Evolution Media, the investment firm co-founded by talent agency Creative Artists Agency, has led a $20m round for online sports media company The Athletic, the Wall Street Journal has reported.
Bertelsmann Digital Media Investments (BDMI), a strategic investment arm of media group Bertelsmann, also participated in the round, as did over-the-top media company Chernin Group and Courtside Ventures, an investment vehicle backed by marketing agency WPP.
The investor list was completed by Luminari Capital, Advancit Capital, LionTree Partners, Amasia, Y Combinator, Precursor Ventures and private investors Chris Silbermann and Ali Rowghani. Evolution Media was formed by CAA and private equity group TPG.
Athletic has created an online media platform that offers long-form writing about North American sports, securing big-name writers by offering larger salaries and in some cases an equity stake in the company. It is ad-free and generates revenue through subscriptions.
The funding will enable the company to double its headcount and expand its local presence from 23 cities to 45 in a bid to establish a foothold in every urban market in the US or Canada that has a large sports team.
Athletic also plans to increase coverage of association football, which would boost interest in Mexico. It has a six-figure subscriber base, with subs starting at $8 per month, and is considering sponsorship deals and tie-ins with local media operators.
Alex Mather, the company’s co-founder and CEO, told WSJ: “What we have learned over the last couple of years is there is an appetite for high-quality coverage, whether it is local or national.”
The round took Athletic’s total funding to about $30m, according to the WSJ. It raised $2.3m in seed capital from BDMI, Courtside Ventures, Advancit Capital and Luminari Capital in January 2017, before adding $5.4m from undisclosed investors six months later.