Mellody Hobson on Investing in Women's Sports, Partnership, and Leadership

Mellody Hobson's Investment Philosophy

• 💡 Mellody Hobson, co-CEO of Ariel Investments, discusses her firm's new fund, "Project Level," focused on investing in women's sports.
• 🎯 Ariel Investments, a minority-owned firm, has a history of investing in undervalued, small-cap companies with growth potential, a strategy now applied to women's sports, which she likens to the "small caps of sports."
• 📈 Hobson highlights the significant growth trajectory in women's sports, citing rising attendance, sponsorships, and media rights, with a notable example being the NCAA women's finals viewership surpassing the men's.

Strategic Partnerships and Leadership

• 🤝 Hobson emphasizes the success of her co-leadership with John Rogers at Ariel Investments, attributing it to complementary skills, mutual respect, and genuine affection.
• 🧠 She learned the importance of asking insightful questions rather than making statements from her board experience, particularly her strategy of sitting next to Howard Schultz at Starbucks board meetings to observe his reactions and learn.
• 🚀 The "Project Level" fund is led by Jason Wright, former president of the Washington Commanders, bringing significant operational expertise.

Investing in Women's Sports

• ⚽ The fund's strategy includes three buckets: major league sports team ownership (like the Denver NWSL expansion team), emerging leagues, and ancillary businesses that benefit from women's sports growth.
• 💰 The Denver NWSL expansion team saw rapid success, selling 5,200 season tickets in three days, exceeding projections and demonstrating strong market demand.
• 🌟 Hobson believes women's sports teams are undervalued compared to men's teams, presenting a significant opportunity for growth and value creation.

Lessons from Athletes and Mentors

• 🏎️ Formula 1 driver Lewis Hamilton taught Hobson the importance of positive self-talk, choosing not to use the word "can't," and maintaining extreme discipline.
• 🏀 Former NBA player Bill Bradley advised Hobson against being a "ball hog" in business, teaching her to focus on others and ask questions to foster collaboration and avoid dominating conversations.
• ⏳ Drawing inspiration from Warren Buffett, Hobson values time over money, emphasizing the importance of a blank calendar and learning to say "no" to opportunities that don't align with her core focus.

Key Investment and Deal-Making Insights

• 🚗 The investment in the Denver Broncos was influenced by a personal connection and the potential to integrate financial literacy initiatives for athletes.
• 🤝 Hobson values integrity and shared vision in partners, citing her positive experience with the ownership group of the Denver Broncos, including Rob Walton.
• 💡 In deal-making, Hobson prioritizes long-term vision and gut feeling over data alone, and advises against making important decisions based solely on money.