In an increasingly saturated entertainment landscape, the pressure on sports clubs or franchises to innovate and retain fan interest has never been higher. This is the sentiment of Alan Waxman, Co-Founding Partner and Chief Executive Officer of Sixth Street. Waxman was formerly a Partner at Goldman Sachs and Chief Investment Officer of its largest proprietary investing business before starting his own business venture. Sixth Street has long been a partner of Real Madrid and are financially tied to Real Madrid’s success via the new Santiago Bernabeu non-matchday revenue.
In an interview with the Financial Times, Waxman emphasized the critical need for sports organizations to continually create engaging experiences for their audiences, particularly the younger demographic. “There are more and more forms of entertainment that people, especially younger demographics, can consume,” he noted. The stakes are high, as failing to innovate can lead to a gradual loss of core supporters. “If you don’t create more drama…you can start to lose the core and once that starts, it’s hard to get people back in. That’s why the best businesses innovate before that happens.”
The executive further compared clubs that fail to adapt and invest in their business and fan experiences to “melting ice cubes because they don’t do the right things from a business and fan perspective and they don’t invest in the experience.”
Amidst these challenges, there’s a silver lining through the use of new technology. Clubs now have the opportunity to engage their massive global fan bases, moving beyond traditional revenue streams like ticket sales and television deals. The CEO underscored the importance of modernizing infrastructure, including stadium upgrades, to enhance fan experiences. Citing Real Madrid and Barcelona’s significant investments in their stadiums as exemplary moves, he highlighted how these initiatives serve not just as upgrades but as central hubs for fan gatherings.
Given Alan Waxman’s quotes and close ties to the football world, and in particular Florentino Perez, it is no coincidence that the two share a similar perspective. Alan Waxman would no doubt be a propenent of a European Super League and believes fundamental reform is required to retain and engage audiences.
