Move Represents Transformation of X Games Platform Following MSP Sports Capital Acquisition
June 13, 2024 – New York, NY – X Games, the leading action sports competition for 30 years, will introduce a bold, new global, team-based format in 2026. Backed by MSP Sports Capital (MSP), a Najafi Cos. portfolio company, the X Games League (XGL) will provide a year-round international competition calendar for X Games that will enable athletes to earn compensation beyond the $2.4 million already awarded through existing prize purses.
“In essence, we’ve used Formula One as a model for this new X Games League,” said Jeff Moorad, Executive Chairman of X Games and Principal of MSP Sports Capital. “To that end, we are creating a year-round calendar and introducing new commercial opportunities to accelerate the overall growth of X Games. These opportunities will provide a secure and sustainable future for our most important stakeholders – the athletes. By leveraging the incredibly valuable X Games brand, we will create a durable, global business that will be good for athletes, fans, investors and sponsors.”
Teams will be a vital component of the new XGL and will be composed of athletes from multiple disciplines who will compete for individual and team points to earn both individual and team prize purses.
MSP and X Games will secure investors for these new teams. Team investors and XGL athletes will have a platform from which to build and generate additional revenue streams via sponsorships and team-specific merchandise. In an industry first, XGL athletes will be provided with a level of stability that includes guaranteed compensation as well as new commercial opportunities.
X Games will continue to embrace the seasonal nature of action sports, introducing both a Summer XGL and a Winter XGL – each initially composed of four global events and a minimum of four teams, with plans to grow from there. The competition schedules will include X Games signature events as well as strategic collaborations with existing competitions.
“The athletes have always been at the heart of X Games,” said Scott Guglielmino, President & COO of X Games. “This new consistent league and team structure will provide more opportunities for athletes to compete and thrive commercially, and their fans will have more opportunities to see and support their favorite athletes and teams year-round. We’ve been developing this since MSP invested in the property and key stakeholders throughout the industry, including athletes, have been very supportive.”
Added Scotty James, X Games strategic advisor and nine-time medalist, “As both an active athlete and an advisor for X Games, I’m excited about the opportunities this new format presents. The long-term vision not only aims to grow action sports on a global level, but also provide athletes with greater security than ever before. For the first time, we will be able to focus on performance while benefiting from a stable and sustainable career path in action sports.”
In addition to James, X Games current investors include two-time Olympic Gold Medalist and seven-time X-Games Gold Medalist Chloe Kim, Grammy Award-winning producer and DJ Diplo, and gaming superstar Ninja. X Games has already seen significant audience growth under MSP leadership in the past 12 months, including 113% growth in streaming audiences and 1.6 million new social followers.
Advising X Games in the league formation is international law firm Proskauer Rose LLP – the leader in representing both well-established and emerging sports leagues, teams and investors worldwide. MSP Sports Capital assumed ownership of X Games in October 2022, with ESPN retaining a minority share.
About X Games
Since its inception in 1995, X Games has been the leading action sports competition and lifestyle brand, spotlighting the world’s best action sports athletes against the backdrop of each individual host city. Over the past 29 years, X Games has organized the world’s premier action sports events around the globe, complemented by top musical performances, year-round content and fan experiences.
About MSP Sports Capital
MSP Sports Capital is a global private equity firm that invests in teams, leagues, and other businesses in the sports ecosystem. The firm pursues influential positions in mature sports companies and focuses on creating value and driving differentiated returns. MSP Sports Capital was founded by veteran investor-operators, Jeff Moorad and Jahm Najafi, whose expertise span the world's largest sports leagues, including MLB, NBA, NFL, F1, and European football. MSP Sports Capital is headquartered in New York. For more information, visit www.MSPsportscapital.com.
About The Najafi Companies
The Najafi Companies, based in Phoenix is an entrepreneurially driven private investment firm founded by Jahm Najafi in 2002. The firm makes investments across industries, with significant holdings in consumer brands, ecommerce, media, technology and sports. For more information, visit www.najafi.com.
Contacts:
X Games/MSP Amy Phillips amy.c.phillips@icloud.com
Grace Coryell grace.coryell@xgames.com
Najafi Companies Megan Wahl najafi@lavidge.com