- The long-term outlook for sports technology investing continues to be positive, says Michael Proman, manager of the Scrum Sports & Entertainment Fund.
- Optimism among investors is being driven by the belief that the Federal Reserve Bank is going to start cutting interest rates soon, which could have a positive impact on the stock market and subsequently other markets.
- Proman is closely watching developments in sports technology investments such as The Golf League (TGL) and sports betting in Japan.
According to Proman, while 2024 is set to be a strong year for sports tech investments, developments in 2025 are also being closely watched. TGL and Japanese sports betting are high on his list.
TGL aims to revolutionize golf by reducing the number of holes, shortening the game time, and introducing a tech-heavy emphasis, such as swinging toward a computer-generated fairway. Proman believes such innovation could open up golf more to real-time sports betting.
In addition to TGL, sports betting in Japan is set to provide promising prospects. Although the activity is mostly illegal in Japan, recent developments like the approval for a casino to be built indicate a shift in the country’s stance. Moreover, sports betting through offshore websites available to Japanese consumers could be worth as much as $40 billion, according to estimates by the Ministry of Economy, Trade and Industry in Japan.
This potential surge in sports betting would align with the general trend in the US, where more states are opening up to the practice and could also help open up a promising market in Japan.
Proman expresses belief in broadcast personalization as another key area for growth, citing Amazon’s Thursday Night Football’s 20% year-over-year growth as a prime example of how fans are turning to streaming platforms that provide enhanced visuals. He also forecasts venue tech to be a popular investment category in the coming year, particularly with the anticipated opening of L.A. Clippers’ Intuit Dome.
In conclusion, Proman’s outlook on sports tech investment for the coming years is optimistic due to promising developments in TGL, sports betting, broadcast personalization, and venue tech.
