Team Insight

8 • Team Insight ~ May/June 2024 teaminsightmag.com B oosted by the healthy rebound in game play post-pandemic, emerg- ing digital technologies and bigger pay-to-play opportunities, investor sentiment appears to be picking up in the team sports space — and it shows no signs of slowing down. e trend is evident in the November sale of Marucci Sports to Fox Factory Holding, best known for their Fox Racing Shox brand of off-road cycling suspension components, at a healthy EBITDA multiple of approxi- mately 10.5x; the recently-completed initial public offering (IPO) of Wilson-parent Amer Sports; and rumored IPOs being ex- plored by Varsity Brands, the parent of BSN Sports and Varsity Spirit; cap maker New Era Cap; and licensed sports powerhouse Fanatics. And hitting closest to home in the team dealer business, private-equity (PE) deals have likewise picked up, as evidenced by the Augusta Sportswear/Founder Sport Group acquisition by PE firm Platinum Equity ear- lier this year. Even more recently is the sale of one of the few remaining full-line sporting goods retailers in America, Hibbett/City Gear, to JD Sports Fashion. In announcing the late April acqusition – scheduled to close in the second half of 2024 – Anthony Crudele, chairman of the board of Hibbett, said, "e transaction with JD Sports will create immediate, certain and substantial value for Hibbett stockholders while ensuring that our brands are well-positioned to continue to serve the customers and communities that have always been the central focus of Hibbett's business." Added aid Régis Schultz, CEO of JD Sports: "We're thrilled to acquire Hibbett / City Gear, combining two of the most re- spected athletic retail brands in the United States, as we continue to strategically expand our global multi-brand platform." ose statements certainly sum up the allure of sports-related brands and retailers and it basically comes down to the fact that team sports and their suppliers are seen as a solid investment in uncertain economic times. e increasing investor interest in old- school dealers and suppliers comes as a recovery in play from the pandemic offers another example of the resiliency of team sports. It also comes as a gusher of money has been heading toward technology-en- abled start-ups that are making sports overall easier to join and train for, safer to play, more enjoyable to watch and easier to profit from. Growing Investor Interest Keith Bank, CEO and founder of KB Partners, an early-stage venture firm based in Highland Park, IL, tells Team Insight that seven or eight years ago his firm was one of the few focused on investments "at this intersection of sports and tech," but he now sees about 30 boutiques taking a similar approach. "e space has exploded," says Bank. "e categories have exploded between NFTs and NIL, connected fitness and all the blockchain-stuff related to ticketing. All the AI that's been brought into a lot of soware applications. All the wearable technology for measuring player load and injury risks, and looking at speed, velocity and power; and all the things to make broadcasts more 'PE' NOW MEANS 'PRIVATE EQUITY' Special Report: Investors turn bullish on the team sports business — and that's changing the game. By Tom Ryan TEAM TRENDS

• Cover