Ryan Smith, owner of the NBA’s Utah Jazz and NHL’s Utah Hockey Club, has launched a $1 billion investment firm specializing in tech startups operating within sports and entertainment with Ryan Sweeny, a partner at private equity firm Accel.
The fund, named HX One LP, will be housed under a corporate entity called Halo Experience, which will not officially be tied to Smith’s sports business, Smith Entertainment Group (SEG).
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It will invest in growth-stage startups where tech meets sports and other experiential sectors. It will be headquartered in Utah and plans to expand its investment team.
According to a US Securities and Exchange Commission filing, a significant amount of the $1 billion funding has already been secured, with Accel providing back-office services to support the fund.
The global sports technology market is projected to grow from $14.7 billion in 2023 to $55 billion by 2030.
Smith and Sweeny are long-time investment partners dating back to 2012 when Sweeny led Accel’s investment in experience management company Qualtrics, co-founded by Smith and eventually sold for $8 billion before it was taken private again at $12.5 billion.
Accel’s other tech investments include Facebook, CrowdStrike, Dropbox, Slack, Spotify, and Squarespace.
Sweeney is also an investor in Smith’s Utah Jazz and Utah Hockey Club.
Speaking to Front Office Sports, Sweeney said: “Sports effectively touches all parts of our economy.
“Think about the intersection of digital media, of social media, payments, security, health, and wellness, the list goes on and on. All the big markets we talk about, whether it be investing or just broadly speaking in terms of the economy, all have a role and all play a part within the sports ecosystem.”
Along with the Jazz and Utah Hockey Club, Smith also co-owns North American soccer’s Real Salt Lake (RSL) – of the men’s MLS – and Utah Royals – of the women’s NWSL – with investment tycoon David Blitzer.
The news comes shortly after it was reported that Blitzer is in late-stage discussions to sell a controlling stake in RSL and Utah Royals to the Miller family, former owners of the Jazz.
A source said if the sale goes ahead, Smith will not be involved in the two soccer clubs going forward.
The Miller family sold its majority ownership of the Jazz to Smith’s SEG in October 2020, initially retaining a minority stake in the NBA franchise, but that was also bought by Smith a year later.
