-sports-rights-with-caliente-tv-acquisition/
[2] https://www.businesswire.com/news/home/20240624826878/en/TMRW-Sports-Completes-Series-A-Investment-Round-Co-led-by-Dynasty-Equity-and-Connect-Ventures