Monarch: A New Playbook for Sports Investment
Monarch, a new investment fund, is charting a course distinct from traditional venture capital in the world of sports. Instead of spreading investments thinly across numerous startups, Monarch concentrates its capital in a select group of teams and leagues, actively participating in their operations. This strategy is described as applying “venture-like markets” principles with the “growth equity or private equity-like” approach to risk management.
According to founder Brenda Nortman, Monarch doesn’t simply provide funding; it partners with controlling owners, offering significant operational support. The primary aim is to guide teams towards financial stability – achieving breakeven or profitability in core operations – thereby maximizing their potential as media revenue increases.
Monarch’s focus isn’t limited to a single sport. The fund seeks opportunities in established sports formats with proven audiences, identifying those with “no product-market risk.” Nortman frames this by asking, “is this a sport people like to watch on their computer or television?” While acknowledging the popularity of participatory sports like pickleball, Monarch prioritizes those that translate into compelling spectator events.
currently invested in four “football” clubs, Monarch is also exploring opportunities in women’s basketball, golf, and tennis – all sports demonstrating substantial media revenue potential and benefiting from existing infrastructure.
The fund’s appeal is evident in its success; its debut fund reached $250 million, significantly exceeding the initial target of $100 million. This growth, according to Nortman, reflects the rapidly evolving market landscape during the fundraising period. She recalls initial skepticism towards women’s basketball, with “nine out of 10 conversations” expressing doubt. However, the rise of Caitlin Clark and the subsequent record-breaking viewership of the WNBA dramatically shifted perceptions.
This shift validates Nortman’s belief that successful investment in women’s sports isn’t about identifying a single winning team, but about fostering a thriving ecosystem. She emphasizes that a healthy market requires sufficient capital and operational expertise distributed across multiple franchises to navigate unavoidable challenges.
Angel City FC, one of Monarch’s investments, appears to be setting a precedent. Nortman notes that its success has inspired other ownership groups - including those in Kansas City, Bay FC, and Washington D.C. – to emerge with female-led teams demonstrating strong financial performance. Angel City, whether intentional or not, has become a model for others to follow.
as women’s sports experiences a period of significant growth - with new teams like the Golden State Valkyries joining the WNBA,the NWSL expanding,and media rights deals increasing – Nortman maintains a cautious optimism. She believes sustained success hinges on fundamental factors: robust league governance, committed ownership, infrastructure investment, and strong community engagement. While media attention creates opportunities, operational excellence is crucial for long-term sustainability.
“Every spike is an chance to create a consistent experience around it,” nortman explains. “You have to look at all the underlying criteria to see where it’s likely to stick around.”
