Investments in the Sports Arena

In this session, partners Andrew Rocks and Ben Stein discussed merger and acquisition market trends within the sports arena.

Key takeaways included the following:

• Booming Investment Activity: The demand for sports has driven major increases in capital flows into sports assets, which has been facilitated by continued easing of investment restrictions by professional sports leagues.
• Increased Interest in Women’s Sports: As consumer demand and, in turn, revenues continue to grow, there will be additional opportunities for investments in women’s sports, which are expected to have more attractive returns relative to more established markets.
• Expanding Beyond Traditional Sports: The proliferation and expansion of emerging sports is leading to new investments.
• Focus on League Controls on Investment Positions: There will be additional focus on the navigation of league ownership rules and reporting beneficial ownership information as the investor pool in sports franchises diversifies and deal activity continues to rise.
• Ancillary Markets Will Grow: Expect a more robust market for ancillary opportunities around sports, including betting, media distribution and mobility, digital assets and experiences, athlete performance, and data analytics.
• Sponsorship and Facility Financing Opportunities: Expansion of existing and emerging sports leagues and youth sports will result in significant sponsorship opportunities and alternative financing opportunities around capital projects.