David Blitzer Shares His Journey in Sports Investment
David Blitzer discovered his passion for sports investment after reflecting on his own experiences as a “failed athlete.” He characterized his teenage sports aspirations as naïve and, in hindsight, realized he wasn’t quite the standout he thought he was. This revelation came during a recent episode of Bloomberg’s podcast, “The Deal.”
As the chairman of Blackstone’s Cross Asset Investment Group, Blitzer has made a name for himself in the world of sports investment, an arena that has seen better days in the media and entertainment sectors. During the podcast, he sat down with hosts Alex Rodriguez and Jason Kelly to discuss how he built his ownership empire.
Blitzer co-founded Harris Blitzer Sports and Entertainment, which owns the NBA’s Philadelphia 76ers and the NHL’s New Jersey Devils. His investment portfolio also includes the NFL’s Washington Commanders, the MLB’s Cleveland Guardians, and Utah’s Real Salt Lake in the MLS.
He expressed that investing in these teams and leagues is both enjoyable and challenging, stating, “It’s rewarding, but really difficult too.”
Harris Blitzer Sports and Entertainment didn’t respond to requests for comments from Business Insider outside regular hours.
Why is Blitzer Investing in Sports?
Blitzer entered the sports investment scene in 2011 when he partnered with Apollo co-founder Josh Harris to purchase the Philadelphia 76ers for $280 million. This collaboration led to the establishment of Harris Blitzer Sports & Entertainment.
He noted their extensive experience with corporate carve-outs and emphasized the need for new management teams and innovative incentive structures, which he believes are often overlooked in the sports industry. According to Blitzer, the underlying principles of investment remain unchanged over time: supply and demand. There’s a growing roster of high-profile individuals eager to acquire sports franchises.
“These are media and content businesses with some of the best intellectual properties in the world,” he asserted. “In today’s environment, especially with live content, their value is significant.”
Blitzer is unique in that he’s the first individual to have ownership stakes in all five major male sports leagues in the U.S. He designed his portfolio to have a wide-ranging cross-sports appeal for advertisers.
For instance, earlier this year, his companies signed a deal with Campbell’s Soup that included promotions for the Commanders, Sixers, Devils, and Joe Gibbs Racing.
Similar to private equity firms, the scale of Blitzer’s portfolio allows for efficient investment in cutting-edge technologies like AI and data analytics.
He’s also branching into youth sports; last year, he co-founded a company called Other Sports, which focuses on young athletes. Additionally, he has stakes in the NWSL’s Utah Royals.
Blitzer’s Tips for Aspiring Sports Owners
Blitzer approaches sports investment with a strategic mindset, yet he acknowledges that ownership goes beyond just financials. His advice for potential investors? Take it slow.
He suggests, “In the first season, do little to nothing. Spend that time just learning. Get to know everyone in the organization and see how things work. Avoid making major moves right away.”
