Mellody Hobson on Investing in Women's Sports, Team Building, and Leadership Lessons

The Genesis of Ariel Investments

• 🤝 Mellody Hobson and John Rogers have led Ariel Investments as co-CEOs for years, fostering a partnership built on mutual respect, complementary skills, and deep affection.
• 💡 Hobson emphasizes their shared goal of achieving the best for Ariel, which has enabled them to overcome any differences.
• 📈 Ariel Investments, one of the oldest minority-owned firms, focuses on undervalued, small to medium-sized companies with strong growth potential.

Strategic Entry into Sports Investing

• 🏈 Ariel Investments has a history of sports-related investments, including Madison Square Garden and Manchester United, viewing them as media businesses.
• ⚾ Mellody Hobson personally invested in the Chicago White Sox and the Denver Broncos, initially keeping these ventures secret to avoid confusion with Ariel.
• 🚀 The firm launched "Project Level," a dedicated fund for investing in women's sports, recognizing its significant growth trajectory.

The "Small Caps of Sports" Opportunity

• 📊 Hobson likens women's sports to the "small caps of sports" due to their lower current valuations ($250 million for the most valuable team) compared to men's teams (e.g., Dallas Cowboys at $11 billion), indicating substantial growth potential.
• 📈 Key indicators for women's sports growth include rising attendance, sponsorships, media rights, and increased participation among young girls.
• ⚽ The expansion of the Denver NWSL team exemplifies this opportunity, with 5,200 season tickets sold in three days and sponsorships already secured.

Building a World-Class Sports Team

• 🌟 Jason Wright, former president of the Washington Commanders, was recruited to lead Project Level, bringing significant operational expertise.
• 🤝 Hobson highlights that leagues actively seek gender and racial diversity in ownership, creating an advantage for Ariel.
• 💡 The firm's ability to provide resources at scale and operational excellence is highly valued by sports entities.

Leadership and Personal Growth Lessons

• 🏎️ Mellody Hobson's friendship with F1 driver Lewis Hamilton has taught her invaluable lessons in resilience, positive self-talk, and the importance of language (e.g., choosing "choose not to" over "can't").
• 🧠 She learned from Hamilton the discipline of never giving up and maintaining a positive mindset, even in the face of adversity.
• ❓ As a board director, Hobson emphasizes the importance of asking original questions rather than making statements, embodying a "learn it all" rather than a "know it all" approach.
• ⏳ Drawing inspiration from Warren Buffett, Hobson values time over money, advocating for a blank calendar and learning to say "no" to opportunities that don't align with her core focus.
• 🏀 Bill Bradley's advice to not be a "ball hog" taught Hobson the importance of taking an interest in others first and asking questions to avoid dominating conversations.