Unrivaled, a favorite among sports startups, recently made waves with the announcement of its $340 million valuation. This milestone is a major win following their first-ever season. Negotiations with Bessemer Venture Partners culminated in the $500 million valuation. That’s a testament to the monumental confidence investors have in the league’s future growth and sustainability.
Through its first season, Unrivaled reportedly earned around $30 million in revenue—about twice what was originally projected by league leaders. This unforeseen financial windfall has opened the door for greater outreach and improved space. Unrivaled recently received a new round of funding and is set to invest heavily in venue space in Miami. Their focus is on building out an additional 15,000 square feet dedicated exclusively to the player facilities, including a second practice court. To meet rising fan demand, the game arena will add 150 seats.
Before the start of the season, Unrivaled managed to raise $35 million in funding from a mix of investors and seed funding rounds. The league’s financial performance indicates it just about broke even in its inaugural season. It’s on course to generate a surplus within one year! Current economic forecasts mean that these players will be making six-figure salaries for the foreseeable future. The average salary for that inaugural season is now estimated at $222,222. Unrivaled has instituted an equity model, creating a paradigm in which every single player is guaranteed an ongoing stake in the league’s success.
Alex Bazzell, a driving force behind Unrivaled, said he was bullish on the league’s growth trajectory. Fenton said when the state exceeds revenue projections, it jams the pedal down on development timelines.
“Because we outperformed our revenue expectations in season one by almost doubling it, it allows us to move a bit quicker. … It’s become a three-year roadmap [instead of five]. In year two, we are really going to double down on the athletes.” – Alex Bazzell
Unrivaled’s long-term growth strategy has been accelerated tremendously with the recent valuation and influx of funding. The league’s original five-year plan for expansion has since been cut to three years. This increase is a direct result of its amazing performance and increased investor confidence.
Unrivaled represented by incredible lineup of investors. In that grouping are legends like Giannis Antetokounmpo, Carmelo Anthony, Stephen Curry, Geno Auriemma, Coco Gauff, Dawn Staley and Michael Phelps. These new majority shareholders, however, are uniquely positioned to capitalize off league’s increasing valuations and financial success.
“They are largely majority shareholders. They are going to reap the benefits of these growing valuations, not just, ‘oh, congrats, good job,’ and ‘you’ll get better resources.’ Our whole brand ethos is coming into effect and improving itself in a short amount of time.” – Alex Bazzell
Unrivaled kicked off its second season with an unmistakable emphasis on the importance of player facilities. Additionally, they are setting an example of long-term growth and sustainability by expanding audience capacity.
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