The recent rule change allowing private equity firms to own up to 10% of NFL teams has opened new avenues for investment in the sports industry.
Keen to learn about the highest performing franchise strategies, we turn to Matrix to learn from similar opportunities.
The Challenge: Extracting signal from noise
There is no shortage of public data related to past sports team investments. With a simple question: “What are five value creation strategies successfully employed by publicly traded sports teams?”, we had Hebbia pull over 80 filings from Manchester United, MSG (e.g., New York Rangers, Knicks), the Atlanta Braves, and more – easily days worth of analysis for a private equity associate.
Matrix: A Step-by-Step Breakdown
1. Our Work: Just a simple prompt. We type one straightforward question, and Matrix pulls in publicly available sports filings that have both strategic insights and financial outcomes.
2. Building Structure. We are able to use Hebbia data types — such as Select — to tag outcomes and associated strategies categorically. This allows us to measure quantifiable links from originally unstructured data.
3. Incremental Context. We use Hebbia’s Agent to add additional context into our Matrix. For instance, “What strategies drove revenue growth?” or “How would you summarize overall business performance?”. Hebbia automatically adds these columns to the Matrix, leveraging best-in-class prompting from 1,000+ expert-written prompts, as well as a proprietary prompt generator.
4. Synthesizing Insights. Finally, Hebbia’s Agent takes the wealth of knowledge summarized in Matrix and produces a digestible solution, complete with document-specific citations:
- Leverage Playoff Appearances: The Knicks capitalized on playoff games, which generated $128 million in revenue, averaging $8.5 million per game during the playoff period.
- Expand Premium Offerings: The Rangers introduced new suite products, leading to record suite revenues and a substantial change in the mix of ticket products sold.
- E-commerce and Digital Engagement: Manchester United plc nearly doubled e-commerce sales with a 73% traffic increase, supported by a 38% rise in digital interactions.
- Diversify Sponsorship Portfolio: Madison Square Garden Sports Corp. targeted sports betting and blockchain industries, exceeding pre-pandemic sponsorship levels.
- Increase Venue Utilization: Optimize events to boost venue usage; new renovations, fan engagement, and sponsorships led the Atlanta Braves to 93% of ticket capacity sold and a #4 ranking in MLB average attendance.
5. The Outcome: Validated and Actionable Insights. Immediately, we have five proven strategies from prior sports investments. We can now build a Matrix to identify similar opportunities in the NFL, using proprietary research or data available on the web.
Have an idea for a bespoke question that Matrix can answer? Reach out to support@hebbia.ai.
Note: Nothing in the newsletter constitutes professional or investing advice