Private Equity in the Sports Industry
September 9, 2025
By Jaime Martín-Borregón Gamazo
When we talk about sports, the first thing that comes to mind is the excitement of competition, physical effort, and passion for the game. What we don’t always see is what’s behind it: the continued interest of private equity firms in this industry, which reached sales of $521 billion in 2024 and is growing at an average rate of 8% per year.
No sport escapes the financial backing of these types of firms. The latest news confirms the trend where the big players in the sector are seeking to position themselves in sports capital through clubs, leagues, sponsorships, and even infrastructure itself. But what is really driving this growing interest, and what are its main risks?
Starting with the appeal of this type of asset, we see that it is a form of global monetization. These clubs are not just local brands but global assets with audiences in every corner of the world. As in other sectors, large firms seek assets with potential for appreciation, and in the world of sports, it is not uncommon to find clubs with poor management. However, one of the most attractive principles of this industry is revenue diversification: television rights, sponsorships, and merchandising, among others. This significantly reduces the risk of relying on a single source of revenue.
In the sports industry, unlike other sectors, there is still a clear lag in digitization: only 30% of companies use technological tools to personalize their marketing campaigns. This gap, especially when compared to 92% in the retail sector, not only highlights a challenge, but also a huge investment opportunity for those who are committed to accelerating digital transformation in this market.
Investment opportunities in the sports industry can be grouped into four main categories:
- Club acquisitions: one example is the US venture capital firm Apollo Global Management, which is currently negotiating the acquisition of a significant stake in Atlético de Madrid through a capital increase.
- Investment in leagues: One notable example is CVC, a private equity firm that acquired a stake in Spain’s LaLiga soccer league. This historic (and controversial) deal involved the transfer of certain club rights and was closed with a valuation of €24.25 billion.
- Image rights: such as Liberty Media’s investment in Formula 1. With an investment of $8 billion, it became the parent company of the competition, promoting content initiatives such as the Netflix series “Drive to Survive” and expanding the brand into new markets. This operation is considered one of the most profitable in the recent history of the sport.
- Sports infrastructure: One example is the entry of Japanese capital into LaLiga through Valencia CF, a deal that has allowed the club to structure and plan the development of its assets and facilities.
Beyond the large private equity funds, it is impossible not to mention one of the giants of the industry: Endeavor Group. This publicly traded US company, with a market capitalization of $11.8 billion, continues to expand its business unstoppably. It organizes tournaments such as the Miami Open and Madrid Open tennis tournaments, and also owns World Wrestling Entertainment (WWE) and Ultimate Fighting Championship (UFC), competitions that have more than 700 million fans and 228 million followers on social media.
However, as in any area of investment, the entry of private capital into sport brings with it specific tensions, especially in the purchase of clubs and leagues. Funds prioritize short-term return optimization, while clubs and federations pursue goals of sustainable development, competitive integrity, and player protection. This clash of horizons is one of the great challenges in professional sports management.
In short, these are highly attractive operations, but they only reach their true potential when they manage to balance two opposing forces:
Passion, competition, and sporting merit VS profitability, control, and risk reduction.