A new asset class takes shape 

Sports is no longer a vanity play for billionaires. Over the past decade, it has matured into a global, multi-asset investment ecosystem; spanning teams and leagues, media rights, technology, data, facilities, and services that increasingly behaves like an institutional asset class.

The numbers are striking. According to S&P Global, sports services deal value reached $31.6 billion in 2024, nearly quadrupling from $8.8 billion the year prior (1). PE deal count in sports nearly doubled in the same period, rising from 96 to 190 (2). Aggregate franchise valuations for the four major North American leagues have compounded at 14.9% annually over the past ten years, outpacing the S&P 500 (3).

For middle-market dealmakers, the evolution is unlocking new opportunities and new complexity. At ACG DealMAX 2026 in Las Vegas, a keynote panel of sports investors explored what's driving capital into sports, where it's going, and what the risk landscape looks like. The discussion confirmed what the data suggests: the game has fundamentally changed.

Why sports — and why now 

Sports remain the last true appointment television. Ninety-six of the top 100 most-watched broadcasts in the United States last year were sports-related, a statistic that underpins nearly every investment thesis in the sector. That dominance has attracted a wave of institutional capital that would have been structurally impossible just a few years ago.

The catalyst has been regulatory. Major leagues have progressively opened their ownership structures to financial investors. MLB allowed PE minority stakes beginning in 2019, followed by the NBA and NHL in 2021. The NFL, historically the most conservative league on institutional ownership, approved PE participation at up to 10% in August 2024 (4).

Andrew Checketts, Managing Director at Sports Capital, noted that leagues had to fundamentally rethink access to capital in order to sustain valuation growth — and that this structural shift has reshaped the entire landscape.

Those rule changes have created liquidity for multigenerational owners, professionalized operations, and enabled continued appreciation driven by media deals. They have also democratized access: six years ago, investing in sports ownership required deep pockets and deep relationships. Today, dedicated sports funds, direct investment vehicles, and increasingly retail-facing structures are making sports an accessible asset class for a broader investor base. Dan Krasner, Managing Director at Platinum Equity, pointed to early institutional investments in teams such as the Detroit Pistons as proof points that private capital can coexist with league governance; providing liquidity for owners while supporting long-term franchise value growth.

Bobby Sharma, Founder and Managing Partner at Bluestone Equity Partners, pointed to the asset class's track record through economic volatility, describing sports as uncorrelated, recession-resistant, and underpinned by secular tailwinds that have driven consistent growth across multiple cycles.

Beyond the headlines: where capital is actually going

Franchise acquisitions capture the headlines. The San Diego Padres sold for a record $3.9 billion in April 2026, shattering the previous MLB mark (5), but teams and leagues represent only part of the investable universe. According to Houlihan Lokey, capital allocation across sports breaks down roughly as follows: teams and leagues (40%), media and broadcasting (25%), sports technology and data (15%), and agencies and services (15%) (6).

Sharma emphasized that his firm thinks about the sports ecosystem in layers — services, technology, media and entertainment, and then leagues and teams — and sees outstanding businesses being built both upstream and downstream from the franchises themselves.

Technology in particular has emerged as a significant value-creation lever. PE-backed investments in sports data analytics, fan engagement platforms, venue operations technology, and betting infrastructure are accelerating. In 2024, total M&A activity in sports reached 410 completed transactions, a record, and a 75% increase over 2022 (2).

For middle-market investors, the adjacent sectors may offer the most compelling entry points: fragmented markets with operational improvement potential, lower entry valuations than franchise ownership, and a direct line to the secular growth tailwinds driving the entire ecosystem.

The global dimension

International expansion is one of the biggest long-term growth drivers. The NBA and NFL are actively monetizing global fandom through overseas games, international media rights, and digital engagement and American ownership groups are crossing into European football. Clearlake Capital, the firm behind the Padres acquisition, already owns a majority stake in Chelsea FC in the English Premier League (5).

But panelists at DealMAX issued a note of caution. Expanding globally requires balancing revenue optimization against the authenticity and accessibility that makes sports valuable in the first place. Alienating core fans in pursuit of international revenue is a real risk, particularly in leagues where local identity drives commercial value.

Valuations: stretched or just getting started?

Valuation is the question that divides the market. The average NFL franchise was valued at $5.7 billion in 2024, up from $1.2 billion in 2013 (7). Some teams are trading at double-digit revenue multiples despite modest cash-flow profitability. The global sports market overall is projected to grow from approximately $515 billion in 2024 to more than $890 billion over the next decade (8).

Practitioners on the DealMAX keynote panel offered differing but disciplined perspectives. Some see today's prices as eye-opening, particularly when entry points are measured against traditional PE return expectations. Krasner, of Platinum Equity, framed franchise ownership less as a conventional financial investment and more as a scarce, long-duration asset. Closer to trophy real estate than a typical operating company, where value accrues over time rather than through near-term cash flow optimization.

The consensus: sports investing is not about textbook EBITDA multiples. It is about long-term appreciation, media economics, and disciplined entry, especially as institutional participation expands the buyer universe and compresses risk premiums.

The next frontier: youth sports and emerging sectors 

While professional team ownership dominates the conversation, the fastest-growing investment opportunities may sit elsewhere. Youth sports is a roughly $40 billion annual market in the United States; highly fragmented, operationally underpenetrated, and exhibiting many of the same demand characteristics as professional sports with significantly more room for consolidation (9).

Recent transactions confirm the trend. BPEA EQT's $1.25 billion acquisition of IMG Academy and Unrivaled Sports' $650 million post-money valuation following a Dick's Sporting Goods-led growth equity round demonstrate that institutional capital is flowing into youth and amateur athletics at scale (9).

Emerging sports present a more nuanced picture. Pickleball, women's volleyball, and other high-participation sports are generating headlines, but participation does not automatically translate into a scalable media business. DealMAX panelists stressed the importance of evaluating governance, media economics, and realistic valuation expectations before committing capital to newer leagues. Equipment and infrastructure businesses adjacent to emerging sports may offer better risk-adjusted returns than the leagues themselves.

What to watch

Several structural dynamics will shape sports investing over the next 12 to 24 months:

Media rights renegotiation. The next wave of league media deals will test whether streaming economics can sustain the growth trajectory that linear television built. Amazon's $3 billion annual spend on sports broadcasting, and the $77 billion NBA media package suggest the answer is yes, for marquee content (8).

PE ownership expansion. As more leagues relax institutional ownership rules, the pool of investable assets will grow. Expect dedicated sports funds to proliferate, increasing competition for quality assets but also expanding the deal universe.

College sports post-NIL. Name, Image, and Likeness rules have introduced commercial dynamics to collegiate athletics that may create new investment opportunities, and new regulatory complexity.

Regional media disruption. The collapse of regional sports networks is reshaping local media economics for mid-market teams, creating both risk and potential new entry points for investors willing to structure around media uncertainty.

The bottom line

Sports investing has entered a new era, one defined by institutional capital, expanding ecosystems, and global scale. For dealmakers who look beyond the headline franchise prices, the opportunity set is broader, deeper, and more structurally sound than it has ever been.

The game is wide open. The question is where you play.

Turn market insight into informed action. Schedule a demo and explore how Datasite helps dealmakers interpret market shifts and uncover opportunities across regions and sectors. 

Sources 

1. S&P Global Market Intelligence, "Revenue streams, potential massive new audience pull PE into sports sector," November 2023; Citrin Cooperman, "The Rise of Private Equity in Sports," February 2026. 

2. Oaklins, Global Sports M&A Report 2024. PE deals rose from 96 (2023) to 190 (2024); total M&A transactions reached 410, up from 285 in 2023. 

3. Ross-Arctos Sports Franchise Index (RASFI), via Penn Mutual Asset Management, July 2025. Aggregate franchise valuations for MLB, NBA, NFL, NHL compounded at 14.9% over 10 years. 

4. Akin Gump, "2025 Perspectives in Private Equity: Sports," February 2025. NFL approved PE ownership at up to 10% in August 2024. 

5. Sportico / ESPN / Fox Sports, April–May 2026. San Diego Padres sold at $3.9 billion valuation to José E. Feliciano and Kwanza Jones (Clearlake Capital). Previous MLB record: $2.42B (Mets, 2020). 

6. Houlihan Lokey, "Sports Market Update — Fall 2024," September 2024. Capital allocation breakdown: Teams/Leagues (40%), Media & Broadcasting (25%), Sports Tech/Data (15%), Agencies/Services (15%). 

7. PwC, "How private equity can rewrite the financial playbook for sports franchises," December 2024. Average NFL franchise value: $5.7B in 2024, up from $1.2B in 2013. 

8. Penn Mutual Asset Management, July 2025; iCapital, February 2025. Global sports market revenue ~$515B in 2024, projected to exceed $890B over next decade. Amazon spending ~$3B annually on sports broadcasting; 11-year, $77B NBA media deal (Amazon, Disney, NBCUniversal). 

9. White & Case, "Private equity’s expanding role in youth sports," April 2026. U.S. youth sports ~$40B annual market. IMG Academy acquired for $1.25B by BPEA EQT; Unrivaled Sports valued at $650M post-money. 

Panel participants: Andrew Checketts (Cynosure Checketts Sports Capital), Dan Krasner (Platinum Equity), Bobby Sharma (BlueStone Equity Partners). Moderated by Colin Schopbach (Datasite) at ACG DealMAX 2026, Las Vegas, April 28, 2026.