Democratizing Sports Asset Investment: The Evergreen Model's Potential to Reshape Retail Access in Private Equity

The sports asset class has long been a domain of institutional investors and ultra-high-net-worth individuals, with barriers to entry defined by high minimums, illiquidity, and opaque structures. However, the rise of the Evergreen model—a perpetual, open-ended investment vehicle—is reshaping this landscape. By enabling regular contributions, liquidity events, and fractional ownership, Evergreen funds are democratizing access to private markets, particularly in sports. Champion Venture Partners (CVP), a trailblazing firm co-founded by former NFL star Marques Colston and ex-MMA fighter Nick Edwards, exemplifies this shift. Their low-entry Champion Fund is bridging the gap for retail investors and athletes, offering exposure to high-potential off-market sports assets with a minimum investment of just $500 [1].

The Evergreen Model: A Paradigm Shift in Private Equity

Traditional private equity and venture capital require substantial capital, long lock-up periods, and complex due diligence, often excluding individual investors. Evergreen funds, however, operate as perpetual vehicles with continuous capital flows and periodic liquidity events. This structure addresses key pain points: capital drawdowns, vintage diversification, and the need for flexibility in dynamic markets [3]. For sports investments, where valuations are driven by media rights, fan engagement, and infrastructure, liquidity is critical. Evergreen funds allow investors to adjust their stakes in response to market shifts, a feature absent in traditional private equity [5].

Technological innovations like blockchain and tokenization further enhance accessibility. Fractional ownership of high-value assets—such as stadium real estate or team stakes—enables retail investors to participate in markets previously reserved for institutions [1]. Prominent firms like Apollo, Blackstone, and KKR have launched Evergreen products, signaling a broader industry trend toward democratization [1].

Champion Venture Partners: Pioneering Retail Access in Sports

CVP’s Champion Fund is a 40 Act interval fund with a Net Asset Value (NAV)-based structure, offering semi-annual liquidity events and transparent valuation reporting [4]. This model eliminates carried interest, ensuring that NAV growth directly benefits shareholders without performance fees [4]. The fund’s focus on growth-stage sports businesses—ticketing platforms, stadium infrastructure, media ventures, and direct team stakes—aligns with the sector’s high-growth potential. For instance, CVP has deployed capital into European football and ticketing ventures, generating approximately $100 million in portfolio value through equity stakes and enterprise growth [1].

The fund’s low barrier to entry ($500) is transformative for athletes and retail investors. Historically, athletes transitioning from their careers faced limited options for wealth-building, often relying on short-term endorsements or high-risk ventures. CVP’s approach provides a stable, diversified portfolio of sports assets, mitigating risk while capitalizing on the sector’s resilience. For example, the firm’s investments in real estate around stadiums and media platforms tap into recurring revenue streams, such as ticket sales and broadcasting rights [1].

Off-Market Sports Assets: High-Potential Opportunities

While specific performance metrics for CVP’s portfolio are not publicly disclosed, the broader sports asset class has demonstrated robust returns. For instance, ArctosPartners acquired a 12.5% stake in Paris Saint-Germain (PSG) for $4.3 billion in 2023, leveraging the club’s global brand and media deals [3]. Similarly, Ares Management invested $500 million in Chelsea FC, capitalizing on the English Premier League’s lucrative broadcasting contracts [3]. These examples underscore the appeal of sports franchises as both passion-driven and profit-oriented assets.

CVP’s strategy mirrors these trends by targeting off-market opportunities. For example, investments in ticketing platforms like SeatGeek or stadium infrastructure projects align with the sector’s $48.9 billion revenue CAGR (6.9%) from 2020 to 2025 [2]. Additionally, the firm’s focus on women’s sports—such as Sixth Street’s $125 million investment in Bay FC of the NWSL—highlights untapped growth in emerging markets [4].

Challenges and Considerations

Despite the Evergreen model’s advantages, challenges persist. Private investments often come with higher fees, reduced transparency, and liquidity constraints compared to public markets [2]. For instance, while CVP’s NAV-based structure offers semi-annual redemptions, retail investors must still navigate the risks of illiquid assets. Moreover, the success of sports-backed portfolios depends on factors like league popularity, regulatory changes (e.g., DOJ lawsuits against Live Nation), and macroeconomic trends [2].

Critics also question whether retail investors are adequately equipped to manage the complexities of private equity. However, CVP’s transparent reporting and focus on established brands—rather than speculative ventures—mitigate these concerns. By prioritizing stability and diversification, the firm aims to align with the risk profiles of everyday investors [1].

The Future of Sports Investment: A More Inclusive Landscape

The Evergreen model is not just a structural innovation—it’s a cultural shift. As private wealth migrates toward alternative assets, firms like CVP are redefining who can participate in the sports economy. By lowering entry barriers and leveraging technology, they are creating pathways for athletes, small businesses, and retail investors to build wealth through sports.

Conclusion

The democratization of sports asset investment is no longer a distant vision but an unfolding reality. Evergreen funds like CVP’s Champion Fund are proving that accessibility and profitability can coexist in private markets. While risks remain, the sector’s resilience, driven by media expansion and technological innovation, positions it as a compelling avenue for wealth-building. As the industry evolves, the challenge—and opportunity—lies in ensuring that these tools are wielded responsibly, empowering a new generation of investors to stake their claim in the global sports economy.

Source: [1] Marquez Colston And Nick Edwards' Champion Venture Partners [https://finance.yahoo.com/news/marquez-colston-nick-edwards-champion-224500943.html] [2] Sports Franchises in the US - Market Research Report [https://www.ibisworld.com/united-states/industry/sports-franchises/1628/] [3] Top private equity sports deals of 2023 [https://pitchbook.com/news/articles/top-private-equity-sports-deals-2023] [4] Deal Dynamics in 3 Private Equity Sports Transactions [https://www.chronograph.pe/deal-dynamics-in-3-private-equity-sports-transactions/] [5] Unlocking the Future: The Democratization of Private Markets [https://friendswealthmanagement.com/unlocking-the-future-the-democratization-of-private-markets-and-the-rise-of-evergreen-funds/]