Game on! Why sports investing is the hottest ticket in town

There is no doubt that the sports sector as a distinct sub-asset class within private markets is undergoing a significant shift. Institutional capital is accelerating, new formats are reshaping engagement, and strategic investors are unlocking value well beyond team ownership.

The value that strategic investors bring to sports media and entertainment lies not merely in financial expertise, but in a deep, nuanced understanding of the sector itself. While sports may appear straightforward, each market, from country to country and sport to sport, presents its own complexities. Cultural, political, and technological forces all shape the landscape, driving value in ways that demand more than just capital; they require true partnership and operational insight. Read our exclusive insights from the inaugural SuperReturn International Investing in Sports Summit to learn more about this growing asset class.

Strategic sapital: Beyond funding

Unlike more mature industries, sports investment remains nascent. The sector lacks the depth of consultancy and advisory services found elsewhere, making the role of the strategic investor all the more critical.

Strategic capital in sports is not simply about providing funding or occupying a seat in the boardroom. It is about opening doors for business development, delivering operational guidance, and leveraging industry networks to create tangible value for stakeholders.

Sixteen years ago, sports was not considered an asset class. Today, the industry is witnessing a dual evolution: a rise in operational professionalism and an influx of institutional capital. No longer viewed as mere trophy assets, sports teams and leagues are now managed as serious enterprises, focused on long-term enterprise value growth. This shift has broadened the investor base, attracting not only high-net-worth individuals and family offices but also institutional investors seeking resilient, uncorrelated returns.

At the core of successful sports investment lies the alignment of investor objectives with the long-term vision of the brand. Investors must evaluate the commercial potential of clubs, leagues, or products, with a particular focus on monetising fan bases. Understanding and activating these fan bases remains an early but essential challenge, as it underpins the development of sustainable revenue models and brand value.

As such, strategic investors have to consider how and where they can add real value by asking questions such as: Where is the organisation already strong? Where can they improve? What do the fans actually want to watch? How do you get the sporting jeopardy in there? How do you get people to actually watch the games?

Liberty Media’s acquisition of Formula One in January 2017 stands as a benchmark for unlocking under-monetised assets. Through innovative content strategies (such as Netflix’s "Drive to Survive") and media rights expansion, Liberty Media significantly increased the sport’s commercial footprint, particularly in the US.

CVC’s minority stake in the Women’s Tennis Association (specifically WTA Ventures) in 2023 further exemplifies the value of strategic partnership. By collaborating closely with the league, CVC has supported commercial investment and product improvement, with reinvestment flowing back into athlete salaries and enhanced fan experiences.

Commercial growth levers

Several key drivers are currently underpinning commercial growth in the global sports sector:

• Media rights: The largest revenue stream for established leagues and teams, with optimisation achieved through expanded reach and advanced analytics.
• Sponsorship and merchandising: Technology enhances sponsorship value and creates new inventory, such as digital signage.
• Fan engagement: Direct-to-consumer strategies and data analytics are essential for understanding and monetising evolving fan bases.
• Ticketing and dynamic pricing: Advanced pricing strategies improve per capita revenue and adapt to shifting demand.
• Secular tailwinds: The sports industry is seen as recession-resistant and uncorrelated with broader economic cycles, making it attractive for private equity.

Tapping into women’s sports

In addition to these established drivers, an area of particularly rapid evolution and opportunity is women’s sports. This is due to under-leveraged assets and shifting market dynamics. Investors are increasingly attracted by untapped commercial potential, evolving fan engagement models and favourable demographic trends. Tapping in to the opportunity lies in professionalising operations, enhancing marketing strategies and articulating value propositions to both sponsors and fans.

Although significant capital has begun to flow into women’s sports, especially in Europe and North America, the sector remains under-commercialised, presenting substantial opportunities for value creation. Many women’s clubs, often attached to established men’s teams, benefit from brand association but lack dedicated focus and operational autonomy, which hinders their commercial development.

Having operational control, or at least significant influence, is critical for investors aiming to drive meaningful change and unlock growth, as passive minority stakes are less effective given the current maturity level of women’s sports organisations.

In early 2024, Chelsea FC announced that Chelsea Women would operate under a dedicated, standalone business model, with its own commercial and operational leadership overseen by CEO, Aki Mandhar.

Michele Kang, owner of the London City Lionesses, has become a leading figure in revolutionising global women’s football.

Fan engagement and marketing innovation will be key to building sustainable revenue streams. Traditional approaches used in men’s sports are insufficient for the women’s game, which requires tailored strategies to attract and retain a younger, digitally native audience.

Successful examples, such as Arsenal’s investment in marketing and creative fan engagement initiatives, demonstrate that targeted outreach can foster strong connections and tribalism among fans, which in turn drives attendance, sponsorship, and commercial interest.

However, structural challenges remain, including league immaturity and infrastructure gaps.

Overcoming these barriers will require not only capital but a laser-focused willingness to innovate if women’s professional sports are to survive and thrive.

Backing ‘Picks and Shovels’ Businesses

A core part of the investment thesis in sport as an asset class centres on the inherent scarcity and durable revenue streams of professional sports franchises, which resemble long-term infrastructure assets.

For example, the NFL’s league-wide revenues are predominantly driven (70%) by media rights agreements with major broadcasters such as Fox, Comcast, and ESPN, locked in through 2033.

This provides a rare level of revenue predictability and stability that underpins franchise valuations and forms the foundation of the investment case.

Beyond owning franchises, investors see a compelling opportunity in “picks and shovels” businesses that support the broader sports ecosystem.

These include supply chain management, talent management, ticketing, venue operations, and digital media platforms focused on fan engagement. Many of these companies benefit directly from the growth dynamics of sports teams and leagues.

Notably, the sports industry has yet to fully monetise its global fan base; unlike consumer tech companies that gather detailed user data, many sports clubs lack comprehensive insights into their audiences. This presents significant upside potential through enhanced data utilisation and targeted revenue strategies.

While some media rights markets, such as French football, face pressures, these challenges are expected to create opportunities for investment in adjacent areas. For instance Castore, a company focused on scaling merchandise revenues through data-driven strategies, illustrates the potential to generate growth independent of media rights trends.

Additionally, with over 300 stadium renovations underway globally, especially in Europe, there is a clear trend towards monetising fan experiences, driving stadium revenues, and expanding commercial sponsorships. Although increased financial regulation and cost controls in European football may present near-term headwinds, these measures are likely to foster long-term sustainability and stronger investment fundamentals.

Broadly speaking, the consensus is clear: rights holders and investors are prioritising data analytics, digital fan engagement, and tech-driven operational improvements to unlock value creation opportunities and improve ROI.

New formats like The Hundred (cricket), Professional Triathletes Organisation, Kings League (football) and Baller (football) are redefining engagement, especially with younger audiences.

Conclusion

Although a rapidly maturing asset class, successful sports investment requires more than financial capital. It demands strategic partnership.

The most impactful investors are likely to be those who understand the nuances of the sports ecosystem and have the expertise to leverage multiple commercial levers to drive sustainable growth over the decades ahead.

Like any great sport, there will be winners and losers.