Long-Term Vision and Acquisition
What ultimately swayed MSP, led by Jeff Moorad and Phoenix Suns Vice Chairman Jahm Najafi, to pursue the acquisition was the long-term vision. They saw the potential for the X Games to evolve into a formal league structure, injecting new life and value into a property that had grown stagnant. Moorad, a former sports agent and later the CEO of the Arizona Diamondbacks and San Diego Padres, emphasized, "We believe [action sports have] become relevant in the mainstream and will continue to be. In fact, creating a league structure is exactly what we're appealing to. We're able to display action sports in a way that's never been done before."The MSP Sports Capital acquisition was finalized in late 2022 for an undisclosed amount. ESPN subsidiary ESPN Productions remains a minority shareholder. MSP's investment was backed by funds like Cerro Capital and Velocity Capital Management, along with athletes such as Tony Hawk, Scotty James, Chloe Kim, and Daniel Ricciardo. The X Games League is set to debut in 2026, featuring team competitions in both summer and winter sports.
Elsewhere, Street League Skateboarding's parent company Thrill One Sports & Entertainment was acquired in 2022 for 0 million by Fiume Capital and Juggernaut Capital Partners. The Natural Selection Tour, Travis Rice's big-mountain snowboarding competition, announced an expansion into skiing, surfing, and mountain biking last month. And perhaps most notably, snowboard legend Shaun White is launching The Snow League, which will debut in March. This snowsports competition series secured a multiyear media rights agreement with NBC and Peacock and is backed by .5 million from Ares Management, Bolt Ventures, Ryan Sports Ventures, and Will Ventures, among others.
Investor Sentiment and Opportunities
"For the nascent leagues, there's definitely money available," said Natural Selection Tour co-founder and CEO Carter Westfall. Paul Hourigan, partner at Ryan Sports Ventures, echoed this sentiment, stating, "Really sophisticated investors are seeing an opportunity. There's latent demand from a fan perspective, but these haven't reached their full potential yet."One key reason investors believe these businesses are now capable of scale is that action sports are a perfect fit for the future of short-form, digital-first content. Hourigan continued, "We have a macro thesis around action sports having tremendous fan potential. They're also uniquely set up for current consumption trends. Really snackable content, engaging personalities, and the ability to have betting associated with them - these are all core drivers of future fan consumption, and these sports are tailor-made for that behavior."
Moorad mentioned that the X Games' multiyear broadcast deal with ESPN is essentially a time buy structured to allow the series to leave at any time. He expects the X Games to seek a streaming partner as it debuts its league format in 2026. The trend toward digital-first viewing is further supported by technological advancements that have made action sports content more compelling and cheaper to produce. Westfall added, "The cost of production has become so affordable. It's much easier to produce A-plus quality content. Especially with drone technology, it has elevated the immersive nature of action sports content."
Olympic Inclusion and Mainstream Appeal
Once-niche action sports have become more accessible to the mainstream thanks to Olympic inclusion. The snowboard halfpipe is one of the most popular events in the Winter Games, and the addition of skateboarding and surfing to the Olympics is attracting new audiences.Moorad noted that participation numbers are growing, and action sports are no longer limited to the youth. Westfall pointed out that the Natural Selection Tour's viewership sweet spot is in the 25-54 age bracket. Some are also leveraging their athlete investors. Hawk has been a valuable resource, especially in thinking through athlete compensation. The Snow League will directly utilize White's widespread fame.
Industry insiders expect these factors to lead to more activity, especially as institutional capital continues to flood into sports. Moorad and others view the growing competition as an opportunity. Moorad said, "It's clarifying for us that we're on the right track. I'm thrilled that others are now chasing action sports too. It's good for the industry and all the stakeholders. I'm excited that others are thinking about creative ways to get involved."
Each of the summer and winter X Games League will have a minimum of four teams at launch. Moorad shared that each team will be independently owned, and early interest from potential team investors suggests there may be even more teams at the debut. He wouldn't comment on potential pricing, only stating that the market will determine team values and that early indicators are quite positive.