Explaining youth sports real estatefrom @dominyckb

Transcript

No proud of it. Man enough to say a parents would trade their kids childhoods to send them here. And most of you don't know this, but these sports monasteries are just getting started. Before I give you the sauce as to why these businesses are going to become monsters over the next ten years, I want you to ask yourself this simple question. Who wants to go visit Hoover, Alabama in the middle of July? Nobody. Yet Perfect Game gets thousands of families to do it every summer on demand. Now tier reason this all works is because of something known as the sports destination monopoly. What I mean by this is that elite destinations are greater than geographical location. Again, nobody under the age of 75 is saying to themselves I want to move to Bradenton, Florida. But they do want to go to IMG academy to have access to the best network and training and nutrition on the face of the earth to become world class athletes. No, over the next ten years, as these things continue to explode, the secret weapon here is rural land. The example I'm going to use is Perfect Game's Hoover, Alabama location. The farmland that it would generally be on is roughly $4,500 an acre which is ridiculously cheap. That means you could basically get two tier acres for 1,100,000. And then no add on maybe an extra $5 -six million no in development costs. Now you start actually bringing in athletes. Think $30,000 a year for tuition, dollars 15,000 for food and board, and then another $10,000 in training fees. If you can get 200 athletes a year doing this, that's $11,000,000 in revenue. Dollars 500 athletes and you're at $27,500,000 And this is before camps and tournaments too. And really, there's three trends colliding all at once that are going to make this possible. Youth sports spending has never been higher. Parents are increasingly treating sporting like education. And remote locations matter significantly less when the student is boarded full time. Modern parents aren't asking is this close to home, they're asking if it's going to get them onto a division one roster. Thus, we have the sports monastery, where kids go to be enlightened about the harsh reality of making it in professional sports. And worst case scenario now, you can explain to your wife why you spend so much time looking at remote land plots. As always, let me know down in the comments what you think about this. And if you wanna know where all the smart money is moving into sports, make sure to follow for more.