Buying vs. Building in Sports

May 14, 2026

∙ Paid

First off…

Thanks to our partners Citrin Cooperman, Blackstone, and Stifel for helping coordinate a great event in NYC last week.

More of these gatherings to come!

Most founders think the next billion-dollar sports companies will be built from scratch.

I believe many of them will be assembled instead.

Not because innovation is slowing down...

But because the sports industry remains one of the most fragmented markets in the world (and private equity is entering at record rates).

There are thousands of firms still operating independently:

Most are undercapitalized, operationally inefficient, locally dominant, founder-led, and often lacking modern technology or distribution.

That creates a massive opportunity in not just building new businesses...

But to BUY existing ones and compound them.

Let’s Dive In 👇

The main catalyst fueling this trend is that artificial intelligence (AI) is rapidly lowering the cost of creation.

As this happens, many traditional digital advantages begin to shrink.

But four things become more valuable when creation becomes abundant:

In today’s new world…anyone can vibe-code an app, launch new software, or generate thousands of pieces of content with little friction.

However…

Sports still own something the internet struggles to manufacture authentically (making it especially interesting over the next few decades).

Something we’re seeing at Profluence is that many of the smartest operators are increasingly shifting from building products to buying ecosystems.

In many cases, distribution is becoming more valuable than the product itself.

This shift is in full swing across sports.

Let’s take a look at a few early examples in sports, as I believe this trend is about to accelerate even further.

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