Private-equity investors in the U.S. are discovering good returns from sports teams’ transmission rights (broadcast and streaming) and sports betting. These investors also found out that inexplicably sports properties are unaffected by the security markets and higher interest rates, making them more alluring during periods of volatility.
The good prospects have attracted new entrants, that are expected to focus on riskier (i.e., less commercialized) sports. For instance, in 2021 sports investors RedBird Capital Partners and CVC Capital Partners backed deals with Indian cricket teams.
In 2022, U.S. private-equity and venture capital firms raised $34.4 billion in the sports sector, less than the previous year, but still significant compared to the $25.4 billion sports investments in 2019.
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