X Games, the iconic action sports property, has sold its third winter X Games League franchise, with an investment group led by local entrepreneur Jonathan Turner acquiring its Bay Area/Lake Tahoe-based outfit, X Games Club Golden State.
The deal will see the group of investors, led by Turner, assume ownership of XC Golden State, which will compete in the winter season of the X Games League launching next year.
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Along with Turner, the investor group includes a coalition of Bay Area entrepreneurs, investors, creators, and action sports enthusiasts that plan to build a club that “reflects the pride, passion, and competitive spirit of Northern California.”
Turner said: “We aim to showcase the talent of the exceptional X Games athletes and bring the excitement and passion for action sports to fans around the world.
“The Bay Area and Lake Tahoe have been central to the development of action sports, and it’s essential that the communities of Northern California have their own team to support.
“We represent those pushing the boundaries and creating sports history.”
The Bay Area and Lake Tahoe team represents a coup for X Games, with the region serving as a hub of winter sports in the US due to its mountain terrain, resorts, and professional athletes.
The X Games League will hold its first winter athlete draft on September 16 in Los Angeles in preparation for next year’s inaugural season, which will feature skiing and snowboarding disciplines.
Jeremy Bloom, chief executive of X Games, added: “From the mountains of Lake Tahoe to the innovation and creativity of the Bay Area, few regions have had a greater influence on the athletes, brands, and culture that define our industry today.
“We’re thrilled to welcome Jonathan and the entire Golden State ownership group as we continue building the future of the X Games League.”
The sale brings X Games a step closer to selling out its entire inventory of teams to private investors, having already secured owners for all six of the available summer and winter teams put to market.
The new deal is for just one Bay Area/Lake Tahoe-based winter team, despite two previous US deals covering a pair of summer and winter teams.
X Games initially announced four pairs of teams would be sold – summer and winter teams based in US cities New York and Los Angeles, as well as Sao Paulo (Brazil), and Tokyo (Japan).
However, last month, X Games sold a single Sao Paulo-based summer team to investment vehicle Summit Ventures and confirmed to Sportcal that the final winter team available to acquire could be based in any market.
The first pair of franchises, the New York City summer and winter teams, were sold to sports investment firm UNA Sports Group in May, while the Los Angeles (summer) and Park City (winter) franchises were acquired by private equity investor Allen Thorpe last month. Both deals were “eight-figure transactions.”
The final two summer and winter franchises in Tokyo, Japan, have not been put on the market due to XGL’s title sponsor, cryptocurrency exchange platform Moonpay, having an option to buy one winter and one summer franchise as part of its agreement.
However, should the option expire, the franchises will be put on the market.
Speaking to Sportcal last month, Bloom said bringing in new franchise owners would help accelerate the commercial value of the league, with well-known investors bringing their wealth of experience.
He said: “I think for a long period of time, if not the entire period of time, action sports was controlled by a relatively small group of people and we think to grow these sports and get kids involved in action sports and grow more fandom with casual fans and not just endemic fans, we need a bigger ecosystem of people that care and have an interest in really growing this.
“And what’s so exciting is that we have these incredibly well-capitalized groups of people who otherwise wouldn’t care about action sports, our athletes, and the X Games, and now have a deep financial interest in growing these, and they’re building their staffs, marketing functions, and brand funding.
“All these new ecosystems are doing their own sponsorship deals and bringing in new commercial partners, and that’s feeding into the value of the teams and league.”
The new ownership deal comes shortly after the X Games concluded its debut summer season, which featured three stops in Sacramento, California (June 26 to 28) and Chiba, Japan (July 4 and 5), with the season ending with the New Orleans Championship, where the team with the highest cumulative score across the season will win the title and be awarded a $500,000 team prize.
The X Games announced its new league concept last September, which it hopes will provide athletes with more structure, visibility, and earning opportunities.
In January, X Games secured MoonPay as the title sponsor for the league under a three-year deal, with the league renamed MoonPay X Games.
Alongside Moonpay, XGL now features a broad roster of big-name sponsors led by founding partner Monster Energy, the energy drinks company, with the league securing an automotive partner Jeep, betting and streaming partners Stake and Kick.com, technology partners Amazon, Google Cloud, and Anker, and several food and drink partners in BeatBox Beverages, 805 Beer, Pacifico, Kraken Rum, High Noon, Factor, and TinCup Whiskey.
Other official partners include the US Army, Polaris, Bobcat, and iHeartRadio.
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