The Topgolf of... The rise of the new "Sportstainment" category
The Topgolf of... The rise of the new "Sportstainment" category
Start-ups are popping up around the globe, morphing sports an entertainment together to create a new category some are labelling “Sportstainment.”
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The emergence of a new category: “Sportstainment”
Start-ups are popping up around the globe, morphing sports an entertainment together to create a new category some are labelling “Sportstainment.”
These start-ups are combining traditional sports experiences with hospitality, technology and gamification to create a new proposition that appeals to sports' non-traditional fans and younger generations.
The increased appeal of these experiences have resulted in rapid growth and expansion for some, and fueled the birth of others looking to capitalise off this new and growing trend.
Topgolf are the category kings
Topgolf is the most notable example of a successful Sportstainment start-up.
Topgolf was purchased by Callaway in 2021 for $2.6b
It’s grown to over 80+ venues globally
Callaway estimates that it will bring in more revenue than any other of its company segments by 2025 and views Topgolf as a key to its strategy going forward. To reflect this, they recently changed their name.
Topgolf have set a clear blueprint for success, that many others are attempting to replicate.
In the golf category, Drive Shack, BigShots, and Puttery have all turned the classic game of golf into a Sportstainment experience.
Outside golf, other entrepreneurs are attempting to apply a similar approach with other sports….
TOCA Social
“The world's first interactive football and dining experience, combining immersive gaming and world class food and drink.”
TOCA Social opened its first location in August 2021 in London and has recently expanded into the USA ahead of the 2026 World Cup.
It plans to operate over 50 soccer training centers and five soccer entertainment venues by the end of 2023.
TOCA Social has strong links to Topgolf:
TOCA’s co-chairman and CEO is Erik Anderson who was Topgolf Chairman when it merged with Callaway
Anderson is also the founder of West River Group, who is one of TOCA’s major investors
Swing Racquet + Paddle
In what has been labelled “The Disney World for Racquet Sports”, the world’s largest racquet sports facility is currently being built in North Carolina.
The $70 million, 45ha complex will feature:
29 tennis courts (including clay and hard)
24 pickleball courts
16 paddle courts
12 ping pong tables
4 beach tennis/volleyball courts
onsite physical therapy, sports medicine and sports science
This is another start-up with strong links to Topgolf - Ken May is the former CEO of Topgolf and sits on the advisory board.
Ken May looks to have similar new projects in the pipeline, including Jump Shot Inc, a tech-enabled basketball entertainment venue.
Home Run Dugout
A new baseball entertainment venue has launched in Texas.
The Home Run Dugout features:
· Full-service restaurant, three bars serving 20 craft beers
· 12 virtual-batting bays
· Live music and concert stage
· Dog park
Hitting the slopes and waves all year round…
Weather and geographic location are barriers to surfing and snow sport participation but thanks to some big investments and epic developments planned down under, these barriers are breaking down…
URBNSURF
URBNSURF opened in Melbourne in January 2020 on land owned and located near Melbourne Airport.
URBNSURF is Australia’s first surf park,
It was a $43m project
It sits on 5.4ha of land, the pool stretches across 2ha
The pool is divided into 4 sections categorized for beginners to elite surfers
The venue caters for more than just surfing and features cabanas, hot tubs, a dining area and multi-purpose event spaces. The “For The Love” music festival featuring FISHER was previously held here:
Following the success of URBNSURF in Melbourne, the second surf park is currently due to open at Sydney Olympic park in 2023.
With an expected cost of $55M to build, this surfing paradise will be similar to the size of the Sydney Cricket Ground, and will feature a cafe, rooftop bar, beach cabanas, skate ramps, lagoon pools and kids playground.
Once open, it's expected to attract up to 300,000 beginners and surf professionals per year.
Wisemans Surf Lodge
A $120M luxury surf-lodge is planned to be built on the Hawkesbury River in Sydney's North featuring:
A giant wave pool
54-room hotel
Restaurant, bar, conference facilities
9-hole golf course
This larger-than-life development, built on 45ha, and backed by pro surfers such as Steph Gilmore and Joel Parkinson, will be Australia's first premium resort-style wave pool.
It’s business model is quite unique:
Winter Sports World
A $400M ultra-futuristic indoor snow resort is planned for Western Sydney. Currently expected to open in 2025 and attracting 250,000 visitors annually, it will host
Olympic-sized ice-skating rink
300m ski run
Restaurant and 120-room luxury hotel
The evolution of connected sports
Although a different category to the above, connected sports products are also bringing greater entertainment to the sports experience using technology.
huupe - the world’s first smart basketball hoop
huupe tracks shots, gamifies performance, provides coaching and allows you to play basketball against other huupe users from your own backyard.
Its enabling feature is its AR-backboard that doubles as a TV-screen and gathers data about your shot trajectory, and the balls that you sink or miss.
huupe was founded as a side hustle:
Founded in 2015 and originally bootstrapped
Secured 1st ever outside funding last year - $3m
Secured a new round of funding recently - $11m
Much like Peloton, the product is premium and reflected in the cost":
Full package: $4995 - $6495
App subscription: $30 p/m
The hoop market
4m regulation hoops are sold globally every year
Ave price of a premium basketball hoop typically starts at $2,500
With the forever-growing trend of the “Internet of things” it wouldn’t be surprising to see more sports become “connected”.
The founders of huupe have already flagged expansion into sports such as lacrosse, soccer and hockey.
The opportunity for traditional sports organisations
Almost every sporting organisation is tasked with creating financial growth and increasing participation, and stretching into the Sportstainment start-up world appears to present a viable option to enable them to achieve these goals.
Traditional sports organisation have a wealth of competitive advantages that would put them in the box to do so:
Passionate fan bases
Access to capital
Access to elite athletes
Strong and credible brands
History has proven that these types of ventures can be quite lucrative, and act like a gateway to traditional sports, but although traditional sports bodies are in the perfect position to extend themselves into Sportstainment, entrepreneurs and start-ups are leading the way.
Watch this space.
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