Why Private Equity Loves Sports Franchises
Private equity firms have discovered what lifelong fans already knew: sports franchises are valuable, resilient, and culturally powerful.
Unlike many industries, professional sports boast:
- Stable and predictable revenue streams from long-term media deals
- Global brand equity that transcends markets and generations
- Appreciating franchise values, with teams often doubling in value over a decade
According to PitchBook, global private equity investment in sports surpassed $60 billion in 2024, with firms such as Arctos, RedBird Capital, and Sixth Street taking positions in top-tier leagues from the NBA to European football.
The appeal is simple. Sports are no longer just entertainment; they are an asset class.
Deal Structures and Ownership Trends
Private equity’s approach to sports ownership is strategic and adaptable. Because many leagues restrict majority ownership by institutional investors, firms are getting creative.
- Minority stakes allow PE groups to gain exposure while respecting league rules
- Consortium models bring together multiple investors, sharing both risk and upside
- Athlete-backed funds such as those led by LeBron James, Kevin Durant, and Patrick Mahomes give players a seat at the ownership table
These structures allow investors to diversify across teams, leagues, and even related businesses such as media, merchandising, and fan engagement technology.
How PE Ownership Is Changing the Game
The arrival of professional investors has redefined how teams operate. Once driven primarily by tradition and intuition, franchises are now increasingly data-driven, metrics-focused, and financially disciplined.
This shift has led to:
- Smarter player development decisions based on performance analytics
- Sophisticated pricing strategies for tickets and fan experiences
- Long-term capital planning that optimizes for both profitability and brand growth
However, there is a balancing act. As financial efficiency rises, teams must ensure that culture and fan connection remain at the core of their identity.
The Athlete Opportunity: From Endorsements to Ownership
For athletes, the evolution of sports ownership represents a once-in-a-generation opportunity. No longer limited to endorsement deals, today’s players can:
- Co-invest in franchises or funds, turning their earnings into long-term equity
- Serve on advisory boards, influencing the strategic direction of teams
- Partner with private equity firms, aligning athletic success with financial growth
These opportunities require sophisticated financial planning and access to capital, which is where specialized support becomes essential.
Navigating the Risks
While the upside is significant, private equity’s involvement in sports is not without risk. Over-commercialization can alienate fans, and league rules continue to shape what is permissible. Both investors and athletes need to evaluate:
- Ownership structures and governance
- Long-term alignment with brand values
- Liquidity and exit options in a historically illiquid asset class
Careful due diligence and expert guidance are essential to avoid costly missteps.
Sure Sports’ Perspective: Empowering Athletes to Invest Like Owners
At Sure Sports, we believe athletes should have the same opportunities as the investors shaping today’s sports landscape. Our customized financing solutions allow professional athletes to unlock the value of their playing contracts without waiting for future earnings to arrive.
Whether you are looking to:
- Co-invest in a sports franchise
- Fund a new business or investment partnership
- Build long-term wealth beyond your playing career
Sure Sports provides the flexibility and confidence to move strategically. We understand the financial life cycle of athletes, and we help you make your contract work for you.
Want to turn your playing contract into a strategic financial asset? Connect with Sure Sports to explore customized financing solutions that support your investment goals.
