For years, sports franchises were playthings of billionaires—vanity assets more than businesses. Today, they are something else entirely: yield-bearing assets in a rapidly maturing investment class. Private equity has found its way into the heart of the sports world, and its influence is now impossible to ignore. From club ownership to media rights, merchandising, data analytics, and even athlete representation, the business of sports is no longer driven by passion—it is driven by returns.
According to PitchBook, private equity firms invested more than $50 billion into sports-related assets between 2018 and 2023. That includes direct ownership of teams, infrastructure like training facilities and stadiums, and increasingly, media companies and technology platforms. Major players like Arctos, RedBird Capital, Silver Lake, and CVC have built diversified sports portfolios spanning continents and leagues. RedBird, for example, owns AC Milan, has a stake in the Boston Red Sox’s parent company, and helped bankroll the launch of the XFL reboot. These are not fans with checkbooks. These are portfolio managers.
The inflection point came in 2021 when the NBA officially allowed private equity groups to buy into teams, joining MLB and the NHL in loosening ownership restrictions. The English Premier League and La Liga were already open for business. Since then, equity stakes in dozens of teams have quietly changed hands. The appeal is obvious: teams are limited in number, culturally significant, and have expanding global reach. Media rights are sticky. Stadiums come with valuable real estate. And in an era of low-yield fixed-income products, sports offer long-term appreciation with short-term cash flow.
But while leagues gain financial stability and owners gain liquidity, the impact on fans and players is less rosy. Ticket prices have soared. Team loyalty is being diluted by asset flipping. Long-term decisions—like investing in player development or community infrastructure—can be at odds with the short-term exit strategies of private equity firms, which typically plan to sell within five to seven years. A 2024 report by Deloitte noted that many clubs with recent PE backing had reduced staff, outsourced core functions, or introduced controversial sponsorship deals to boost revenue on paper.
The structure of ownership is also changing. Multi-club models allow firms to leverage synergies between teams, often sharing scouting data, coaching strategies, or even players. But they also risk conflicts of interest. In European football, UEFA has already had to intervene in cases where two PE-backed clubs were set to face each other in continental competition.
There is no going back. The convergence of capital markets and sports is accelerating. For leagues and legacy owners, private equity represents professional management and growth. But for fans hoping their club is “in good hands,” the answer increasingly depends on the fine print of a shareholder agreement.