Expanding Regulatory Limits
Catalyzing Global Sports Democratization
FanEQT's mission to democratize sports by fractionalizing stadiums and creating a liquid marketplace represents a groundbreaking approach to unlock the immense potential of the $100billion+ stadium/ballpark market1. By leveraging several SEC regulations including but not limited to Regulation A+ Tier 2 offerings, FanEQT aims to lower the cost of capital for team owners and governments, potentially by up to 5x, thereby enabling greater accessibility to sports ownership and fostering loyalty among fans.
The company's innovative platform, incubated at the MIT Media Lab and Harvard Accelerator, demonstrates its commitment to pioneering solutions in the sports industry. Through fractionalization, fans gain ownership in stadiums and access to premium perks, driving up engagement and revenue per fan. FanEQT's ARPU2 Maximizer further enhances fan engagement and sponsorship data, empowering teams to maximize monetization within their ecosystem.
FanEQT's regulated and automated platform provides a robust and secure offering 30x faster as compared to current options, thereby promoting investor confidence and market integrity while opening up global markets. By offering multi-faceted investment opportunities, for the fan community and for the accredited investors, FanEQT promotes broader, equitable participation in sports ownership.
However, the current annual limit of $75 million for retail investment using Regulation A+ Tier 2 limits the raise opportunity for retail investors. The bill introduced in Congress in April 20233 aims to up the limit to $150 million, which will not only facilitate easier fundraising for global stadiums but also increase ownership by a larger pool of fans, not necessarily accredited investors - a true democratization of the sports industry while maximizing ARPU benefiting the teams even more. Let’s disrupt and innovate the industry, provide the community an opportunity to own and brag! After all, it’s the fans that contribute largely to the operational ecosystem through their unwavering support and continuous spending on tickets, concessions, and merchandise.
Advocating for an increase in the Regulation A+ Tier 2 annual limits is crucial for supporting innovation and disruption changing the future of sports. By enabling greater access to capital, this initiative would foster expansion into new territories globally, empowering emerging sports and sports in emerging countries that often lack the financial resources to compete with the likes of major leagues. Overall, increasing the retail investment annual limit accelerates FanEQT's mission to democratize sports engagement through fractionalization or sports engagement through sports team ownership and premium perk access and drive positive change in the society.
1 Source: CNN: Why billionaire sports owners are snapping up so much real estate
The Impact of Professional Sports Franchises and Venues on Local Economies: A Comprehensive Survey
2 ARPU is defined as Average Revenue Per User
3 Senate Legislation Aims to Boost Cap on Reg A+, Expand Definition of an Accredited Investor