Venture capital interest in sports is increasing as investors seek opportunities insulated from the AI boom. Some firms are betting that sports teams are less vulnerable to the rapid pace of AI development which has threatened software, legal, and financial industries.

Investors view legendary teams as scarce assets with predictable media-rights revenue, durable fan bases, and significant tax advantages for wealthy investors. Recent transactions include:

• Thrive Capital founder Josh Kushner acquiring stakes in the S.F. Giants and a $12.5B deal for the Lakers.
• Jeff Bezos participating in a consortium to buy a minority stake in Liverpool FC.
• Dragoneer Investment Group founder Marc Stad acquiring a controlling stake in the Timberwolves.
• A group led by Vinod Khosla acquiring the Seahawks.

Investors are also placing bets on niche, startup sports leagues such as the Professional Fighters League. While investing in new leagues requires less capital, it carries greater risks. Kate Clark of the Wall Street Journal notes there is no guarantee these leagues will build real fan bases, and concerns exist that shortening attention spans may make it harder to attract and retain audiences.

Left Lane Capital, led by Founder and CEO Harley Miller, is an early investor in Real American Freestyle, as well as the Pro Padel League, the Snow League, and League One Volleyball.