More Athletes Transition to Owners

It was announced that Formula One driver Lewis Hamilton has joined the ownership group for the NFL’s Denver Broncos. Hamilton, seven-time Formula One title winner and record holder for most F1 race wins, acquired an interest in the ownership group that recently purchased the Broncos and becomes the latest in a number of athletes and entertainers to expand their brand into mogul status by becoming an owner of a sports franchise.

In our June 2, 2022, blog post “When Athletes Transition to Moguls,” we examined LeBron James expanding his personal brand to business mogul in part by way of the “invest in what you know” mentality across a number of commercial avenues. When it comes to sports—and the business of sports—athletes are uniquely positioned to capitalize on what they learn during their playing careers. Athletes gain as much knowledge about franchise operations, ownership, and the commercial side of sports as they learn about playing their sport, health, and body. 

For some athletes, it is about making a sound investment in something they know and understand to help preserve the earnings from their playing career. For others, the investment is a way for athletes to continue the passion for what they love and feed their natural competitive nature. Regardless, it is imperative that the athletes and entertainers have sophisticated and experienced advisors around them to help counsel and protect their interests as they look to expand from personal brand to global business mogul.

In recent years, there have been a number of athletes and entertainers transition to investors, owners, and moguls—here are some notable ones:

• Marshawn Lynch, former NFL running back for the Seattle Seahawks and Oakland Raiders, and Grammy Award-winning artist Macklemore joined the ownership group of the NHL’s Seattle Kraken as minority investors.
• NHL Hall of Famer Wayne Gretzky, NBA Hall of Famer and Brooklyn Nets Head Coach Steve Nash, and professional golfer Dustin Johnson joined Brooklyn Nets Owner Joe Tsai as part owners of the National Lacrosse League’s expansion franchise, Las Vegas Desert Dogs.
• Dwyane Wade, former Miami Heat great, purchased a minority ownership stake in the NBA’s Utah Jazz where he has reportedly quickly become an impact investor by actively mentoring Jazz star Donovan Mitchell.
• Kevin Durant, current Brooklyn Nets star, purchased a 5% stake (with a deferred option to purchase another 5% at a later date) in MLS club Philadelphia Union in 2020 and, in 2022, purchased a minority interest in NJ/NY Gotham FC of the National Women’s Soccer League (NWSL) through Thirty Five Ventures (35V), Durant’s company co-founded with business partner Rich Kleiman.
• Renee Montgomery, former player for the Atlanta Dream of the WNBA, became the first former WNBA player owner and executive of a WNBA franchise when she was named as part of the investor group approved to purchase the team in February 2022.
• Patrick Mahomes, Super Bowl Champion and quarterback for the Kansas City Chiefs, purchased a minority interest in the ownership group of MLB’s Kansas City Royals after signing his $503 million dollar contract extension. It’s safe to say Mahomes has some basic knowledge of baseball since he was a pro prospect while playing baseball in college and his father, Pat Mahomes, played 11 seasons in Major League Baseball.
• Tennis legends and sisters, Venus Williams and Serena Williams, joined a star-studded ownership group of the NFL’s Miami Dolphins in 2009 when they became the first Black female minority owners in the NFL. Other famous minority owners of the Dolphins include musicians Jimmy Buffett, Gloria and Emilio Estefan, Fergie and Marc Anthony.
• Serena Williams also joined 14 former United States Women’s National Team (USWNT) players and several other celebrities and entertainers as minority investors in the ownership group of the NWSL expansion franchise Angel City FC. The former USWNT players in the ownership group are Mia Hamm, Abby Wambach, Julie Foudy, Lauren Holiday, Shannon Boxx, Rachel Buehler, Amanda Cromwell, Joy Fawcett, Tisha Venturini Hoch, Angela Hucles, Shannon MacMillan, Saskia Webber, Lorrie Fair Allen, and Ronnie Fair Sullins.
• Michael Jordan became the first former NBA player to become a majority owner of an NBA franchise in 2010 when his $275 million purchase of the Charlotte Hornets (at the time, the Charlotte Bobcats) was approved by the NBA.
• Alex Rodriguez, former MLB player, was part of the ownership group that purchased the NBA’s Minnesota Timberwolves and the WNBA’s Minnesota Lynx after failed attempts to buy MLB’s New York Mets.
• David Beckham, former football/soccer player and global marketing star, is part of the ownership group for Inter Miami of the MLS. Beckham is also part owner of Project 92 Limited—alongside fellow members of Manchester United Football Club’s legendary “Class of ‘92”, Nicky Butt, Ryan Giggs, Gary Neville, Phil Neville, and Paul Scholes—which purchased English Football League (EFL) League Two club Salford City F.C. in 2014 when it was still competing outside the top four divisions (non-League) of English football.
• LeBron James, as mentioned previously in our blog post, has a minority ownership stake in Fenway Sports Group which owns Liverpool FC, Fenway Park, the Boston Red Sox, part of Roush Fenway Racing, and the Pittsburgh Penguins.
• James Harden, NBA player currently with the Philadelphia 76ers, owns a 5% stake of the MLS’ Houston Dynamo and NWSL’s Houston Dash alongside fellow part owner, former boxing champ, Oscar De La Hoya.
• Denver Broncos quarterback Russell Wilson, Baseball Hall of Famer Ken Griffey Jr., and musicians Ciara and Macklemore are all part of the ownership group of the Seattle Sounders of the MLS.
• Zlatan Ibrahimovic, global football/soccer star, purchased part of the Swedish football club Hammarby IF in 2019.
• Magic Johnson, NBA Hall of Famer with the LA Lakers, is part of the investor group that purchased MLB’s Los Angeles Dodgers in 2012.
• Actors Ryan Reynolds and Rob McElhenney, through their company RR McReynolds Company LLC, completed the takeover of Welsh football club Wrexham A.F.C.—which currently plays in the English National League, the fifth tier of the English football league pyramid—in February 2021.