In this episode, Patrick explains the power of alternative investments compared to traditional investments. This can be anything from professional sports teams to owning shares of rare artwork. Here’s What Billionaires Don’t Want You To Know About Alternative Investments!
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Have you noticed how recently Saudi Arabia Bahrain Abu Dhabi Kuwait Qatar Are interested in buying sports teams Why why do you care about golf why NBA Why MLB why soccer do they know Something we don't know are they running A printing machine over there that we Don't know about is it just something They're throwing their money away or is It an investment they're making how did UFC when they bought it in 1993 for two Million dollars is now a 12 billion Dollar organization the person that Bought the Cowboys in 1964 million Dollars Cowboys are the most expensive Franchise at eight billion dollars it's A lot of money being made here what are The next Sports you ought to think about Is there money and alternative assets Can you get involved in it we're going To talk all about that today if you get Value out of this video give it a thumbs Up subscribe to the channel but let's Get right into it look if you're like me When you first started watching sports You just love the game like oh my God I Love this game like I watch baseball Saying what a cool game these are the Stats this is awesome wow NBA this is The countdown this is the shot clock That's how NHL works three periods That's how soccer Works what a cool Thing this is and then maybe you and I Experience when you bought your first
Pack and you opened it up and you got This card and it was seven dollars and Then a year and a half later you sold The car for 28 dollars you're like oh my Goodness from seven to twenty eight Dollars that's three four hundred Percent of money I made as a regular kit The same way you make your money there As a kid in baseball cards is the same Way these billionaires are making money It's the reason why some people are Buying sports teams by the way I'll give You a quick story here and then we'll Get into all this data I get a call out Of nowhere one day I'm in the office This guy calls me saying hey are you Interested in Wayne Gretzky I said I'm Happily married he says no no are you Interested in Wayne Gretzky rookie cards The two best ones out there PSA 10. I Said sure what's the number eventually Me and this owner talk we come up with a Number I end up buying these two cars For 540 000 I send one of my guys secret Man I trust he goes to La they meet at PSA headquarters in Newport Beach the Owner brings the cards drops it off we Give them the money we exchange my Friends family wife they're like what Are you doing buying a car for 540 000 I Said first of all alternative assets Wayne Gretzky the greatest hockey player Of all time there are not too many of These cars going to be out there this is
A good investment on making and I sat on It 18 months later you know what we sold It for at Heritage auctions it was a World record at the time 2.2 million Dollars I made 300 rate of return in a Span of what 18 months now recently I Became a minority owner of the Yankees I'm there of course the emotions all That exciting stuff yes the announcement Great we're in the stadium incredible Feeling celebration I get to call them Bermuda oh my God I can't believe this Is happening Unbelievable but guess what my Investment already based on me starting The ownership process at the valuation Of 2022 according to Forbes Yankees Already in 2022 made 18 and that is the Price people buy or sell teams Yankees The investment in less than a year of me Owning it already made 18 so what is all This world and Pat I don't have that Kind of money why how can I get involved In this I understand this is why I'm Kind of getting you to think about this Alternative assets the unconventional Way of making an investment not just to Mute Trump on stocks but so sports teams MBA started publicly introducing their Valuations of Team prices in 96. MLB and NFL was 98 and NHL was 2004. let's look At some of these team prices to see what Kind of increases they've had over the Years so what we did is we took the most
Expensive teams in every league and the Least expensive team and we're showing What kind of rate of return they've had In the last 20 years Yankees in 2003 was A 730 million dollar franchise today It's worth 7.1 billion it's increased 872 percent by the way Yankee Steinburner originally bought it I think In 1973 for 8.8 million dollars that's a Thousands of percent rate of return in That organization Cowboys 2003 851 Million dollar valuation today 8 billion An increase of 840 percent the Cowboys Was bought in 1964 1 million dollars Warriors 176 million 0003 today they're The most expensive franchise in the NBA Surpassing the Lakers and the Knicks 7 Billion dollars an increase of you ready 3877 I believe Shaman sent a tweet he Was a minority owner of the Golden State Warriors when they first voted for 450 Million dollars a few years ago he said I went in 10 he says my rate of returned On my 45 million dollar investment I Ended up getting out at around 500 Million dollars is what he paid on his 45 million investment I may be a little Bit off on the dollars but the Tweet is Out there for you to find Rangers hockey 250 million in 2003 today 2.2 billion a Rate of return of 923 percent now let's Look at the least valued organizations In each sport and what the rate of Return has been and MLB Pirates 163
Million today they're worth 1.3 billion A rate of return still 697 Lions 509 Today 3 billion that's still a rate of Return of 489 Kings 259 today 2 billion That's a rate of return of 672 and last But not least one's a tough one here Coyotes they're not going to like this They were 150 million dollar Organization on O3 they're only 450 Today 200 percent and when you compare This to the k-shiller home price index On what kind of rate of return that's Done since 2000 that's only returned 160 And a half percent the s p since 2000 Has been around 324 percent and when you Compare it every one of the sports teams Beat out the rate of return SMP is given As well as real estate by a mile except For the coyote so what does this tell us That means alternative assets must be Something you ought to consider if You're somebody I'd say I'd love to Invest into alternative assets but man I Don't have 10 million bucks I don't have 5 million dollars I don't have a million Dollars maybe I can invest 100 Grand Maybe 10 grand how do I do it Masterworks is a company that allows you To buy into Arts Picasso Banksy Andy Warhol where you buy a share into that Art so if it sells if it goes up makes Whatever kind of returns it is you're Able to participate in that in smaller Fractions as if you're buying a stock
Into a company I was at an event in my Miami with David Solomon and Goldman Sachs the entire event at Art basil was All about the alternative Investments It's something that many many people are Looking at when you see what happened With S P 500 last year worst year since 2008 in the same exact year auctions With art had a record-breaking year same Year okay when you see the complete Opposite taking place it's something you Ought to consider if you want to Masterworks has nearly 750 000 users now Just like any stock you buy Masterworks Does all the work they get every item That's going to be registered with the SEC but if you want to consider Participating with Masterworks and Investment click on the link below join The other 750 000 subscribers that are Part of Masterworks by the way here's a Chart from 2002 how each league does Versus S P 500 if you look at the Numbers S P 500 is the orange one NFL is Green MLB is purple NBA is blue and NHL Is black look at S P 500 2002 versus 2020 SMP is 334 beating out NHL NBA's All the way at the top at 8 52 MLB is Second at 548 rate of return and NFL is At 472 percent so what's caused this Increased valuation in these Organizations over the last 10 years Well we look at four things that Determine the revenue of a franchise you
Look at meteorites gate Revenue Sponsorships and Merchandising if you Look at this year in 2013 look what was At the lowest the lowest was that blue Color which represents meteorites then It was merchandising then it was Sponsorship then gate Revenue but look At what happened today meteorites went From last to First merchandising is now Last then you have sponsorship which was Second now it's third and gate Revenue Went from first to second what causes That eyeballs interest people are Watching this by the way this is one of The things that the reason why cable is Still around a lot of it is simply Because of sports but wait you see what Ott is doing watch ticket prices in the NFL from 2006 to 2022. the average Ticket price in 2006 was 62.38 the Average ticket price today is 111.75 so Let's unpack this meteorites by Different sports and see how big this Number is when you look at the NFL in 2022 the NFL signed a new meteorites Deal with Amazon ESPN Fox CBS and NBC Worth ready 113 billion dollars over 11 years this Is the largest media rights deal in Sports history MLB and 22 signed a new Meteorite steal as well with Fox Turner Sports ESPN for 30 billion dollars over Seven years this is the largest Meteorite Steel in MLB history MBA in
2021 signed a new meteorite still with ESPN Turner Sports Amazon for 24 billion Over seven years this was their largest And by the way there's a special caveat Here because notice how the NBA owners Don't like to bash China you're Wondering why in 2015 the NBA signed a One and a half billion dollar per year Deal with 10 cents giving it exclusive Rights to broadcast NBA games China's Markets massive I can only imagine what That could be if these guys are nicer to China hence they always protect China There's a reason for it NHL 2021 they Sign a new media rights field with ESPN TNT and Hulu for 4.9 billion dollars Over seven years this is their largest But there's the least amount of interest For NHL simply based on dollars remember How earlier I said cable is able to be Around because of sports and all the Stuff that we watch on cable and then Ott got into the sports game watch the Data here on Ott in 2016 Otts were only spending a hundred Million dollars a year on Sports 2017 Goes to 400 million then 900 million Then 1.8 billion then 2 billion then 2.9 Billion then 5.2 billion estimated eight And a half billion in 2023 and climbing And if you look at the numbers in 2023 Blue is North American which is doubling Orange is Europe which is about the same And the rest of the world is the gray
This scares the crap out of cable Because cable companies are sitting There saying what if these guys no Longer need us or want us and these Ott Companies are able to give the kind of Money we've been given four years we've Got them pulling on this this is not Good so that's one factor you know what Else has changed the game in a big way Massive way sports betting this is the Event the U.S Supreme Court struck down A federal ban on sports betting in May Of 2018. once they did that it was Mayhem with sports betting in 2019 900 Million dollars in 2020 one and a half Billion in 2021 4.3 billion in 2022 Seven and a half billion what do you Think is going to next it'll be 50 Billion in no time just sports betting Per year and according to American Gaming.org Major League Baseball alone Stands to gain 1.1 billion dollars in Projected revenue from legal sports Betting NFL is going to gain roughly 2.3 Billion NBA could increase by 585 Million and NHL could increase by 216 Million dollars as if this isn't already Enough look at the kind of companies That are signing contracts with sports Teams ready NFL in 2019 signed a 10-year Deal with DraftKings NBA in 2021 signed A 10-year deal with FanDuel MLB in 2023 Signed a mo multi-year deal with FanDuel And NHL in 2022 signed a seven year deal
With bet MGM by the way I got a few Different reasons why this is taking Place but one of the things that's Happened with social media is the world Went from being very big we didn't know Each other to very small the moment We're all on social so imagine you're in A complete different country you see a Highlight video for an NFL team here That's going viral in Germany and that Kid's like that's a pretty cool game I Want to kind of see about NFL now There's interest in Europe South America Central America you know Middle East They're interested in sports more today Because social media expanded the market And made the world a smaller place Because we're all connected now so now How are these sports franchises valued It's based on a few different factors Number one is the popularity of the Sport number two is the success of the Team number three is the strength of the Market number four is the stadium or the Arena number five is team purchase think About it like if you bought a house for Six hundred thousand dollars five years Later your neighbor sells us out for 2.2 Million you're all of a sudden said wait A minute my house is now worth 2.2 Million that's what happened in the NBA Everybody thought their team was worth Three four five hundred million dollars Until Donald Sterling was asked to leave
The NBA and sell his team the Clippers Which was bought by Balmer for 2.2 Billion overnight NBA owners were like Thank you Steve Ballmer you made us a Couple billion dollars just because they Bought the clippers for 2.2 billion and Of course you have to consider the Financial strength of the organization Now there's something happening right Now where a lot of the wealthy folks in America are not too happy about it Because imagine you're able to go buy a Place and you have money you can buy This place but the other guy's got 50 Million dollars he's sitting on cash You're only sitting on five million Dollars on cash you're like dude I'm Willing to pay you 4 million it's like You know what I'll overpay about 30 Million dollars I'll pay you seven Million dollars you're like I can't pay Seven million dollars but the other guy Can't that's what's happened in sports Right now and here's who's causing it Sovereign wealth funds are starting to Realize that sports franchises Non-duplicatable assets are becoming Great Investments but some people worry That Sovereign oil funds from countries With poor human rights records could use Their ownership of sports teams to Influence American culture and politics For example the Qatar investment Authority which owns a stake in the
Washington Wizards has been criticized For its treatment of Migrant workers in Qatar meanwhile some people worry that Sovereign World funds have an unfair Advantage over other investors in the Sports Market this is because they often Have access to large amounts of capital And can afford to pay higher prices for Sports teams while maybe some people in America can for example you'll say yeah That thing's worth 2.2 billion we'll pay 2.4 billion they'll come in and say yeah It's worth 2.4 billion here's 3.6 Billion we're not worried about it you Know what that does like I can't compete With you what happens to follow a Sunday By 10 20 30 40 50. what if in the next 20 years these Sovereign wealth funds in The Middle East on half the teams Literally think about if that actually Takes place now I'm sure someone Eventually is going to go out there and You know campaign and Lobby and say you Can't have that you know maybe we can Only have 10 of teams or 20 of the teams But that day is coming let me give you Some stories of what's really taking Place right now Qatar investment Authority in 2023 acquired a five Percent stake in Monumental sports and Entertainment which owns the Washington Wizards Washington Capitals and Washington Mystics Saudi Arabia's public Investment Fund in 2022 card a
Controlling stake in Newcastle this is An English Premier League Bahrain Muntala cat holding company in 2022 Acquired a minority stake in Cleveland Cavaliers Abu Dhabi United group in 2008 Acquired Manchester City Kuwait Investment Authority in 2019 acquired a Minority stake in the Dodgers live golf Has paid some players some 800 million Dollars to leave the PGA Tour to join Its team while some may say Pat that's Not a lie that's a small minority amount I know but it always kind of gets Started like that and like I buy this Land and that land and this land and Holy you want all of it now it Starts like that so we kind of have to Be aware to see who's buying what Because now they're starting to have a Lot of influence so the question becomes A lot of people may say Pat so what's Left is this it yeah I can't get into These Guys these are too overpriced yes But there are other sports and leagues That are coming out you just have to Watch very close to what's going on Remember earlier I talked about on 1993 They bought UFC for 2 million today it's A 12 billion dollar organization you Know how much money return that is 10 Out of 2 is 20. 100 is 200 a thousand is 2 billion so you got 6 000 times return On your investment on two million Dollars that's what happened with UFC
What else is this happening to it Happened to MLS there was a big push of Buying MLS organizations the average MLS Top line revenue right now is 45 million Dollars and what people are paying for Is around 12.2 times the top line Revenue it's what the Market's currently Paying for you may say 12.2 okay what's The big deal with that the average MLS Team you could buy in 1996 for 10 Million dollars today the average MLS Team is 550 million dollars but we can Look at other sports or Industries Esports people like Esports are you Serious yes Esports from 350 million in 2018 to 1.4 billion today pickleball Teams are now selling for five million Dollars Pat pickleball let me give you Some stance on pickleball 36 and a half Million people in America to play Pickleball in 2023 18-34 largest age Bracket for pickleball players that's 29 153 million dollars of pickleball paddle Market size in 2021 it's up 159 over Three years 10 320 number of places now For pickleball to play in U.S and it's Forecasted to grow 7.7 compound annual Growth rate through 2028. that's Pickleball by the way I got approached By a rugby team saying do you want to Buy a rugby team for three million Dollars because Rugby's going to be Going in America you got lacrosse you've Got a bunch of different things that are
Coming this is not going to slow down You see the whole slap thing the slap Game that's coming that they know why so Yeah we'd be interested in that there's Going to be opportunities keep your eyes Open FYI let this just be an example to You that you ought to pay attention to Alternative assets it could be cards it Could be teams it could be art it could Be different things if you can't do it At the higher level you can go on at a Smaller level but it's definitely Something you ought to pay attention to If you got value out of this video give It a thumbs up and subscribe subscribe To the channel and before you invest Into art watch this video before doing So take care everybody bye bye Foreign
