Sports investment, traditionally dominated by the ultra-wealthy, has become more accessible due to relaxed ownership regulations over the past decade. Historically, figures like David Tepper, owner of the Carolina Panthers, and Steve Cohen, owner of the New York Mets, were among the few billionaires who could afford to stake a claim in sports franchises. However, recent changes have paved the way for broader participation from investors at all levels.
The shift began in 2006 when Formula 1 allowed private equity firm CVC Capital Partners to acquire a stake in the racing league, marking a milestone in sports investment. The trend continued in 2021 when the NBA approved a rule allowing private equity to own up to 20% of a franchise, further opening the door to investment in sports teams.
Today, investors have two primary avenues to enter the sports sector: equity and credit. In equity, investors can acquire minority ownership in teams or franchises, benefiting from potential gains as the value of the team increases. Alternatively, they can provide loans or structured equity to finance team or stadium development.
One of the driving forces behind the growing interest in sports investing is the sector’s impressive growth relative to the broader equity market. According to JPMorgan Private Bank’s 2025 outlook report, mergers and acquisitions within the sports industry have surged, increasing more than eightfold in the past five years. In contrast, mergers in the public equity markets have fallen by 40% during the same period. This growth, coupled with increasing valuations, continues to attract private capital, according to Ted Yarbrough, Chief Investment Officer at Yieldstreet, a firm that connects accredited retail investors with alternative assets, including sports.
Over the last decade, sports leagues have dramatically outperformed the S&P 500. For example, Major League Soccer (MLS) saw its value soar by 1,565%, nearly five times the performance of the S&P 500. This kind of growth has contributed to the appeal of sports as an alternative investment class.
“Sports investments offer the potential for lower correlation to traditional risk assets like equities,” says Jay Serpe, global head of strategy and business development for alternatives at JPMorgan Private Bank. He adds that the growth in the sector is driven by factors such as viewership and live events, which could make sports investments a useful diversifier for portfolios.
The scarcity of opportunities in sports, coupled with the strong future outlook for the industry, makes sports teams and leagues an attractive asset class. As media consumption shifts away from traditional TV networks, sports events remain one of the few live-viewing experiences that attract large audiences, providing a unique opportunity to capitalize on media rights.
“The largest area of equity exposure we’ve seen is in the ownership of major leagues or teams,” Serpe says. “Large private equity firms have been active in this space for several years, and valuations have seen significant growth. Other emerging sectors, such as women’s sports and new sports leagues, could offer higher returns.”
Apart from investing directly in sports teams, investors can explore various other avenues within the industry, such as media rights, ticketing, streaming, event management, college athletics, and stadium development. According to JPMorgan’s report, there has been increasing interest in emerging sports leagues and women’s sports, while investments tied to sports real estate, such as stadiums, are also gaining traction.
For Serpe, diversification across multiple areas—such as sports, media, and entertainment—is key to capturing potential upside while managing risk. He also highlights the importance of using debt or equity in more established leagues to mitigate risks. However, investors must be aware of the illiquidity risk associated with private markets, which means they should expect higher returns, typically 3% to 5% annually above public markets.
Despite the rapid growth in the sector, the relative lack of historical performance data for sports investments requires careful consideration of projections and underlying assumptions. Yarbrough advises that investors should thoroughly understand the factors driving the investment thesis and the potential risks before diving into this emerging asset class.
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