Robert Kraft's sports analytics firm already has more than 20 clients, including teams in all five major U.S. pro sports leaguesGetty Images
KAGR, the sports analytics firm spun out of Kraft Sports & Entertainment strategy division, has brought on J.P. Morgan Chase & Co. as its first external investor. Though financial terms were not disclosed, the deal highlights the growing value of data generated by the sports and entertainment industry through gambling, ticketing, merchandise sales and media. J.P. Morgan said that it will tap KAGR’s technology to make better lending decisions and advise clients in sports or interested in entering sports. “We are proud to partner with J.P. Morgan, one of the largest and most-respected brands in the financial world,” Kraft Group Chair & CEO Robert Kraft said in a statement. “KAGR has become a leader in using analytics to help companies identify their customers and speak to them more directly. We look forward to working with J.P. Morgan to utilize their expertise in expanding the reach and scope of KAGR’s data integration and technologies.”
GROWING FAST: KAGR, a subsidiary of the Kraft Group, has more than 20 clients, including On Location and teams in all five major U.S. sports leagues. Its recurring revenue/software-as-a-service revenue model and track record of strong growth makes it a prime candidate for external investors. In October, KAGR CEO Jessica Gelman told SBJ the company did not “need to do deals” for growth or working capital, but is “always open to synergistic strategic partnerships.” J.P. Morgan’s Sports Finance Group will leverage the data and technology held by KAGR to better advise clients in need of customized financing for team acquisitions, venue construction or working capital. “Sports ownership is capital intensive, and specialized analytics are essential to the deal-making process. KAGR has the technology and the all-star team to help the industry make informed decisions,” said Mary Callahan Erdoes, CEO of J.P. Morgan Asset & Wealth Management.
For more on the history of KAGR’s growth from inside the Patriots to major player in analytics, read SBJ’s profile of the company from October '20.
