Sports assets are attracting sophisticated investors seeking global opportunities, clear investment horizons and potentially uncorrelated returns – but understanding the risks entailed is crucial. We explore how Deutsche Bank aims to help clients identify, assess and structure acquisitions that align with long‑term strategic goals.
The sports‑asset landscape is evolving as valuations rise and international ownership grows, demanding a more structured approach to sourcing and evaluating potential acquisitions.
Investors need a medium- to long-term horizon and “a certain amount of risk appetite”, says Arjun Nagarkatti, Head of Private Bank – US & Europe International at Deutsche Bank. “These are not short-term, liquid assets,” he adds. “You need to fully understand the risks.”
This is where a bank can act as a strategic partner, according to Nagarkatti. “We can identify opportunities, ensure you understand the pros and cons, assess your investment horizon based on your motivations, and provide options for extracting liquidity while you continue to hold the asset,” he explains.
“Some families want to hold for two to four generations and act as stewards for the next 100 years, for example. Others aim to add value over five to seven years and exit at a profit.”
Clients increasingly view sports assets as strategic acquisitions for their overall portfolio.
Arjun Nagaraktti
Head of Private Bank – US & Europe International, Deutsche Bank
From US-based families exploring Indian cricket assets to families in the UK assessing US sports teams, Deutsche Bank’s global network can help connect investors with cross-border assets suited to their needs and circumstances.
“Clients increasingly view sports assets as strategic acquisitions for their overall portfolio,” says Nagarkatti, who is an avid sports fan himself. “With such important capital allocations, you don’t want to feel limited by geography. You want the right fit for you and your portfolio: an asset you are passionate about and to which you can add value.”
Represented in 56 countries and with strong bases in major emerging markets[1], Deutsche Bank’s worldwide presence “puts us in a strong position to match clients with best-fit opportunities,” he adds.
The importance of balancing growth potential with structural risks
In an industry where competition is intensifying on and off the pitch, larger media-rights deals and broad revenue growth are drawing capital from a wider range of investors, including private equity and private credit.
While the US remains the most mature market, European private equity activity in sports has expanded significantly in recent years[2]. Financial outcomes differ markedly across the industry.
“While valuations – and in many cases revenues – are increasing, financial performance can be uneven,” says Sowmya Kotha, Global Head of Strategic Lending, who is working to accelerate growth in sports financing within the Private Bank’s lending team.
“Not all teams are profitable, and some will require cash injections for further investments in players and stadiums.”
Such additional capital requirements should not be viewed as a burden. “They can be instrumental in building the value of these teams,” states Kotha.
One risk investors do need to consider is the level of management capabilities in many tier-two and tier-three leagues particularly in European football. “It is improving,” she says. “But investors need to be mindful that it will take time and resources to build those capabilities.”
Why clarity of purpose is crucial when evaluating sports investments
Sports assets fall into three categories – blue‑chip, small or mid cap equivalents and niche opportunities. Matching clients to the right assets requires understanding their capabilities, capital commitment and appetite for operational involvement – and ensuring they are competing in the right arena.
For one US‑based client, Deutsche Bank identified an NHL opportunity that resulted in an acquisition. “They knew how to monetise, develop and expand the asset,” says Nagarkatti. “They had the expertise, the liquidity and a well-defined horizon.”
Mid cap equivalents appeal to clients seeking greater value-creation potential with less upfront investment than a blue-chip franchise. One client, for example, is exploring a minority stake in a “mid-table Premier League team”. Although they have no intention of running the club, they have a clear view of their investment horizon and target returns.
Return expectations vary across the spectrum. “Blue‑chip and mid cap equivalents could deliver decent medium‑term returns,” says Nagarkatti. “Niche assets potentially offer higher returns, but they are riskier.”
“Clarity of purpose is essential. You need to be clear about how much you are investing and why. Investing in sports assets is not suitable for every investor.”
Sports assets sometimes offer diversification that is hard to replicate, making them an attractive component of long‑term wealth planning. As Nagarkatti notes, they are “almost entirely uncorrelated with just about anything else clients invest in.”
Combined with the sector’s relative resilience to AI and the enduring appeal of live sport, these qualities allow for strategic acquisitions that complement investors’ existing portfolios.
