From Locker Rooms to Boardrooms: The Same Rule Decides Who Wins

The Mythical 1% and the Revenue Rule

Let me start with this:

I’ve lost count of how many times I’ve heard,

“We just need 1% of this $80B market…”

It’s a comforting story. A shortcut to make a pitch deck look big and exciting.
But in sports? It’s dead on arrival.

You don’t magically “get” a slice of TAM because it exists. Sports is not an open buffet — it’s a maze of relationships, politics, silos, and legacy behavior. You claw for distribution, earn access, and fight for retention.

And here’s the kicker: even if you do get in the door, you don’t stay unless you drive revenue. Especially in places like college athletics where budgets are BIGGER than ever BUT tighter than ever.

No matter what you’re building — recruiting platforms, fan engagement tools, athlete support services — if you can’t tie your product to revenue, you’re a nice-to-have. And nice-to-haves get cut.

The Investing Lens

This is why we don’t just look for “big markets.” What me and my team look for:

• Founders with real entry points into their market.

• Products that drive measurable ROI for customers.

• Models that stick — because retention is the compounding engine.

The “1% of TAM” shortcut kills capital.
We invest in companies with an unfair advantage in getting into — and staying in — the game.

Why This Matters Now

The sports industry is flush with capital.

• $51B invested in global sports assets in 2023 (PitchBook)

• $485B global sports market in 2024, projected to reach $860B by 2033

• Yet… only ~1% of that deal value went into sports tech last year

That gap is the opportunity. But closing it won’t come from companies chasing unicorn headlines. It will come from elephants — disciplined, customer-first companies that scale intentionally and deliver value long before they raise the next round.

And here’s how we’re seeing it play out not just in the tech space, but in the real world of sports headlines:

• ESPN trades equity for NFL Media rights — proving that in sports, access and distribution can be worth more than cash.

• WNBA expansion & Finals format change — growth is coming from proven ROI and audience demand, not speculative market grabs.

• Travis Hunter’s two-way NFL preseason debut — like a multi-revenue-line founder, versatility creates outsized value.

• Community Shield rights move from ITV to TNT Sports — market entry and retention are driven by control of distribution channels.

• Scottie Scheffler’s Open win — a masterclass in “elephant” consistency, outlasting hype cycles with disciplined performance.

The Takeaways — For Investors and Founders

1. Access beats TAM math. Winning in sports tech is about relationships and market entry, not market size slides.

2. Revenue is the ultimate filter. If your product doesn’t make or save your customer money, you won’t last.

3. Elephants win more often. Lean, profitable, and value-driven beats flashy, over-capitalized, and hype-chasing.

4. Capital can be creative. Private credit, structured upside, and non-dilutive paths can fuel growth without cutting up the cap table every 12 months.

5. Retention is the multiplier. Winning once is hard. Staying in is harder. That’s where compounding happens.