Sport has become a sizeable and increasingly sophisticated business ecosystem globally. Further growth is expected, driven by digitalisation, globalisation and the continued expansion of fan engagement models.
This PERSPECTIVES Special, focused on the leading North American sports leagues and the English Premier League, examines why professional sports have become such an interesting investment opportunity. We identify the most important shifts in sports investing over the last decade, why investors are looking at sports today as part of a broader portfolio, the particular characteristics of sports investment and what to be mindful of before committing capital. Powerful brands, recurring revenues, global audiences and strong pricing power already make for a potentially appealing mix – and further growth opportunities may lie ahead.
Key takeaways
- Clubs in the large North American leagues and the English Premier League can benefit from their own scarcity, potential long-term value appreciation, low sensitivity to economic downturns and limited correlation with traditional investment classes.
- Valuations have been supported by media rights, sponsoring, global fan engagement and a broader investor base. Some of these factors look likely to prove more durable than others.
- Private investment in sports can be achieved through private equity or private credit, via multiple access routes from direct to indirect investment. The approach taken will depend on investors, risk appetite, liquidity tolerance and desire for control.
