Following the end of the football World Cup, a sporting phenomenon that manifests itself off the playing fields is coming into focus: top athletes are using their professional status to develop commercial real estate projects. Some of these ventures are taking place in the athletes' hometowns, adding a new segment to the ranks of real estate developers: the athlete-developers. This represents an exciting development in the property market.
Both active and former athletes from leagues such as the NBA and NFL are redefining themselves. They are acquiring the fundamentals of commercial real estate and establishing crucial industry contacts. They possess the potential to be catalysts for urban development – a contribution that can be as impactful as a pass from Jalen Brunson or A’ja Wilson on the pitch.
Prominent Examples and Engagement
An example is former NFL player Ndamukong Suh, who grew up in Portland, Oregon. Through his company HMS Development, he is developing a hotel and conference centre in his hometown. Former Chicago Bulls star Derrick Rose has also announced his involvement in a USD 7 billion mixed-use project on Chicago's Near West Side. Suh and Rose are examples of athletes who combine their financial capital with intellectual capital – meaning the knowledge that makes them active partners in development projects in their hometowns. Suh already holds a degree in civil engineering, while Rose is completing a one-year property study programme to learn the business fundamentals.
This phenomenon has not gone unnoticed in the industry. Troy Vincent Sr., Executive Vice President of Football Operations for the National Football League, welcomes the link between professional sports and commercial real estate. He lauded Project REAP, a national commercial real estate training programme, as an initiative that helps professional athletes and aspiring leaders recognise opportunities beyond traditional career paths. Vincent played a key role in supporting REAP’s collaboration with professional football.
Relationship and Financial Capital as a Competitive Advantage
In addition to financial capital and property knowledge, highly paid athlete-developers bring another crucial competitive advantage to community development: their relationship capital. This is expressed in the unique ability of local heroes and prominent athletes to mobilise political leaders, equity investors and even commercial tenants. This dynamic was observed, for example, in the development of an urban shopping centre in San Diego’s City Heights district over 20 years ago, an area then considered highly disadvantaged. Basketball legend Magic Johnson formed a partnership with Starbucks to establish branded cafés in inner-city areas. Although Earvin Johnson did not grow up in San Diego, he was familiar with ethnically diverse communities. Johnson’s team recognised the potential of the project in City Heights, which other restaurateurs might have rejected.
Officials in urban markets – mayors, economic developers, and legislators – should take note of this sporting phenomenon and encourage it by inviting top athletes to explore development opportunities in their jurisdictions. Unlike many conventional developers, entrepreneurial athletes who come from such communities recognise opportunities that remain hidden from others. This foresight, where others see excessive risks, is a kind of “birthplace effect” that can be of great importance for urban regeneration. The term “dumb athlete” prevalent in popular culture was always more fiction than reality. Roger Staubach proved this as early as the 1970s, decades later Emmitt Smith. Thus, this old stereotype belongs to the past. Many successful athletes are no longer content with passive product sponsorships – however lucrative these may be. Instead, they see the opportunity to effect impactful changes while preserving their wealth. We should keep this in mind when cheering for their next three-pointer or end-zone reception. They are more than just kinetic entertainers; they are potential commercial real estate entrepreneurs.
