In a move that signals a transformative shift for the action sports industry, X Games has officially confirmed the sale of X Games Club (XC) São Paulo to Summit Ventures, a United Arab Emirates-based investment group. This transaction, announced from X Games headquarters in Boulder, Colorado, marks a pivotal expansion of the MoonPay X Games League (XGL) just as the organization prepares for its inaugural season. Summit Ventures, led by entrepreneur and action sports enthusiast Ali El Ali, is a purpose-built investment vehicle specifically designed to capitalize on the intersection of sports, live entertainment, and cultural engagement.
The acquisition of the São Paulo franchise represents the integration of one of the world’s most vibrant skateboarding markets into a formalized, team-based professional structure. Brazil’s deep-seated cultural affinity for action sports—specifically skateboarding and BMX—positions São Paulo as a cornerstone of the new league’s global strategy. To ensure the club’s competitive and cultural success, Summit Ventures has partnered with Brazilian skateboarding icon Bob Burnquist, who will serve as the General Manager of XC São Paulo. Burnquist, one of the most decorated athletes in X Games history, brings decades of expertise and local credibility to a project that aims to bridge the gap between grassroots Brazilian talent and the global professional stage.
Strategic Financial and Advisory Framework
The sale of XC São Paulo was facilitated by top-tier financial and advisory firms, underscoring the institutional scale of the MoonPay X Games League. Moelis & Company LLC acted as the exclusive financial advisor to X Games, managing the valuation and negotiation process. On the buy-side, Magellan Capital, a diversified investment manager and financial advisory firm based in the Dubai International Financial Centre (DIFC), advised Summit Ventures.
The involvement of these firms highlights a growing trend of private equity and institutional capital flowing into action sports. Since X Games became a portfolio company of MSP Sports Capital—a firm founded by veteran sports investors Jeff Moorad and Jahm Najafi—the brand has pivoted toward a more structured, league-centric model. MSP Sports Capital’s experience with major leagues such as MLB, the NBA, and Formula 1 is evident in the XGL’s architecture, which mirrors traditional professional sports leagues through franchise ownership, athlete drafts, and season-long narratives.
The MoonPay X Games League: A New Era for Action Sports
The launch of the MoonPay X Games League in 2026 represents the first year-round, team-based, coed league in the history of action sports. Historically, the X Games operated as a series of standalone events held twice a year (Summer and Winter). While these events garnered massive viewership and legendary status, they lacked the consistent seasonal structure that drives long-term fan engagement in sports like football or basketball.
The XGL addresses this by establishing eight city-based clubs: four dedicated to summer sports (skateboarding and BMX) and four to winter sports (skiing and snowboarding). These clubs are designed to create regional loyalties and provide a platform for athletes to compete as part of a team rather than as isolated individuals. The inaugural 2026 summer season is scheduled to begin on June 26 in Sacramento, California. From there, the competition will move to Chiba, Japan, before concluding with a championship event in New Orleans in July. Following the summer circuit, the league will pivot to its winter season, expanding the model to the snow.
Brazil as a Global Action Sports Powerhouse
The selection of São Paulo as a host city for one of the inaugural XGL clubs is a data-driven decision rooted in market demographics. Brazil is home to the second-largest skateboarding population in the world, trailing only the United States. Skateboarding is not merely a recreational activity in Brazil; it is a significant cultural export and a vital component of the national sporting identity.
The success of Brazilian athletes on the global stage—from the legendary vertical riding of Bob Burnquist to the street dominance of modern stars like Rayssa Leal and Kelvin Hoefler—has created a massive, passionate fan base. By establishing a formal club in São Paulo, X Games and Summit Ventures are tapping into a market that is already primed for high-level competition. This move is expected to catalyze further investment in local infrastructure, such as world-class skateparks and training facilities, while providing a direct pathway for emerging Brazilian talent to enter the XGL draft system.
Leadership and Vision: Ali El Ali and Bob Burnquist
The partnership between Ali El Ali and Bob Burnquist is central to the identity of XC São Paulo. El Ali, the Principal of Summit Ventures, is not a traditional passive investor. As a lifelong skateboarder and surfer, his interest in the league is fueled by a desire to elevate the culture of action sports while expanding its reach into emerging markets, particularly in the Middle East.
"Action sports have had a profound impact on my life," El Ali stated during the announcement. He emphasized that the acquisition is "only the start" of a broader effort to bridge the gap between the sports communities in Brazil and the UAE. This regional connection is a key part of Summit Ventures’ strategy, as the firm looks to foster global growth for skateboarding and BMX through the XGL platform.
Bob Burnquist’s role as General Manager provides the project with unparalleled technical expertise. Beyond his competitive record, Burnquist is a pioneer in sports philanthropy through his "Instituto Skate Cuida," a nonprofit that utilizes skateboarding as a tool for social inclusion in Brazil. Burnquist noted that the transition of X Games into a league format is a natural evolution for a sport that has long functioned as a "chosen family" for its participants. He expressed a commitment to building a club that reflects the grit and creativity of the Brazilian scene while commanding international respect.
Economic Implications and Athlete Compensation
One of the most significant impacts of the MoonPay X Games League is the fundamental change in how action sports athletes are compensated. In the traditional "contest" model, athletes relied heavily on individual sponsorships and top-three finishes at major events to earn a living. This created a high level of financial instability for all but the most elite competitors.
The XGL’s team ownership model introduces a more stable economic environment. Athletes will now receive compensation as part of their club contracts, which includes salaries and benefits in addition to traditional prize purses. This shift is expected to extend the careers of professional athletes and allow them to focus more on performance and progression rather than financial survival. Furthermore, the league’s coed structure ensures that male and female athletes compete on the same stage, promoting gender equity in a space that has historically struggled with a visibility gap.
Chronology of the X Games Evolution
To understand the significance of the São Paulo sale, it is necessary to view it within the broader timeline of the X Games’ recent history:
- 1995: The first "Extreme Games" are held in Newport, Rhode Island, under the ownership of ESPN.
- 2022: ESPN sells a majority stake in X Games to MSP Sports Capital. The new owners announce a vision to modernize the brand and increase its digital presence.
- 2024: X Games leadership begins hinting at a move toward a league-based model to provide year-round content and better athlete support.
- Early 2026: The MoonPay X Games League (XGL) is officially unveiled, introducing the concept of city-based clubs and a structured season.
- June 2026: X Games announces the sale of multiple clubs, including the high-profile acquisition of XC São Paulo by Summit Ventures.
- June 26, 2026: The inaugural XGL season kicks off in Sacramento.
Broader Impact on the Global Sports Market
The sale of XC São Paulo to a UAE-based investor group is reflective of a wider trend in the global sports economy: the pivot of Middle Eastern capital toward high-growth, culturally relevant assets. While much of this investment has historically gone toward football (soccer), golf, and Formula 1, the move into action sports suggests that investors are looking for younger, more digitally engaged audiences.
X Games CEO Jeremy Bloom noted that the interest from global business leaders and private equity investors has been robust since the league’s formation. "The formation of XGL greatly expands compensation opportunities for athletes beyond existing prize purses," Bloom explained. By attracting owners who "live the culture," such as El Ali, the league aims to maintain its authenticity while scaling its operations.
The success of XC São Paulo will likely serve as a blueprint for future club sales. As the league looks to expand its footprint in Europe and other parts of Asia, the combination of local legends (like Burnquist) and global capital (like Summit Ventures) will be the preferred model. This approach ensures that the clubs are not just corporate entities but are deeply rooted in the local scenes they represent.
Future Outlook: Winter Expansion and Global Reach
As the summer season gets underway, the X Games League is already looking toward its winter expansion. The winter model will follow the same club-based structure, focusing on skiing and snowboarding. With the addition of São Paulo, the league has secured a vital foothold in the Southern Hemisphere, and additional club ownership announcements are expected in the coming months as more investors seek to join the XGL ecosystem.
The ultimate goal of the XGL is to create a sustainable, high-growth platform that elevates action sports to the same level of professional rigor as mainstream sports leagues. Through the sale of XC São Paulo, X Games has taken a major step toward that goal, uniting global capital with local passion to define the next chapter of skateboarding and BMX history. As the world’s best athletes gather in Sacramento, Chiba, and New Orleans this summer, they will do so not just as individual competitors, but as the foundational members of a new global sporting tradition.
