TLDR:
- OneTeam Partners, the commercial venture created by the NFLPA and MLBPA, is considering launching a $75 million fund to invest in early-stage businesses supporting athletes.
- The fund, called OneTeam Ventures, will target a portfolio of about 12 companies with an average investment of $5 million, collecting a 2.5% annual management fee on capital and a 20% performance fee on returns above a benchmark.
OneTeam Partners is exploring the possibility of establishing a $75 million fund to invest in early-stage businesses that support athletes. The group, founded in 2019 by the NFLPA and MLBPA, aims to deploy the money in ways that support its mission of helping athletes maximize the value of their intellectual property. The venture fund, named OneTeam Ventures, is anticipated to target approximately 12 companies with an average investment of around $5 million.
The fund will operate by collecting a 2.5% annual management fee on capital and a 20% performance fee on returns exceeding a designated benchmark. The ownership and fees will be divided between OneTeam and a general partner, who could be an established sports investor or an investor new to the sports sector seeking exposure.
OneTeam Partners has previously invested directly from its balance sheet or through special purpose vehicles (SPVs). These approaches had some limitations, leading the group to consider the establishment of OneTeam Ventures. CEO Sean Sansiveri highlighted the value OneTeam brings to the table and expressed the company’s evaluation of the fund’s potential.
Through its existing commercial arrangements, OneTeam has secured equity-in-kind deals with companies like Fanatics and Bally’s, amounting to over $100 million in current value. The group has also made investments in companies like Overtime and Toldright, while passing on opportunities from organizations such as DraftKings, Just Women’s Sports, and Uber due to constraints in cash and infrastructure. OneTeam’s core mission remains centered around assisting athletes in deriving maximum value from their intellectual property.
