The Rising Role of Private Equity in Professional Sports. A Review
Introduction Since 2019, private equity (PE) investment in sports franchises, media rights, and stadium infrastructure has grown significantly due to league bylaw changes. These assets attract PE firms with their strong returns and diversification benefits, especially in economic uncertainty. PE p...
Saved in:
| Main Authors: | , , |
|---|---|
| Format: | Article |
| Language: | English |
| Published: |
Nicolaus Copernicus University in Toruń
2025-02-01
|
| Series: | Quality in Sport |
| Subjects: | |
| Online Access: | https://apcz.umk.pl/QS/article/view/57874 |
| Tags: |
Add Tag
No Tags, Be the first to tag this record!
|
| Summary: | Introduction
Since 2019, private equity (PE) investment in sports franchises, media rights, and stadium infrastructure has grown significantly due to league bylaw changes. These assets attract PE firms with their strong returns and diversification benefits, especially in economic uncertainty. PE provides long-term value through franchise ownership, media rights monetization, and infrastructure investments. However, challenges include limited governance control and illiquid assets, complicating exit strategies. Despite this, PE remains a growing and appealing sector for investment.
Materials and Methods
A literature review was conducted using sources like the IMF eLibrary and PubMed, focusing on studies from 2019–2024. Keywords included “private equity,” “sport,” and “investment.” Criteria included analyses of sports financing trends and investment impacts on global markets.
Results
PE in sports grows yearly due to strong financial returns and diversification benefits. Challenges include governance limits and illiquidity, but PE provides liquidity and operational expertise to underfunded franchises, maximizing revenues and valuations. This aligns sports investments with macroeconomic strategies, boosting their market appeal.
Conclusions
Private equity's rise in sports marks a shift in financing since 2019, offering liquidity, expertise, and valuation growth. While governance challenges exist, PE investments address underfunding and position themselves as vital players in the financial evolution of professional sports.
|
|---|---|
| ISSN: | 2450-3118 |