This is something I’m personally looking into. So, I wanted to reverse engineer things a bit and layout my thinking (hoping if there’s a misstep someone will point it out).
And this is obviously a high risk investment (therefore high reward). Similar to buying a racehorse, or funding a F1 team, backing a boxer, poker player, what have you.
To get to the reverse engineering. How I’m currently viewing it is similar to investing in other forms of entertainment like movies or music. The only reason anyone is paying A list directors and movie stars 20 million a movie is because the producers are looking to bank 200 million themselves.
I think it’s probably safe to say that’s the standard ratio in entertainment where talent needs to generate 10 x the revenue they hope to earn. Why the 200/20 million figures. Pretty sure it’s the same in the music industry as mentioned. 1 million in the pocket of a musician is generating 10 million for the producer. (
https://news.ycombinator.com/item?id=3482983)
Which gets highly interesting in my opinion when these figures are turned towards golf. Because the list of billionaire athletes is extremely top heavy with golfers. 4 of the top 6 are golfers – Tiger Woods, Arnold Palmer, Jack Nicklaus, Phil Mickelson.
https://www.forbes.com/sites/kurtbad.../#294a795e4b64
Anyways, in order for these athletes to pocket 1 billion themselves (using the 10% rule) what these golfers are doing is generating 10 billion in revenue for investors.
So, if I’m looking to fund a golfer. That’s the question I think I should be asking. Can this person generate 10 billion dollars in revenue?
And the only way to do that is with a worldwide product. With low barrier to entry. Which in effect means the buying public needs to be able to connect with an artist’s song within a few seconds.
Or in the case of athletes the marketing draw needs to be a visual display of athleticism that transcends language. A quick glance should tell the consumer everything they need to know. Going back to movies, this is why big budget action movies are preferred for worldwide distribution – much less dialogue for things to be lost in translation.
With all that said, a very promising investment opportunity has arisen with the following individual. A quick eyeball test on my part says, “Yes, this is someone who can generate 10 billion dollars for investors with visual symbolism that’s international.” (Image:
https://i.imgur.com/hzh9WGM.jpg)
Of course it’s not that easy. As mentioned, that’s the quick eyeball test. To really determine if this opportunity is worth 10 billion, there needs to be a “crossover element” or “ingredient x”.
For Tiger Woods that crossover element would be his ethnicity. Someone like Jack Nicklaus brought multi-sport athletes to golf with his background in basketball. Arnold Palmer crossed over with “Arnie’s Army” including the middle/lower classes in the exclusive game of golf.
Outside of golfers there’s many more examples of athletes with crossover potential. Steve Largent went into politics. Michael Phelps “ingredient x” in my opinion was not just that he won, but destroyed records in the process. (Which I also see in the above photo – a golfer who cannot only win, but demolish records while doing so). Dr. Gil Morgan was a golfer and doctor.
Long story short. My wallet’s open and ready to invest in this guy. A rising tide elevates all boats, so I have no problem sharing this opportunity here.
What am I missing though? Why shouldn’t I take a flyer on this? (Opportunities come and go, but I think this one is special in that there’s a very real possibility we could be talking about 10 billion dollars.)