The X Games, a global leader in action sports, officially announced the sale of X Games Club (XC) São Paulo to Summit Ventures on June 25, 2026. This transaction represents a pivotal moment in the strategic rollout of the MoonPay X Games League (XGL), marking a significant expansion into the South American market. Summit Ventures, a United Arab Emirates-based investment vehicle led by entrepreneur and action sports advocate Ali El Ali, acquired the club as part of a broader mission to bridge the gap between emerging markets and established action sports territories. This acquisition follows a series of high-profile ownership announcements that have defined the lead-up to the league’s inaugural season, signaling a shift from a traditional event-based model to a permanent, franchise-driven global league.
The deal integrates the financial backing of Middle Eastern private capital with the cultural heritage of Brazilian action sports. As part of the transition, Brazilian skateboarding icon Bob Burnquist has been appointed as the General Manager of XC São Paulo. Burnquist, whose career spans three decades and includes a record-breaking 30 X Games medals, will oversee the club’s operations, talent scouting, and community engagement. The advisory roles for the transaction were handled by Magellan Capital, a Dubai International Financial Centre (DIFC)-based firm representing Summit Ventures, and Moelis & Company LLC, which served as the exclusive financial advisor to the X Games.
Strategic Context: The Evolution of the X Games League
The formation of the MoonPay X Games League represents the most significant structural change in the brand’s history since its inception in 1995. Under the ownership of MSP Sports Capital, which acquired a majority stake in X Games from ESPN in 2022, the brand has aggressively pursued a "league" model. This model moves away from the "one-off" annual competition format toward a year-round, team-based structure. The XGL is designed to foster city-based identities, creating a more stable environment for athletes, sponsors, and fans.
The league is structured around eight clubs—four dedicated to summer sports (skateboarding and BMX) and four to winter sports (skiing and snowboarding). Each club operates on a coed basis, ensuring gender equity in competition and team composition. This franchise-based approach allows for a "draft" system, similar to the NFL or NBA, where clubs select top-tier global talent to represent their respective cities. The sale of the São Paulo franchise to Summit Ventures is the latest in a string of acquisitions by private equity groups and sports entrepreneurs, indicating a robust appetite for action sports assets.
The Brazilian Market: A Cultural and Economic Powerhouse
Brazil was chosen as a cornerstone for the XGL due to its status as one of the world’s most vibrant action sports ecosystems. According to data from the Brazilian Confederation of Skateboarding (CBSk), there are over 8.5 million skateboarders in the country, making it the second most popular sport in several urban centers after football. São Paulo, specifically, serves as the heart of this movement, boasting thousands of skateparks and a deep-rooted DIY culture that has produced world-class athletes for decades.
The economic implications of establishing a permanent club in São Paulo are substantial. By anchoring a franchise in Brazil, the X Games aims to tap into a massive, young demographic that traditional sports leagues often struggle to reach. For Summit Ventures, the acquisition is not merely a sports investment but a cultural play. Ali El Ali has indicated that the goal is to create a "global destination" in São Paulo that serves as a hub for athletes and fans, while also improving the infrastructure for skateboarding and BMX across the region.
Leadership and Vision: Ali El Ali and Bob Burnquist
The partnership between Ali El Ali and Bob Burnquist combines capital-intensive investment strategy with authentic sporting credibility. Jeremy Bloom, CEO of X Games and a former Olympic athlete himself, emphasized that El Ali’s personal connection to the culture of surfing and skateboarding was a deciding factor in the sale. Bloom noted that the X Games sought owners who understood the "special community" inherent in action sports, rather than just financial speculators.
Ali El Ali’s vision for Summit Ventures involves a long-term commitment to emerging markets. He has expressed a desire to bridge the sports cultures of Brazil and the UAE, suggesting that the growth of skateboarding in the Middle East could be accelerated by leveraging the expertise and talent pool found in São Paulo. "We view this as only the start as we look to elevate action sports across Brazil and bridging it with the UAE and wider region," El Ali stated during the announcement.
Bob Burnquist’s role as General Manager provides the club with immediate legitimacy. Beyond his competitive record, Burnquist has spent years fostering the sport through his nonprofit, Instituto Skate Cuida. His involvement ensures that XC São Paulo will remain connected to the grassroots level of the sport while competing on the global stage. Burnquist highlighted that the XGL model provides a "chosen family" atmosphere for athletes, offering them more consistent compensation and a structured career path that was previously unavailable in the fragmented world of action sports.
Chronology of the X Games League Development
To understand the significance of the São Paulo sale, it is necessary to view the timeline of the XGL’s rapid development:
- October 2022: MSP Sports Capital acquires a majority stake in X Games from ESPN, signaling a new era of commercial expansion.
- January 2026: The MoonPay X Games League is officially unveiled, introducing the concept of year-round, team-based competition and city-based clubs.
- Spring 2026: Ownership groups for the first several clubs are announced, including interests from North American and European sports investors.
- June 25, 2026: The sale of XC São Paulo to Summit Ventures is finalized, marking the league’s first major expansion into South America.
- June 26, 2026: The inaugural XGL Summer Season kicks off in Sacramento, California.
Following the Sacramento opener, the league is scheduled to travel to Chiba, Japan, before concluding its summer run with a Championship event in New Orleans in July. The transition to winter sports clubs—focusing on skiing and snowboarding—is expected to follow a similar franchise-sale model in the coming months.
Broader Implications for the Action Sports Industry
The professionalization of action sports through the XGL model is expected to have several long-term effects on the industry:
- Athlete Compensation: Traditionally, action sports athletes relied heavily on individual sponsorships and prize purses from specific events. The XGL model introduces a team-based salary structure and draft bonuses, providing a more stable financial foundation for competitors.
- Gender Equity: By mandate, XGL clubs are coed. This structural requirement ensures that female athletes receive equal visibility and access to the same resources and coaching as their male counterparts, potentially accelerating the growth of women’s skateboarding and BMX globally.
- Media and Broadcasting: The league format allows for "season-long storylines," which are more conducive to modern streaming and broadcast models than isolated annual events. This shift is expected to increase the valuation of media rights for action sports.
- Global Infrastructure: Ownership groups like Summit Ventures are incentivized to invest in local infrastructure, such as training facilities and community parks, to cultivate local talent for their franchises.
Financial and Advisory Framework
The transaction’s complexity required sophisticated financial navigation. Magellan Capital, acting for the buyer, brought expertise in GCC-based (Gulf Cooperation Council) investment flows, ensuring that the capital injection from the UAE met the regulatory and operational requirements of the US-based X Games organization. On the sell-side, Moelis & Company LLC’s involvement underscores the "institutional grade" nature of the deal. The presence of such high-level financial firms indicates that action sports are now viewed by the investment community as a mature asset class, comparable to European football or American major leagues.
MSP Sports Capital, the parent company of X Games, continues to provide the overarching strategic direction. Founded by Jeff Moorad and Jahm Najafi, MSP brings experience from MLB, the NBA, and Formula 1. Their influence is visible in the XGL’s "city-based" branding and the focus on "differentiated returns" for club owners.
Future Outlook
As the XGL Summer Season begins, the eyes of the sporting world will be on Sacramento, Chiba, and New Orleans to see if the league model can successfully translate the "rebel" energy of action sports into a disciplined professional format. The sale of XC São Paulo is a clear indicator that the X Games brand believes the future lies in international expansion and localized fan bases.
Additional club ownership announcements are anticipated throughout the remainder of 2026, with rumors circulating about potential franchises in Europe and Australia. For now, the focus remains on integrating XC São Paulo into the league framework. With the combination of Summit Ventures’ capital, Bob Burnquist’s expertise, and the passionate fanbase of Brazil, XC São Paulo is positioned to be a dominant force in the new era of professional action sports. The success of this club could serve as the blueprint for future international expansions, proving that the X Games can transcend its origins as a television spectacle to become a truly global sports league.
