By Simon Evans

Three areas where I think we can expect to see continued, significant growth in the soccer market:

𝟭. 𝗦𝘁𝗮𝗱𝗶𝘂𝗺 𝗜𝗻𝗳𝗿𝗮𝘀𝘁𝗿𝘂𝗰𝘁𝘂𝗿𝗲. We know that MLS Next Pro with the backing of Hometown Soccer Holdings and KKR have serious plans for moving MLS development teams into secondary or tertiary markets and creating them/rebranding them as new clubs. Many of these clubs will need stadiums building. As will independent clubs moving into MLSNP. Most will be small-scale - offering possibilities for firms working with 𝗺𝗼𝗱𝘂𝗹𝗮𝗿 𝗼𝗽𝘁𝗶𝗼𝗻𝘀. USL has plans for a new top tier D1 league (USL Premier) and that requires bigger and better stadiums (see Detroit and OKC). In both cases there is major work for architects and designers, construction firms, stadium tech providers and more.

𝟮. 𝗧𝗵𝗲 𝗦𝗼𝗰𝗰𝗲𝗿 '𝗘𝘅𝗽𝗲𝗿𝗶𝗲𝗻𝗰𝗲 𝗘𝗰𝗼𝗻𝗼𝗺𝘆'. I wrote in last week's newsletter that Soccer IRL is the USP for domestic North American soccer. But that need for community and experience provides many opportunities. 𝗖𝗿𝗲𝗮𝘁𝗶𝗻𝗴, 𝗯𝘂𝗶𝗹𝗱𝗶𝗻𝗴 𝗮𝗻𝗱 𝗼𝗽𝗲𝗿𝗮𝘁𝗶𝗻𝗴 'fan fests' and other large scale events. Spaces such as bars and restaurants and clubs designed for soccer (these are springing up across the country). People in the music/entertainment space helping to put together these experiences. Then there is the whole lifestyle/fashion element of this which is worthy of broader investigation in itself. None of this is traditional fan engagement - its somewhere around the music-festival, pop-up event space. But there are lots of opportunities out there for people with the knowledge and skills.

𝟯. 𝗦𝗽𝗲𝗰𝗶𝗮𝗹𝗶𝘇𝗲𝗱 𝗔𝗱𝘃𝗶𝘀𝗼𝗿𝘆 𝗦𝗲𝗿𝘃𝗶𝗰𝗲𝘀 𝗳𝗼𝗿 𝗣𝗼𝗿𝘁𝗳𝗼𝗹𝗶𝗼 𝗜𝗻𝘃𝗲𝘀𝘁𝗺𝗲𝗻𝘁𝘀. The MCO model (City Football Group, Red Bull, etc) is about operational control — shared scouting, transfer strategy, coaching philosophy across clubs but what we are increasingly seeing is a Portfolio-LP strategy, sometimes, but not exclusively, with the opposite instinct — 𝗰𝗮𝗽𝗶𝘁𝗮𝗹 𝘀𝗽𝗿𝗲𝗮𝗱 𝗮𝗰𝗿𝗼𝘀𝘀 𝗺𝗮𝗻𝘆 𝗰𝗹𝘂𝗯𝘀, deliberately without getting deeply involved on the operational side. Diversification reduces the exposure to risk from single-club volatility (one bad season/relegation/manager change doesn't sink the whole position). On the positive side, simultaneous exposure to different growth curves at once — domestic/international clubs, big/small clubs, mens/women's soccer all compounding on different timelines is a familiar approach taken from other areas of investment. But to do it smartly requires 𝗰𝗼𝗺𝗽𝗹𝗲𝘅, 𝗼𝗻𝗴𝗼𝗶𝗻𝗴 𝗮𝗱𝘃𝗶𝘀𝗼𝗿𝘆 𝘄𝗼𝗿𝗸.

These aren't the only three areas of growth of course but they are three that stand out to me at the moment and that we will be exploring in more depth at The Soccer Business in the coming weeks.