Oneteam Partners, the innovative venture established in 2019 by the NFLPA and MLBPA, is venturing into new territory with the launch of a $75 million fund. This initiative, named OneTeam Ventures, is strategically designed to invest in early-stage businesses that are dedicated to supporting and enhancing the athlete ecosystem.
According to a detailed proposal reviewed by Sportico, OneTeam Partners is actively seeking a general partner to spearhead this ambitious venture fund. By leveraging its extensive expertise, robust deal flow access, and profound connections within the celebrity and sports world, OneTeam aims to foster the growth of promising businesses and capitalize on their success.
The envisioned OneTeam Ventures fund will curate a portfolio of approximately 12 carefully selected companies, with an average investment of around $5 million per entity. The fund’s financial structure includes a 2.5% annual management fee on committed capital, alongside a 20% performance fee on returns exceeding a predetermined benchmark, slightly above the conventional “two and twenty” model prevalent in private capital arrangements.
The ownership structure and associated fees will be strategically divided between OneTeam Partners and the appointed general partner. The proposal indicates flexibility in the general partner role, open to both established sports investors and those from outside the sports sector seeking entry into this dynamic market. Sean Sansiveri, CEO of OneTeam Partners, confirmed via telephone the company’s ongoing evaluation of the fund’s viability, emphasizing the significant value proposition inherent in OneTeam’s unique market position.
The core objective of OneTeam Ventures is deeply rooted in OneTeam Partners’ overarching mission: to empower athletes to maximize the value of their intellectual property. Presently, OneTeam facilitates group licensing agreements for various unions, encourages cross-sport collaborations among athletes, and manages diverse aspects ranging from sponsorships and marketing to media engagements and investments.
Historically, OneTeam Partners has engaged in investment activities through two primary methods: direct investments from its balance sheet and the creation of special purpose vehicles (SPVs) managed internally. However, the proposal highlights certain limitations associated with these approaches. Direct balance sheet investments often faced lengthy board approval processes, while SPVs were sometimes less appealing to companies preferring single investors.
Notably, some of OneTeam’s prior investments have been integrated into commercial partnerships, including equity-in-kind arrangements as a form of compensation. To date, OneTeam has executed approximately 10 such deals, including collaborations with industry leaders like Fanatics and Bally’s. The current valuation of these equity-in-kind holdings exceeds $100 million, underscoring the success of this strategy.
OneTeam Partners’ investment portfolio also includes notable ventures like Overtime and Toldright. The proposal also reveals that OneTeam has previously passed on investment opportunities in prominent entities such as DraftKings, Just Women’s Sports, and Uber, citing limitations related to cash availability and infrastructure capacity at the time.
OneTeam Partners’ robust network of union partners encompasses the NWSL Players Association, the WNBPA, the USWNT Players, and the MLS Players Association. The company achieved a valuation of $1.9 billion in September 2022, following RedBird Capital’s sale of its 40% stake to a consortium including HPS Investment Partners, Atlantic Park, and Morgan Stanley Tactical Value. This new venture fund, OneTeam Ventures, represents a significant step in OneTeam Partners’ continued evolution and commitment to the athlete community.
