Patel defines wealth not by net worth, but by purchasing power. He outlines a hierarchy where being "wealthy" means you can afford one pro sports team. True "capital W" wealth means you can buy multiple teams, have them fail, and still have enough money to keep buying more.

Sixth Street's sports strategy views iconic teams like FC Barcelona or the New York Yankees as global consumer brands, not just local franchises. This "local to global, enabled by technology" lens opens up investment opportunities based on brand value and consumer reach, moving beyond traditional sports team valuation metrics.

To grow a sports franchise's value, owners must heavily invest in the fan experience and player talent. Magic Johnson's group spent hundreds of millions on stadium upgrades for the Dodgers. This upfront spending drove higher revenues and caused the team's valuation to skyrocket, proving the investment thesis.

High-profile sports franchises defy standard financial analysis. Their valuation is driven more by their scarcity and desirability as a "trophy asset," similar to a masterpiece painting. This makes them a store of value where the underlying business fundamentals are only part of the equation.

The investment thesis for teams like the Atlanta Braves or MSG Sports (Knicks/Rangers) hinges less on financial analysis and more on their status as "publicly traded collectibles." Their value is driven by scarcity and the ego-driven demand from billionaires who desire the prestige of ownership, making them a unique diversifier.

Madison Square Garden Sports, owning both the Knicks and Rangers, trades at an enterprise value of ~$6B. Given the Lakers sold for $10B, the market effectively values the Rangers at or below zero. An activist idea is to split the teams into two separate public companies to unlock this hidden value.

Certain "trophy assets," like major league sports teams, defy traditional valuation metrics. Their true worth is determined not by their cash flow, which can be modest, but by their extreme scarcity and the price a private acquirer is willing to pay for the prestige of ownership, as seen in private market transactions.

The scale of wealth creation in franchising is vastly underestimated. A surprising statistic reveals that the franchise business model has produced more millionaires than the total number of players who have ever participated in the NFL, highlighting its power as a consistent, repeatable path to wealth.

The motivation for buying a Formula 1 team is not financial return but the acquisition of an unparalleled personal brand and networking tool. Like owning a major league sports team, it instantly redefines one's public identity and provides access to an exclusive global elite, a value that "you can't put a price on."