Investors enjoying the ride with new digital-focused leagues

LONDON – Sports investors diversifying into emerging new small-sided, digital-focused football leagues are enjoying the ride so far, with audience figures and global reach expanding – but questions remain over the format’s long-term viability.

Seeking to offer an alternative to traditional 90-minute football, new leagues such as the Spanish-based Kings League and German-originated Baller League have sprung up in recent years seeking to appeal to a younger, digital-oriented audience.

The formats, with gamified rules and a mix of former players and content creators, are drawing ever-better streaming figures and spreading internationally, including into the lucrative US market.

Money is flowing in too.

US-based Alignment Growth, which has a portfolio in sport, led a recent investment round for the seven-a-side Kings League founded by retired Spanish international Gerard Pique. That raised US$63 million (S$79.8 million) in January, taking the league’s funding to over US$160 million since its 2023 launch.

“From an investment perspective, these properties offer something traditional sports can’t,” Alignment’s co-founder and managing partner Kevin Tsujihara said. “Direct audience ownership, lower infrastructure costs, rapid international scalability, and monetisation models aligned with digital platforms.”

The Kings League launches in America in 2026 – its eighth domestic men’s league from Italy to Saudi Arabia. Typical investment needed for each market is €5 million to €7 million (S$10.4 million), the league says, though the US venture will be more.

The six-a-side Baller League is also launching in the US in March, ahead of the World Cup, after successfully expanding to Britain. One of its major backers, EQT Ventures, led a funding round that raised US$25 million in December 2024.

“The upcoming US launch and the CBS Sports broadcast deal represents global consumer appetite for the format,” said Tom Mendoza, a partner at EQT Ventures.

Investors say they have taken note of fast-changing sports consumption habits, with a growing audience consuming from phones and tablets, away from traditional TV screens.

“What attracted us is the convergence of three powerful trends – the shift of younger audiences to digital-first content consumption, the creator economy’s ability to drive authentic engagement, and soccer’s universal appeal,” said Alignment’s Tsujihara.

According to a Deloitte study, around 90 per cent of Generation Z and millennials now consume sport via social media. The new leagues can often be seen on free platforms like YouTube and Twitch.

However, one investor, who asked not to be identified, warned that viewing and in-stadium attendance numbers were not the sole guarantees for investment success, with financial metrics needing to stack up too. And not all are buying into the buzz around the new formats, noting the enduring global pull of traditional football.

“I think there’s a misconception that alternative formats like Baller League are as compelling as the highest level of the sport. They’re not competing on the same emotional or competitive plane,” said Jordan Wise, a football agent and entrepreneur.

Wise, founder of advisory firm EDEN and creative agency CAOS, estimated a credible US launch would cost a hefty US$8 million to US$15 million or more in the first year “if you want to make real noise”, given the higher costs of talent, media and staff.

In one possibly ominous sign, the Baller League has paused its Germany format while it prioritises the US launch. No reason has been given. REUTERS