IMAGE CREDIT: LAKEPOINT SPORTS

Capacity Sports Group Went From LakePoint Tenant to LakePoint Owner

Capacity Sports Group now owns LakePoint Sports, the multisport campus outside Atlanta. On October 14, Capacity Sports Group (CSG), a youth sports company formed in January by merging Prep Baseball and Bullpen, announced that it "now owns the 78-acre property comprising the Baseball Village and Publix Fields and holds a lease to operate the Champions Center" at LakePoint Sports in Emerson, Ga. Sports Business Journal (SBJ) reported the same day that CSG acquired 100% of LakePoint Sports and that "financial details were not available."

Most of the coverage treated the deal as another add-on for an active buyer. The detail that explains it better is the gap between the purchase and the strategy CSG's own chief executive describes. CEO Ken Kocher told SBJ he expects CSG to remain an asset-light business with a preference for facility operating agreements over acquisitions. LakePoint is one of the cases where CSG chose to buy anyway, and it arrives with no price, no named owners and no public terms for the county-owned building that comes with it.

What CSG Bought

Per CSG's release, the Baseball Village has eight major-league-sized synthetic turf fields, the 170,000-square-foot Champions Center can fit 12 basketball courts or 24 volleyball courts, and Publix Fields has three multi-use turf fields. Prep Baseball has run tournaments at LakePoint since 2019, by CSG's account, so the buyer was a long-standing tenant of the campus before it became the owner.

SBJ reports the deal came together in two steps. The land acquisition closed in the spring, and the agreement covering the Champions Center, which Bartow County owns, was finalized in September. CSG's release describes that arrangement as a lease, and SBJ calls it an operating agreement. Neither source gives the rent, the length of the term or any revenue share, so it's unclear how much of the indoor pavilion's economics CSG actually keeps.

The seller was Rimrock Capital Management, which has owned the property since 2018. SBJ reported that the sale to CSG was led by former LakePoint Sports president and CEO Mark O'Brien without the assistance of an investment bank. Under O'Brien, LakePoint Sports tripled its visitors to more than three million a year, according to SBJ. He left LakePoint Sports as part of the transaction but remains president and CEO of Rimrock-owned LakePoint Land, which is selling real estate parcels next to the sports campus.

"Our goal was to establish a growth business and find the right buyer with the vision and expertise to propel LakePoint to the proverbial next level," O'Brien told SBJ.

Most of LakePoint's staff was retained, SBJ reported, with some departures due to duplicate roles. The company has around 20 to 25 staffers.

Who Is Paying for It

CSG shared that it raised additional capital through the merger and is now "a well-capitalized company that has the ability to rapidly grow." SBJ also noted that private equity firm AEA Investors lists CSG within its private debt portfolio. A private debt listing describes a lender relationship rather than an ownership stake, and neither CSG nor SBJ says whether AEA's debt financed the LakePoint purchase.

CSG has been acquiring steadily since the merger, including Flag Football Life parent company United Sports and Philadelphia-area sports complex YSC Sports. Youth Sports Business Report (YSBR) counts eight acquisitions since January, and Kocher told SBJ that CSG will likely soon announce the acquisition of a volleyball brand. On October 21, YSBR reported, CSG named former Ripken Baseball CEO Mike Kenney its chief revenue officer.

Six Sports on One Campus

Kocher told SBJ that LakePoint supports CSG's entry into flag football, lacrosse, soccer and volleyball, alongside its established baseball and softball business, and that CSG already had a team on site managing the complex.

"Capacity Sports Group is not just going to be a baseball company. Right now our primary focus is on six sports, and all of them fit perfectly into LakePoint."

He was just as direct about why CSG doesn't plan to repeat this kind of deal often.

"Our strategy is not to go buy every facility in the country," he said. "We'll do it strategically when it makes sense, like LakePoint, but we prefer to bring our brands and our wherewithal on how to run a facility to a complex that is already built or going to be built and do a lease or management agreement."

That puts LakePoint on both sides of the model. The Champions Center follows the playbook Kocher describes, with CSG running a building someone else owns. The 78 acres don't. Asked about saturation in the market, Kocher told Buying Sandlot on October 19, "We're not even close."

Takeaways for Investors

The Price Stayed Private

SBJ reported that financial details weren't available, and CSG's release carries no figure. With no price on the record, there's no public way to compare what CSG paid with the campus's reported three million-plus annual visitors.

The Capital Behind CSG Is Unnamed

CSG's owners or backers have not been named. The only outside marker is AEA Investors' listing of CSG in its private debt portfolio, which says the company carries debt from AEA but not how much, or whether it funded this deal.

The County Building Runs on Undisclosed Terms

The Champions Center is owned by Bartow County and operated by CSG. The rent, term and revenue share haven’t been shared, and those terms will shape what the indoor pavilion contributes.

Watch the Volleyball Deal

Kocher said a volleyball brand acquisition is likely soon, and the Champions Center can hold 24 volleyball courts by CSG's count. That announcement will show whether LakePoint is meant to anchor CSG's push into new sports.

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