The Surge of Private Equity in Global Sports
The sports industry is witnessing a meaningful influx of capital from private equity firms. According to Il Sole 24 Ore, these investments have surged to a staggering $15.75 billion, a remarkable 18% increase compared to 2020’s $13.35 billion. This surge can be attributed to the financial strain placed on sports clubs by the pandemic, creating opportunities for well-positioned private equity firms to capitalize.
One notable example is the recent investment in Atalanta, where stephen Pagliuca, co-chairman of Bain Capital, is personally investing alongside other shareholders. This deal highlights the growing appetite of private equity for ownership stakes in prominent sports franchises.
Perhaps the most impactful advancement is CVC Capital partners’ strategic partnership with Spain’s La Liga. Mirroring their negotiations with Italy’s Serie A, CVC is injecting approximately $2.24 billion into a newly formed media company dedicated to La Liga. This model,focused on unlocking the value of media rights,is also being explored for France’s Ligue 1,with CVC collaborating with Oaktree Capital,a Californian fund that previously provided a $275 million loan to Suning for Inter Milan.
This trend of private equity entering the sports arena is not limited to football. Here’s a snapshot of some of the most significant investments across various sports:
CVC Capital partners: La Liga ($2.24 billion), Six Nations Rugby ($0.51 billion), premiership Rugby ($0.25 billion), Pro14 ($0.15 billion), Volleyball World ($0.3 billion)
KKR & Silver Lake: UFC ($2 billion)
Dyal Capital Partners: NBA ($2 billion)
Redbird Capital: Fenway Sports Group ($0.75 billion), Yes Network ($0.56 billion), OneTeam ($0.13 billion)
Bridgepoint: MotoGP ($0.64 billion)
GTCR: Vivid Seats ($0.58 billion)
Blackstone: Yes Network ($0.56 billion)
silver Lake: City Football Group ($0.5 billion), Australian Professional League ($0.1 billion), All Blacks ($0.13 billion)
QSI: PSG ($0.47 billion)
Elliott Management: AC Milan ($0.43 billion)
China Media Capital: City Football Group ($0.4 billion)
KKR: PureGym ($0.4 billion)
PIF: Newcastle United ($0.4 billion)
Abu Dhabi United Group: City Football Group ($0.38 billion)
LionRock Capital: Inter Milan ($0.17 billion)
hig Capital: Sportive ($0.13 billion)
This influx of private equity capital is reshaping the landscape of professional sports, bringing both opportunities and challenges. while it can provide much-needed financial stability and fuel growth, it also raises questions about ownership structures, fan engagement, and the long-term sustainability of the industry.
