Marques Colston likes to defy the odds. You probably don’t remember this, but Colston was the 252nd draft pick in 2006. Ten years later, he was (and still is) a Saints royalty. Similarly, when Colston floated Champion Venture Partners with Nick Edwards, a former professional MMA athlete, it was the two pros venturing into uncharted territory (at least for them). The good news is Colston & Co. knows the recipe for success – they just raised $100M in funding.
And Colston is gunning for more.
Colston’s move to venture capital and his success in that space is, however, a bigger trend in the sports industry. More and more athletes are opting for private equity, investing in different sectors, not necessarily geographically limited to their own country. They are not standing at the crossroads; they have decisively taken a step in the right direction. Analyzing the larger trends in the industry offers a similar picture.
The business of athlete-owned investment ventures
Think of LeBron James, Shaquille O’Neal, Serena Williams, Travis Kelce, and others. They are not just brand ambassadors anymore. They are entrepreneurs, investors, and key players in the market. It’s a move born out of necessity as much as of passion:
The demanding nature of sports means income from the sport is only for 10-15 years, making future financial decisions imperative.
Athletes typically take home only 50% of their contract fees after federal, state, and local taxes, paying the team, coaches, etc.
Moreover, the pay cycle varies depending on the league. NFL generally pays athletes only in a specific window. Whereas, in an individual sport like Golf, if you don’t make the weekend cut, you are going home empty-handed.
Hence, venture capital, despite all the risks associated with it, becomes a lucrative business opportunity for the athletes. They are investing in sports tech, media, and fan engagement platforms. From start-ups that are involved in stadium management to companies in the fitness and wellness space, athletes have their eyes everywhere.
Shaquille O’Neal reportedly has stakes in over 150 car washes and 40 fitness centers. The NBA icon also invested in Google’s Series A funding in 1999 and then in Apple in 2004.
Serena Williams founded Serena Ventures in 2014. A decade later, it has invested in around 60 companies, of which 53% are established by women.
LeBron James’ $1M investment across 19 franchises has now ballooned to around $ 25 M. James also invested in Fenway Sports and now holds a 2% stake in Liverpool FC.
Kevin Durant, through his Thirty Five Ventures, reportedly invested $1.2B in Robinhood, which went public at $32B. Similarly, Postmates, where he invested $1M, was acquired by Uber for $2.6B.
Seen in this context, Colston’s shift towards capital fits perfectly. But his investment model differs slightly from other established sports investors and investor firms. Colston explained his strategy in a recent appearance at Forbes’s Nasdaq.
Where is Marques Colston putting his money?
Multiple surveys indicate that the sports industry’s revenue was $2.65 trillion in 2023, a $336B increase from 2019. It’s a larger industry with various interconnected smaller sectors tied together.
The global sports technology industry is expected to grow from $34.25B in 2025 to $68.7B in 2030, growing at a CAGR of 14.9%.
The Fitness and Recreational Sports Center Market is valued at 39.74 USD Billion in 202, per Market Research Future.
Whereas, Coherent Business Insights reports that the sports hospitality market is expected to grow at 20.8% between 2023 and 2031.
Colston’s prudent decision? Injecting money into ventures that are working in the sport-adjacent industries. For example, their portfolio includes a brand that offers services to the stadium, like plumbing, seat management, etc. Marques Colston explained, “Our thesis kinda makes room for nuts and bolts type of companies that goes with high growth companies.”
Was great catching up with former @Saints WR Marques Colston … His private capital firm Champion Venture Partners raised $100 million and now seeking to invest in sports teams and businesses.
Interview: https://t.co/G1Slci9cBl#Sportsbiz #NFL pic.twitter.com/2tNxUOURwe
— Jabari Young (@JabariJYoung) February 27, 2025
Aligning with that, CVP is eying burgeoning leagues like Softball, Pro volleyball, etc, and not NBA, MLB & NFL. Asked more on about his strategy, Colston distinguished CVP from the established firms thus: “What we do is not different. Who we do it for is what makes us different.”
So, CVP is eyeing European soccer because they need to cough up less than what they have to while investing in an NFL franchise. Their immediate goal is to diversify their investment portfolio and spread their money across different areas. A strategic decision and something that Marques Colston learnt from his life at the elite level of pro football. “I really do understand the strategy because I played at the wide receiver position at the highest level,” said the Super Bowl winner in the Forbes chat.
It’s not just wide receivers, it would appear that athletes across the spectrum are increasingly becoming aware of the power of equity. And now the NFL itself has embraced the reality that MLB, NBA, and MLS accepted a few years before.
Equity – a new player in the sports landscape
The NFL’s decision to allow private equity last September was not an isolated move. Within five months of the announcement, at least six franchises have already allowed private equity or are in talks to enter a deal with investment firms. It’s part of a bigger shift in the sports industry, where not just teams but players are increasingly favoring equity instead of traditional endorsement deals.
In 2008, James opted for part-ownership of Beats. Six years later, Apple acquired the brand for $3B. Per a Forbes report in 2023, that single business decision added $700M to James’s net worth.
Similarly, New York Mets’ David Wright took a 0.5% stake in Vitamin Water. A year later, when Coca-Cola acquired the parent company, Glaceau, for $4.1B, Wright’s stake was worth $20.5M.
Roger Federer, after parting ways with Nike, acquired a 3% stake in On, which was valued at some $200M when the brand went public.
That trend has now translated into the NCAA as well. In fact, Makenzie Steele has equity deals with brands like LootMogul, an athlete-led, AI-powered gaming platform.
It’s pretty clear that players and leagues are now more open to private equity. Athletes, in fact, are now more pro-active in negotiating an equity deal with brands they represent. For brands, an athlete’s involvement raises their reputation and draws more eyeballs from future investors.
More importantly, it is currently serving as a stepping stone for athletes before moving to venture capital. Some, like Colston, are coming out as pivotal players in the industry. They are not just setting up a trend, they are reshaping the market as well, pushing the frontier to newer territory. Sectors such as biotechnology, renewable energy, AI, and gaming are where these athletes are aiming to put more money. You can expect more athletes to follow Colston’s footsteps in the future.
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