This week, we’re delighted to welcome Marcos Galperin to the show. Marcos is the founder of Latin American e-commerce giant Mercado Libre. Last year, he bought the Miami Sharks, a Major League Rugby expansion franchise, combining a lifelong passion for the game with asset ownership in a high potential league and market.
There are some crazy numbers in the world of sports valuations, and the opportunity to identify value where it is not yet maximised is becoming increasingly hard. Can rugby make it in the US? Hosting the 2031 Men’s Rugby World Cup is a huge opportunity to build community and engagement in the sport, but a strong domestic league needs to underpin the temporary arrival of a major tournament, and that is what Marcos is looking to help create in Miami.
Understanding the motivations of owners is crucial to helping fans establish a deep relationship with their teams. This is the story of why Argentina’s richest man went all in on franchise rugby. We’re delighted to welcome Marcos to the Business of Sport.
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Timestamps:
(00:00) Intro
(00:42) Why Marcos Decided to Buy a Sports Team?
(04:20) Is Owning a Sports Team a Smart Investment or Just Passion?
(10:58) The Revenues of Owning Miami Sharks
(12:43) The Biggest Revenue Driver Today
(14:09) Competing in the Attention Economy
(16:54) The Biggest Costs
(18:11) How Does Marcos Attract Top Players to a New Rugby Team?
(22:21) Can Building Player Brands Boost the Miami Sharks?
(27:17) What Knowledge Would've Helped Before Buying the Team
(31:25) Do Short-Term Sports Hits Lead to Sustained Interest?
(34:57) Is Private Equity in Sports Beneficial or Detrimental?
(37:16) Quick-Fire Round
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In today’s show we discuss:
1. Rugby in the US:
- Why the 2031 Rugby World Cup taking place in the US is a huge opportunity to build a strong community required to sustain attention on the game.
- Major League Rugby is an emerging league with increasing potential to challenge more established sporting organisations in the country; what needs to happen to grown the league?
- What are the key revenue drivers behind teams in the league? Does the league negotiate and broker deals or do franchises have the opportunity to do so at a local level?
- Miami Sharks has a strong South American following and community. Who are they fans? What do they want to see when they go to games?
2. Running a franchise:
- What is the cost of entry to buy an expansion franchise in Major League Rugby?
- Sports ownership can often be an ego play rather than financially driven business endeavour. What was the motivation behind Marcos purchasing the team?
- It is crucial to form an identity to be able to take out to market and sell to partners looking to work with you. How have Miami done this to build a roster of sponsors many MLS and NFL teams would covet?
- How important has it been to have the right people in place behind the scenes to execute the vision of the ownership?
- MLR has a salary cap to ensure overspending and subsequent financial mismanagement can’t happen. Is this good or bad?
3. The global profile of rugby:
- Why the need for a global league aligned to the international calendar has never been greater.
- There are not many global stars in rugby, and rugby clubs need to encourage their players to build and leverage their brand to boost the sport as well as the wider ecosystem.
- Riding the Miami wave; how the growth of Inter Miami and the ‘Messi effect’ has created a buzz in the area to take advantage of.
- What would Marcos do if he was in charge of World Rugby?
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