Q&A: Private equity investment in sport
May 2025 | SPECIAL REPORT: MERGERS & ACQUISITIONS
Financier Worldwide Magazine
May 2025 Issue
FW discusses private equity investment in sport with Matt Bonass, Craig Giles, Richard Bush, Jon Goldsworthy and Intisar Abdi at Bird & Bird LLP.
FW: How would you characterise private equity (PE) firms’ appetite to acquire stakes in sports franchises and related entities? What impact does PE ownership have on these sports once acquired?
Bonass: Private equity (PE) firms are increasingly investing in sports governing bodies, leagues and teams. The global sports market is projected to reach $260bn in revenue by 2033, offering steady returns and strong brand loyalty. PE firms conduct due diligence and leverage expertise to improve efficiency and diversify revenue through ticketing, media rights, merchandising and sponsorships. Baseball opened the door to PE investment in 2019, with all major US leagues following suit. In Europe, firms continue to invest in football, rugby and other sports. For example, CVC Capital Partners invested in Six Nations Rugby to grow the game. Some PE ownership has led to the ‘Americanisation’ of UK sports, particularly football, with increased player contract amortisation, multi-club ownership and the adoption of strategies from other sports. PE firms bring innovation and competitiveness, but profit-driven measures must align with the sport’s culture and not burden fans.
“PE investment has not only improved the quality of women’s sports but has made women’s sports a more attractive proposition for other investors.”
FW: What steps are PE firms taking to drive returns on their investments? Where are they focusing their efforts to boost revenues and enhance value?
Giles: PE firms will frequently stipulate how part of their capital injection into a sport should be invested. This may include ringfencing sums for projects to boost commercial revenues. For example, Real Madrid’s €360m deal with Sixth Street to renovate the Bernabéu includes a retractable roof, allowing the stadium to host concerts and events year-round. PE firms also believe that some sporting properties have underdeveloped commercial programmes. A PE partner can bring a wealth of experience from working with other sports to help optimise existing revenue streams and create new ones. A fresh, commercially focused voice at the boardroom table can galvanise sports to step out of their comfort zone and explore new innovations. A common early stage is to focus on better understanding existing fans to create a superior product and experience for them, then using these insights to reach previously untapped fan bases.
“To comply with legal and regulatory requirements there is a trend of putting players on long-term contracts to spread costs.”
FW: How might the financial regulations and ownership rules established by sports governing bodies affect PE owners in the sports industry?
Bush: Prospective PE owners should be mindful of rules imposed by relevant sports regulators that place restrictions on ownership and investment, so that they, and any property being acquired, can abide by them. By way of prominent examples, in England, both the Premier League and English Football League have important rules relating to the acquisition of ‘control’ of a football club. This requires the provision of, among other things, future financial information to demonstrate how the club will operate, and source and sufficiency of funding to evidence the underpinning of an acquisition and the club’s operations – basically, how much money the club will have and where it will come from. There is also owners and directors’ tests, which seek to prevent individuals and entities that have certain disqualifying events from being involved in or influencing the management or administration of professional football clubs. The publication of certain ownership stakes may also have an impact.
“Prospective PE owners should be mindful of rules imposed by relevant sports regulators that place restrictions on ownership and investment.”
FW: What are the common human resources and employee relations challenges that arise after an investment, including those related to immigration requirements?
Goldsworthy: A key investment trend is a significant injection of capital to facilitate the recruitment of sporting talent to maximise on-field performance and commercial revenues. To comply with legal and regulatory requirements, such as financial fair play, and allow multiple ‘big-name’ signings in a single transfer window, there is a trend of putting players on long-term contracts to spread costs. This can create various issues including pay equity, unrest among existing talent and challenges of season or career-ending injuries. This investment often comes at the expense of a club’s back office with restructurings and redundancy programmes becoming commonplace. This must be carefully managed to mitigate the risk of adverse media attention and backlash from fans and supporter groups. It should also be noted that the UK Home Office has strict rules for clubs that sponsor international playing and coaching talent, with various reporting and administrative requirements being required following an investment. Failure to comply can result in immigration permissions being curtailed or revoked.
FW: How can PE investment contribute to the expansion and commercialisation of women’s sports?
Abdi: PE investment provides crucial capital to an industry that has been historically underfunded, enabling women’s sports to use this cash injection to establish new leagues, upgrade facilities and support top talent. This investment has not only improved the quality of women’s sports but has made women’s sports a more attractive proposition for other investors. As outlined in our ‘Horizon Scan 2025: Key Trends in Women’s Sport’ article, revenues in the sector are set to surpass $1bn this year, with PE firms playing a pivotal role in its growth. PE firms like Atwater Capital, Mercury 13 and Monarch Collective have collectively invested hundreds of millions of dollars into various women’s sports, with such investment supporting the increased professionalisation of the industry. With greater professionalisation, we expect to see improved monetisation strategies and more sophisticated and increasingly valuable commercial deals in the coming years.
“A fresh, commercially focused voice at the boardroom table can galvanise sports to step out of their comfort zone and explore new innovations.”
FW: What are the primary exit considerations for PE firms within the sports industry? How do factors such as market conditions, regulatory frameworks and prospective buyers shape the decision-making process?
Bonass: PE firms consider exit routes in their overall analysis before making an investment. An initial public offering is a realistic option; however, a sale often remains a compelling exit route. Given exits such as Elliott Management’s sale of AC Milan to RedBird Capital, CVC’s exit from F1 to Liberty Media and Bruce Sherman’s/Derek Jeter’s purchase of Miami Marlins, the buyer universe in sports includes PE, strategics and high net worth individuals. PE firms flex their strategy according to the ‘exit-readiness’ of the investment and underlying market conditions, including the broader economic environment, growth opportunities in that sport, sponsorship and media rights, including TV, digital media and streaming. PE firms are well-versed in investing in and exiting from regulated businesses, recognising that current and future ownership regulations may complicate exits – reducing the pool of potential buyers or restricting the level of control for a particular buyer – and will factor this into any exit process.
“PE firms bring innovation and competitiveness, but profit-driven measures must align with the sport’s culture and not burden fans.”
FW: What is the outlook for PE investment in sports in the months ahead? To what extent do you expect to see a rise in capital deployed into this sector?
Bonass: Sport remains a highly valued asset class with billions of fans worldwide. A wave of investment, particularly from the US, is poised to enter the market. However, firms are assessing financial sustainability rules to navigate regulations and opportunities, including the multi-club model. PE firms want an exit, with the first wave in sports expected in the coming years. Some may sell their entire interest, while others may pursue minority sales to retain exposure and unlock liquidity, often as part of a multi-club strategy. Capital will flow into both established franchises and emerging sports. Rising valuations will drive investor consortiums, and women’s sports will attract greater investment due to audience growth and improved monetisation strategies. Investors are also targeting businesses in the broader sports ecosystem, including artificial intelligence, betting and venue management. A strong management team will be key, as PE must balance risk, identify high-growth assets and adapt to the evolving landscape.
Matt Bonass is head of Bird & Bird LLP’s London corporate team and co-head of its international corporate group. He is also a member of the firm’s London management team. Specialising in public and private M&A, private equity, joint ventures, venture capital and equity capital markets work, he supports clients across various sectors, including sport and those that are being changed or disrupted by technology. He can be contacted on +44 (0)20 7415 6000 or by email: matt.bonass@twobirds.com.
Craig Giles is a partner in Bird & Bird LLP’s media, entertainment & sports group in London, advising on commercial issues in all major sports, as well as advertising and marketing campaigns and consumer law. He specialises in advising sports industry clients on sponsorship, image rights, staging agreements, agency agreements, merchandising, licensing, funding agreements, brand protection and ticketing measures. He has particular expertise in the field of media rights. He can be contacted on +44 (0)20 7415 6000 or by email: craig.giles@twobirds.com.
Richard Bush is an experienced and practically minded sports lawyer, working as a partner in Bird & Bird LLP’s media, entertainment & sports group in London. Having trained and qualified at a major city firm, he began his career as a sports lawyer in 2011, working as an in-house lawyer at the Football Association. In 2014, he went back into private practice with a boutique sports law firm, before joining Bird & Bird in 2016. He can be contacted on +44 (0)20 7415 6000 or by email: richard.bush@twobirds.com.
Jon Goldsworthy is a partner in Bird & Bird LLP’s international HR services group in London. As a specialist employment and immigration lawyer, he advises on the full spectrum of HR and global mobility issues to support clients’ talent and people strategies internationally. His employment law experience includes negotiating service agreements and executive severances, advising on the protection of confidential information and enforcement of restrictive covenants. He can be contacted on +44 (0)20 7415 6000or by email: jonathan.goldsworthy@twobirds.com.
Intisar Abdi is a commercial associate based in Bird & Bird LLP’s London office. With a particular focus on sports, media and games matters, she has experience in coordinating multijurisdictional advice, advising on sponsorship agreements, marketing agreements, licensing agreements, loot boxes and a range of contractual and commercial issues more generally. As a member of the Women’s Sport Group, she is particularly interested in and passionate about the growth of women’s sport. She can be contacted on +44 (0)20 7415 6000 or by email: intisar.abdi@twobirds.com.
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