Overview of Pro Sports’ Private Equity Pickle
This episode of The Varsity with host John Ourand features Jason Stein, managing partner of SC Holdings, discussing how private equity is reshaping sports. The conversation centers on Stein’s investment philosophy, the growth of sports as an asset class, and why he believes skepticism often signals opportunity—especially in emerging sports like pickleball and youth sports, as well as in college athletics and ad-tech innovation.
Key Themes and Topics
1) How Jason Stein evaluates investments
- Stein says he invests where passion meets opportunity.
- He and his partners look for:
- strong unit economics
- real growth potential
- meaningful impact on communities or culture
- founders/operators they can support
- He emphasizes that SC Holdings is operator-first, not just capital-first:
- they see themselves as builders
- they try to help entrepreneurs “see around corners”
- they often focus on businesses where they can add operational expertise, not just money
2) The case for private equity in sports
- Stein argues sports PE is still in the early innings, not overcrowded.
- He sees sports becoming more commercialized and institutionalized, which he views as positive.
- He distinguishes between:
- trophy assets like team ownership
- operating businesses around sports, such as media, facilities, retail, technology, and fan engagement
- His view: the best opportunities are increasingly in real businesses with cash flow, not just team equity.
3) College sports as a major commercial opportunity
- Stein believes college athletics are moving toward a more professionalized business model.
- He sees upside in:
- better media rights deals
- direct-to-consumer streaming
- deeper sponsor integration
- NIL monetization
- upgraded facilities and year-round venue usage
- He argues major college programs could become multibillion-dollar assets if run more like businesses.
4) Why he’s bullish on pickleball
- Stein discusses SC Holdings’ investment in Pickleball Inc., backed by Apollo’s $225 million investment.
- The platform includes:
- Major League Pickleball
- the PPA Tour
- amateur events
- retail/e-commerce through Pickleball Central
- digital media via Pickleball.com
- direct-to-consumer streaming
- He says pickleball is a rare full-stack sports platform with:
- participation
- media
- commerce
- live events
- community
- He points to:
- 25 million U.S. participants
- strong TV numbers
- growing brand interest and ownership by well-known athletes/investors
- A key argument: participation can drive viewership, similar to cricket or global soccer.
5) Why he thinks pickleball can become a real media property
- Stein says the sport’s mix of:
- mixed doubles
- men and women competing together
- age diversity
- fast-paced personalities creates compelling TV and social content.
- He sees storytelling and documentaries as major growth drivers.
- He highlights the Amazon docuseries Partners as an example of how to build fan interest through narrative.
6) Youth sports and MADE Hoops
- Stein says youth sports can be valuable, but only if they’re built with the right structure.
- SC Holdings invested in MADE Hoops, a major youth basketball platform.
- MADE Hoops focuses on:
- tournaments
- leagues
- camps
- player development
- It also opened a 24/7 training facility designed for skill development rather than games.
- Stein argues U.S. youth sports should borrow more from Europe, where training and development are more centralized and professionalized.
- He stresses the need to balance business growth with accessibility so kids aren’t priced out.
7) His skepticism of the old advertising model
- Stein’s side passion is live sports ad technology.
- He argues the traditional 30-second commercial spot is outdated.
- His reasoning:
- viewers now have too many alternatives and second screens
- broadcasters can no longer assume ads are being watched
- modern ad products should stay in the game flow
- He supports formats like:
- side-by-side ads
- lower-thirds
- ads during natural pauses
- His broader point: ads should be less disruptive and more measurable.
Notable Takeaways
- Skepticism can be a buying signal: Stein says he likes investing when the media is most doubtful.
- The biggest opportunities in sports may be outside team ownership: media, facilities, leagues, and consumer platforms may offer more upside.
- College sports are heading toward business logic: media rights, NIL, and streaming will likely transform how schools operate.
- Pickleball’s strength is its ecosystem: the sport is not just a league, but a connected platform with events, products, content, and fans.
- Youth sports need structure and fairness: growth is good, but only if it remains accessible and development-focused.
Bottom Line
The episode presents a strong case that the future of sports investment is shifting from passive ownership to active platform building. Jason Stein sees major opportunity in sports properties that combine media, commerce, and community—especially pickleball, college athletics, and youth sports—while also pushing for a modernized advertising model built for today’s fragmented media world.