The Intersection of Sports and CRE: Expanding Beyond Athletes
Recent stadium construction projects that extend beyond typical sports stadiums demonstrate the growing popularity of the combination of professional sports and commercial real estate (CRE). These developments are evolving into vibrant neighborhoods that combine lodging, eating, retail, and hospitality spaces with entertainment. The Los Angeles Rams’ home stadium in the NFL, SoFi Stadium, and the New York Mets’ home field, Metropolitan Park, are two prominent instances of this tendency. These projects show what CRE dealmaking may look like in the future, with sports stadiums acting as the focal point of thriving mixed-use neighborhoods.
Seven sports venue-anchored development projects, associated with clubs from the five main sports leagues, are now under construction in 2024, according to real estate consultant RCLCO. There are also thirty-four more of these initiatives in the works or being considered by the public. This change in CRE highlights the development of diverse spaces that serve a range of functions and activities, leveraging the importance of sports to the American identity.
In the past, sports have been crucial in promoting inclusivity and diversity in America. Jackie Robinson’s post-World War II integration of Major League Baseball is a historic event that represents the dismantling of barriers based on race. This historical background emphasizes how sports have the power to promote inclusive settings and societal transformation.
Professional sports are currently developing talent pools for the real estate industry. Malcolm Johnson of Langdon Park Capital’s decision to leave the NFL and pursue a career in real estate financing was indicative of this trend. Howard Cross also departed the New York Giants to pursue a career in brokerage with Cushman & Wakefield. These instances show how successful former athletes may be in CRE, contributing special abilities and viewpoints to the field.
NIL and the Future of Collegiate Athletes in CRE
Considering the American professional sports market’s demographics, Black and Latinx people are frequently represented in this new talent pool. This paradigm has been acknowledged by Project REAP, a CRE talent effort, which has had former NBA players complete its training program. As Project REAP instructors, Johnson and Cross have also made contributions that emphasize the program’s importance in bridging the gap between athletics and CRE.
The prospective talent pool for the CRE industry is further expanded by the growing interest in women’s basketball. A growing number of women may switch from athletic jobs to positions in CRE as the country begins to recognize the worth of women’s sports. This transformation is a sign of larger cultural shifts acknowledging the worth and potential of female athletes.
In contrast to sports, the CRE industry does not hold talent auditions. But goal orientation, collaboration, and an extraordinary work ethic, qualities that sportsmen exemplify, are necessary for any firm to succeed. Athletes are also acquainted with the lingo employed in sports, which is widely utilized in commercial negotiations. Words like “home run,” “slam dunk,” and “moving the goal post” are frequently used in business contexts, highlighting the innate connection between CRE professionals and athletics.
Professional athletes are not the only athletes with potential for CRE; exceptional college athletes may now benefit from their names, pictures, and likenesses (NIL) due to new NCAA regulations. This shift equips collegiate players for future jobs in sports, business, or real estate development by encouraging them to view themselves as entrepreneurs. College athletes have commercial potential; one athlete who supposedly got a NIL valuation of $1.7 million while still in school is Angel Reese.
Even though the most talented college players may choose to play professionally, many of them eventually switch to corporate real estate. Legendary figures like Magic Johnson, Alex Rodriguez, and Grant Hill show that real estate goals and a life beyond the game-day phase exist. Talent that may succeed in CRE later on is still being developed in the NBA, NFL, and other leagues.
Alums of Project REAP, including London Kemp Boykin of Amazon, are CRE leaders who understand the value of collegiate athletics as a talent pool. This realization emphasizes how important competitive intelligence is for athletes and how successful they may be in the CRE industry.
