Nov 2, 2026, 7:10 PM ETConference Presentation, Panel, Fireside Chat

The Business of Sports: When Capital and Competition Converge | Asia Summit 2026

The discussion took place at the 13th annual Milken Institute Asia Summit, themed "Leading with Intelligence."
The panel, titled "The Business of Sports: When Capital and Competition Converge," focused on the intersection of media, technology, and investment in global sports.
Moderated by Sharanjit Lail (Chancellor, Bath Spa University), the session featured experts from Formula 1, media/tech, venture capital, and professional athletics.

Audience Diversification: Formula 1 (F1) demographics have shifted from a narrow, hardcore fanbase to a global audience where 46% of fans are female, including significant younger generations.
Consumption Habits: Traditional long-form broadcast viewing (2+ hours) is declining; audiences now prefer short-form highlights (5 minutes) or social media snapshots (e.g., Instagram).
Media Ecosystem Evolution: The media landscape has transitioned from linear pay-TV to a fragmented ecosystem of streamers (Apple, Amazon, Google/YouTube) and short-form platforms (TikTok), removing shelf-space constraints.
Betting Integration: Sports betting and prediction markets have been fully democratized and legalized in the US, with platforms like DraftKings and Calshi creating new revenue streams and engaging new demographics (e.g., "Calschi" fans).

Women's Sports Valuation: Investment in women's sports has shifted from charity to high-growth business; Angel City FC's 2020 expansion fee was $1M, while subsequent fees reached $220M within five years.
Revenue Milestones: The Valkyries (WNBA) generated $80 million in revenue in their first year, primarily through sell-out ticket sales and media deals, not philanthropy.
First-Milestone Sponsorships: Angel City secured the first-ever seven-figure front-of-kit deal (>$1M/year) in women's professional sports in 2021.
Athlete Ownership: Athletes are evolving into major capital allocators, seeking equity stakes and ownership in teams (e.g., LeBron James, Tom Brady) rather than just endorsement deals.
College Sports Restructuring: Smash Capital is targeting the US college sports sector for investment to transform currently loss-making athletic departments into profitable, revenue-generating entities.

AI as a Disruptor: Artificial intelligence is rapidly lowering barriers to entry for video production (e.g., Higgsfield, C-Stage), allowing high-quality films to be generated in minutes, threatening traditional media and entertainment industries.
Sports as an "Anti-AI" Asset: Live sports are considered the last remaining protected entertainment vector because the value derives from authentic human competition, which AI cannot replicate without rendering it irrelevant.
Operational Efficiency: Smaller teams (e.g., Haas F1) are leveraging AI to leapfrog resource-rich competitors by optimizing processes, reducing engineering time from weeks to minutes.
Health & Performance Tech: AI is being deployed to predict and prevent athlete injuries (e.g., Achilles strains), with teams prioritizing technology to extend careers and maintain roster health.
Data Authenticity: The "Dead Internet Theory" highlights a shift toward "provably human" networks; sports teams possess valuable, verified data sets of real humans (via ticketing, addresses, arena attendance) that can form the basis of future decentralized social platforms.

Financial Fair Play: F1 has tightened budget cap regulations and closed exclusions to reduce the spending discrepancy between the smallest and largest teams (previously a 3x gap).
Competitive Balance: While money is a necessity to compete, it does not guarantee success; human elements (team chemistry, coaching, character) remain the deciding factors in championship outcomes.
Salary Cap Debate: Panels discussed the efficacy of salary caps (like the NFL) in creating parity and preventing perpetual dominance by single entities (e.g., PSG in French football, Bayern Munich in Germany).
Corruption Concerns: The discussion acknowledged rising cynicism due to corruption scandals (e.g., Manchester City, FIFA) but emphasized that transparency and strict regulation are essential to maintaining fan trust.

Projections for Women's Sports: Alexis Ohanian predicts dozens of billion-dollar women's sports teams will exist within five years, with a potential female F1 champion in the near future.
Global Expansion: F1 aims to expand its footprint to Africa within five years and increase international participation of engineers and drivers beyond European dominance.
Tech Allocation: Athletes and investors are increasingly redirecting capital toward AI and frontier tech startups, viewing sports as a stable refuge while tech sectors evolve.
Future of Media Rights: The panel expects college sports in the US to undergo a "very substantial restructuring" to maximize leverage and monetize fractionalized rights, driven by the importance of these programs in developing Olympic athletes.
Demographic Shifts: The average age of major league sports fans (currently in the 60s) will drop as digital natives reshape consumption habits, necessitating new storytelling formats for niche sports.

Ayo Soun (Haas F1 Team Principal): Emphasized that F1's success relies on balancing high-tech innovation with simplified fan experiences and emotional storytelling (e.g., via Netflix).
Kevin Meyer (TikTok CEO, Candles Media): Noted that while AI disrupts film and TV, sports act as a "refuge" for investment and will likely see net positive job creation in ancillary sectors.
Alexis Ohanian (Co-founder, Reddit; Angel City): Stressed that women's sports require the same profit-focused mindset as tech, rejecting the "charity" narrative; cited his wife's initial skepticism as motivation to build billion-dollar infrastructure.
Tristan Thompson (NBA Player; Investor): Highlighted the "brotherhood" aspect of athlete investment and the critical role of AI in health preservation for top-tier talent.