With a growing global fan base and a diverse pool of investors, demand for sports assets is rising. Arjun Nagarkatti, Head of Private Bank – US & Europe International at Deutsche Bank, explains why, far from being vanity projects, sports investments potentially offer a strategic opportunity for uncorrelated returns.
Annual revenues for the global sports sector are projected to nearly double by 2033 from the current figure of more than 460 billion US dollars[1]. Consumer demand, digitalisation and a global media market are key drivers of this growth.
“Demand for sports assets continues to grow, from both a consumer perspective and an investor perspective,” says Arjun Nagarkatti, Head of Private Bank -US & Europe. “Valuations are spurred by the growth in ultra-high-net-worth individuals (UHNWIs), particularly in the US where sports investments are increasingly viewed by some investors as a potential long‑term ownership opportunity.
“It’s also one of very few sectors we believe will be largely unaffected by disruption from AI. While AI will impact analytics, models and scouting, the core activity of getting players on the field for a game isn’t going to change.”
Nor will the distinct pull of live sport, which still sees millions tune in at a specific time to watch the drama unfold. “With everything else, you’ll watch at a time and location of your choosing,” says Nagarkatti. “But not with live sport.”
As a global “Hausbank”, Deutsche Bank has a long history of supporting owners in financing sports acquisitions and releasing liquidity from long-term holdings. The bank supports financing solutions across major sports such as football, Indian Premier League (IPL) cricket, Formula 1, and major US leagues such as the National Football League (NFL) and National Basketball Association (NBA).
These are some of the world’s most popular sports: the average NFL game, for example, is watched by 18.7 million people[2] while English Premier League football boasts 1.87 billion global followers and is broadcast to 189 countries[3].
Blue-chip teams and price-appreciation potential
Investment opportunities in sport range from established ‘blue-chip’ franchises which aim to provide stable cash flow to high-risk niche sports with significant price-appreciation potential.
Blue-chip options, such as leading US sports teams, often benefit from long-term media agreements and lucrative sponsorship.
Demand for sports assets continues to grow, from both a consumer perspective and an investor perspective.
Arjun Nagaraktti
Head of Private Bank - US & Europe International
“Investor approaches to sports investments can vary depending on objectives, risk tolerance and time horizon,” says Nagarkatti. “Some investors focus on minority stakes in established teams, where the emphasis is often on long‑term ownership. Others may consider smaller clubs or developing sports such as eSports, padel or SailGP, where value creation can involve more active involvement over time. These opportunities can carry significant risk, and outcomes will depend on a range of factors.”
He adds: “There’s potential for substantial returns, but you also bear significant risks, which may include relegation and running out of money.”
This field includes many British and European football teams, as well as key women’s teams in football and the Women's National Basketball Association (WNBA). Revenue from US women’s sports grew 4.5 times faster than that of men’s sports between 2022 and 2024[4].
Across different types of sports investments, outcomes are often influenced by how value is created and sustained in an increasingly dynamic and competitive environment. “There is the potential to invest in training facilities, the commercial department, the marketing department, the stadium, the luxury offering, corporate hospitality and fan schemes,” explains Nagarkatti. “Choosing the right team becomes critical.”
Beyond the passion and prestige
Amidst the passion and prestige, the financial case for sports investing is often overlooked. Yet sports assets may offer a opportunity for resilient returns, says Nagarkatti. “In our view, returns from sports‑related investments may not always move in line with broader financial markets, including during periods of volatility. Nevertheless, for example, many NBA teams have seen annual valuation growth exceeding 20 per cent[5],” he comments.
However, he adds: “Sports investments can involve significant risks, and outcomes will depend on factors such as valuation discipline and the expertise supporting an investment.”
Illiquidity and cash-flow risks are factors that would-be investors must carefully consider. “Do you have the appetite for locking your money in when an exit may take six to 12 months or longer?” says Nagarkatti. Many teams are not cash-flow positive, he adds, and investors considering such an acquisition must plan for the liquidity required to support the business in the years ahead.
Different approaches to sports ownership
Sports investments mainly come from three sources, says Nagarkatti: emerging market money, including sovereign wealth funds; US-based UHNW families; and private equity firms.
European families have historically approached sports investments differently to their US counterparts, often with a narrow focus on “local passion projects”, says Nagarkatti. “By contrast, in the US, many investors view sports ownership as a long‑term investment. I think it will change in Europe but not overnight.”
Nagarkatti cites three reasons why Deutsche Bank could offer value to sports investors. “Firstly, we have developed experience in this area, which enables us to support informed discussions around sports‑related transactions that make sense,” he says.
“Second, Deutsche Bank is one of very few banks with truly global reach and we leverage that to connect you with opportunities anywhere in the world. Third, we have extensive experience in advising on and financing transactions involving sports assets, supporting clients through different stages of an acquisition – and we believe nobody else can value and lend against sports assets as we can.”
In a fast-changing world, the emotional resonance of following a sports team remains undiminished. No investment guarantees plain sailing, but the tailwinds behind these much-prized sports assets look stronger than ever.
