JP Morgan Chase Invests in Kraft Analytics Group Equity Stake

JP Morgan, the global leader in financial services, invested in a stake in Kraft Analytics Group.

JP Morgan Invests in a KAGR Stake

The global leader in financial services, JP Morgan Chase & Co purchased a stake in KAGR (Kraft Analytics Group) a technology and services company focused on data management. KAGR is owned by Robert Kraft, and the company has been a part of the sports and entertainment industry for more than 15 years. Currently, the company powers key industry clients, as well as major US sports leagues and college athletics. With the help of its proprietary technology and key partnerships, KAGR helps companies utilize and use data for their benefit. In other words, the data which the company provides is vital for companies that are interested in better understanding and serving their customers.

This may be one of the prime reasons why JP Morgan decided to invest in a KAGR stake. In addition, JP Morgan brought in KAGR last year when Kraft was advising a group led by MLB All-Star Alex Rodriguez. At the time, Rodriguez was submitting a bid to purchase the New York Mets. Although the bid failed, JP Morgan executives liked what KAGR had done and decided to continue to use its services.

With the help of unique data derived from ticket sales and sports betting, the company gains the upper hand when representing wealthy individuals. Furthermore, that data may come in handy when JP Morgan is looking into sports teams acquisitions. JP Morgan’s private lending service provides investable assets of more than $ 5 million and advises owners on buying and selling teams. Vincent La Padura, the company’s head of lending, asserts that the firm is increasingly listening to customers interested in getting some of its major sports teams.

Kraft’s Strong Ties to US Sports

Currently, KAGR collaborates with more than 20 clients. Among the high-profile clients of the company, we find college athletic organizations, the National Football League (NFL), as well as major American sports league teams. In addition to being the owner of KAGR, Kraft is also the owner of the NFL’s New England Patriots and the New England Revolution of Major League Soccer, as well as Gillette Stadium, the home field for both teams. Kraft has a hand in eSports, too, as owner of the Boston Uprising. Those ties will give KAGR and JP Morgan additional reach as sports gambling continues to expand across the US.

“The biggest thing we realized is everyone who buys a sports team initially, they’re very focused on the field.”

Robert Kraft, Owner, Kraft Analytics Group

Kraft, who was recently quoted by the Wall Street Journal, revealed that many of the people who are buying sports teams are “focused on the field.” He added that, although few of the investors prioritize the business side, it “really helps to do that.” With the deal, JP Morgan became KAGR’s first strategic investor. However, neither of the companies has disclosed financial details regarding the recent transaction.