As institutional capital floods into sports, investors are navigating a rapidly changing landscape where traditional financial models don’t always apply. At the 2025 Moorad Symposium, global sports industry practice co-chairs Jeff Moorad and Andrew White joined a panel of industry executives and investors to unpack the growing role of private equity in sports and the complexities of investing in an asset class defined by rising valuations, limited control, and inconsistent cash flow.
The following key takeaways explore how investors are adapting to the unique dynamics of the sports industry and what these shifts mean for the future of sports financing.
Unlike other sectors where private equity can exert control over operations and steer strategy, professional sports are tightly governed. Most leagues cap institutional ownership—often allowing only minority, non-controlling stakes—and impose strict rules around ownership eligibility, capital calls, and conflict of interest restrictions. Stakeholders may also be barred from investing in adjacent businesses or required to financially backstop clubs or franchises in times of need. These limits directly contradict the fundamental private equity playbook, which relies on influence, efficiency, and clear exit paths. Yet, institutional capital continues to flow in, driven by the perceived stability and cultural relevance of sports franchises. For PE firms managing third-party capital, the appeal of scarcity and visibility has to be weighed against the operational constraints and inability to drive typical performance improvements. It's a balancing act between prestige and practical return generation—one that many funds are now navigating with caution.
Ownership strategies in sports have become increasingly split between traditional, hands-on owners and newer portfolio-style models in recent years. Legacy owners often serve as the “face of the franchise” and are deeply involved in team decisions, culture, and overall identity. In contrast, institutional groups are building multi-team holdings that can unlock operational efficiencies and cross-franchise synergies. These models can succeed, especially in international markets, where shared infrastructure across clubs—like HR, marketing, and data—can deliver cost and performance benefits. But success hinges on having both exceptional management and a nuanced understanding of each market and sport. Sports franchises can be highly sensitive, and dispersed ownership may dilute accountability and slow decision-making. It also risks weakening the connection to core operations, fan experience, and brand integrity. As the industry becomes more professionalized, both approaches will persist, but the optimal model depends on the investor’s ability to match structure with operational oversight and strategic intent.
With team ownership continuing to get more expensive and operationally complex, many investors are now seizing broader opportunities across the sports ecosystem. In recent years, capital has been flowing into segments like media rights, training platforms, youth sports infrastructure, and compliance technology—areas offering stronger control, scalable growth, and clearer revenue potential. These adjacent markets not only present more accessible entry points, but also position investors to benefit from the accelerating expansion of the global sports industry. Trends such as the professionalization of college athletics, rising youth participation, and ongoing innovation in sectors like sports betting and analytics are creating dynamic, high-growth investment opportunities. The sports industry—valued at more than $3 trillion globally—is expanding well beyond the teams themselves, and as capital becomes more disciplined, tapping into the infrastructure and emerging sectors around sports is becoming one of the most promising paths to sustainable, outsized returns.
The perception that sports investments are only going up, driven by headline-making transactions with valuations north of $6 billion, can be misleading —obscuring the financial and operational risks involved. While franchise values are rising, most teams operate at a loss and require continual investment. Operating costs are also ballooning, as players, fans, and sponsors expect more every year, and meeting those demands means higher expenses with little immediate payoff. For investors, particularly those managing institutional money, this raises red flags. In traditional PE, investments must show pathways to liquidity and return. In sports, returns are often speculative, relying on terminal value and belief in long-term appreciation. Women’s sports, in particular, highlight both the promise and risk—values are skyrocketing, but regulatory gaps (like FIFA’s lack of training compensation on the women’s side) cap revenue potential. Investors often can’t rely on hype alone—they need a clear thesis on where, when, and how value will be realized.