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SMART SUMMARY
- Private equity is transforming sports ownership, with institutional capital reshaping team structures across the NFL, NBA, NHL, MLB, and global football.
- New league rules are unlocking investment opportunities, enabling sponsors, family offices, and high-net-worth individuals to take minority stakes in major franchises.
- Global markets are emerging as the next frontier, as U.S. investors pursue controlling interests in European and Latin American clubs amid rising valuations and media rights growth.
PE in the End Zone
We first discussed the NFL's groundbreaking decision to permit private equity investments into clubs in our Q4 2024 issue. Since then, the league has formalized its framework, requiring a minimum 3% stake, a six-year holding period, and strictly passive ownership with no voting or governance rights. These rules aim to preserve the NFL's traditional ownership model while enabling new capital inflows.
This regulatory clarity has catalyzed a wave of activity. Most recently, the league approved the purchase of an 8% stake in the Chargers by Arctos Partners, which also acquired a 10% stake in the Buffalo Bills in January, while Ares Management took a similar position in the Miami Dolphins and related assets. The New York Giants have announced a process to sell up to 10% of their equity, which is expected to attract significant sponsor interest. Behind the scenes, other franchises are believed to be fielding inbound inquiries as well.
Notably, these transactions have ushered in a new era of diversified ownership. Alongside institutional sponsors, family offices and highnet-worth individuals are increasingly participating as limited partners. The Bills' deal included nine individual investors – among them former NBA stars Tracy McGrady and Vince Carter, as well as US soccer legend Jozy Altidore – while the Dolphins welcomed Joe Tsai and Oliver Weisberg for a combined 3% stake. The Philadelphia Eagles reportedly sold an 8% stake to two family investment groups in late 2024, and just a few weeks ago, the San Francisco 49ers reached a deal to sell a 6.2% stake to three Bay Area families – the Khoslas, the Deeters and the Griffiths. This trend reflects a broader shift in NFL ownership dynamics, where estate planning and intergenerational transfers are now being complemented by strategic recapitalizations involving a wider range of capital sources.
PE's Full Court Press
Since the NBA changed its rules in 2020 to allow private equity investment, a growing number of teams have embraced institutional capital. Notable transactions include the Sacramento Kings (Arctos and Blue Owl), Atlanta Hawks (Blue Owl), Golden State Warriors (Arctos), Minnesota Timberwolves (Blue Owl), Philadelphia 76ers (Arctos), Phoenix Suns (Blue Owl, which exited with a 158% gain upon Matt Ishbia's February 2023 purchase of the team), San Antonio Spurs (Sixth Street), and Utah Jazz (Arctos).
Private equity is not just reshaping the business of sports – it's redefining who owns the game and how it's played, both on and off the field.
Most recently, the NBA witnessed a historic transaction as the Los Angeles Lakers agreed to sell a majority stake to Mark Walter, co-founder and CEO of Guggenheim Partners and TWG Global, in a deal that values the franchise at $10 billion—the highest valuation ever for an NBA team. This follows the March 2025 sale of the Boston Celtics for $6.1 billion to a group led by private equity executive Bill Chisholm and Sixth Street, underscoring the astronomic rise in valuations, and the accelerating role of institutional capital in reshaping NBA ownership dynamics.
Meanwhile, the Portland Trail Blazers are officially in the process of being sold, with a transaction expected to close during or after the 2025–26 season. With Forbes' latest valuation putting the team at $3.5 billion, the sale is likely to involve a consortium of investors, potentially including private equity or family offices.
While the pace of private equity entry into the NBA has been measured, the league's relatively flexible governance structure – including roles like alternate governor – has made it easier for minority investors to gain meaningful involvement. As valuations climb and liquidity needs evolve, more teams may look to institutional capital as a strategic ownership solution.
PE's Power Play
The NHL joined other leagues in 2021 in allowing private equity investment. While such ownership is not always disclosed, known examples include the New Jersey Devils (Arctos), Minnesota Wild (Arctos), Pittsburgh Penguins (Arctos and RedBird), and Tampa Bay Lightning (Arctos and Blue Owl). The NHL permits up to 30% ownership by a single fund, offering more latitude than the NFL and contributing to a steady stream of sponsor interest.
PE's Home Run
Similarly, MLB does not require disclosure of private equity ownership, but public relationships include the Boston Red Sox (Arctos and RedBird), Los Angeles Dodgers (Arctos), Chicago Cubs (Arctos), San Francisco Giants (Arctos), Houston Astros (Arctos), and San Diego Padres (Arctos). MLB's 30% cap and relatively open governance model have made it a fertile ground for sponsor activity.
Global Goals – PE's Expanding Footprint in Global Football
While U.S. leagues like the NFL and NBA continue to impose tight restrictions on private equity ownership – limiting stake sizes, requiring passive roles, and capping the number of teams a fund can invest in – global football is moving in the opposite direction. Across Europe and Latin America, leagues are increasingly embracing institutional capital, often allowing controlling stakes and direct operational involvement.
Over a third of clubs in Europe's top five leagues now have private equity or venture capital backing, with U.S. investors leading the charge. Multiclub ownership models are on the rise, and valuations – still lower than U.S. franchises – are attracting opportunistic capital. Notable deals include Ares Management's $500 million investment into Chelsea FC and CVC Capital's $2.1 billion stake in La Liga's commercial rights. These moves reflect a growing appetite for global sports assets – especially in markets where media rights and brand value are rapidly expanding.
In Mexico, Liga MX – long one of the most-watched soccer leagues in the U.S. and Latin America – is also opening its doors to institutional capital, and in particular, allowing sponsors to own a control stake. The league is currently considering a $1.25 billion investment proposal from Apollo Global Management in exchange for a stake in a new commercial rights entity. Meanwhile, American investors have already entered the league: Al Tylis holds a stake in Club Necaxa, and a pending deal involving Querétaro FC is expected to bring in additional U.S. capital.
Back in the U.S., the NWSL is taking a more progressive stance on ownership. Last year, Sixth Street acquired a controlling interest in Bay FC, and Carlyle partnered with Seattle Sounders FC owner Adrian Hanauer to take majority control of Seattle Reign FC. These deals – along with those in Liga MX and European football – stand in stark contrast to the more cautious, control-preserving models in U.S. leagues like the NFL and NBA. They may signal a new model for how sports leagues can balance institutional investment with long-term growth and community engagement.
Conclusion
Private equity involvement is bound to continue to increase in sports as leagues, teams, and sponsors navigate new rules and changing landscapes. The influx of institutional capital is now being matched by growing participation from family offices and high net worth individuals, reshaping ownership structures across leagues. Sponsors continue to seek high returns in light of difficult markets, with sports organizations increasingly viewed as resilient and high-growth investment opportunities. Meanwhile, international markets – particularly in Europe – are emerging as the next frontier for private equity expansion. While private equity can drive growth, such investments require careful consideration and navigation of the new and complex regulations governing such relationships and stakeholder interests. Private equity is not just reshaping the business of sports – it's redefining who owns the game and how it's played, both on and off the field.
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