Startup firm Home Court Capital has announced plans to use machine-learning techniques to identify sports stars of the future whose earning potential it can eventually cash in on.
The company is propped up by an initial US$150 million in funding which it will put towards early-career athletes in the US major leagues to accelerate their income and help provide them with greater financial security and flexibility.
Home Court Capital will essentially provide young athletes with an upfront cash payment in return for a fixed percentage of their future salary and other revenue such as endorsement deals. The company added in a statement that there are no repayment obligations in the event an athlete does not go on to generate sports-related income.
Using a quantitative approach that combines big data analytics and machine-learning techniques, the company said it wants to identify athletes who will outperform their peers as their careers advance – especially late bloomers whose rookie statistics would not necessarily point towards stardom.
“Home Court Capital is proud to bring a new approach to investing in the sports industry by bringing capital directly to the athlete,” said Peter Gourdine, president of Home Court Capital and the son of former NBA deputy commissioner Simon Gourdine. “Our team of experts in sports, quantitative investment strategies, finance and law, offer investors and athletes alike a strong program, designed to mutually benefit all parties involved.”
Home Court Capital will also play an advisory role, helping athletes assess marketing and endorsement opportunities that can maximise their earning potential.
Gourdine, who also had a 12-year career in the NBA, added: “Athletes who partner with Home Court Capital will be entering into a relationship built on more than just financial returns. We believe in the importance of an athlete’s professional relationships, and our investment process is designed to support those relationships.”