Private Equity is Buying Up Professional Sports
Franchise valuations have outpaced billionaires. Sovereign wealth and private equity are stepping in, holding minority stakes in over 30% of top-tier teams as of late 2023.
Average Franchise Valuation Growth (2013-2023)
| League | 2013 Avg Val | 2023 Avg Val | Growth |
|---|---|---|---|
| American Football | $1.17B | $5.11B | +336% |
| Basketball | $0.51B | $3.85B | +654% |
| European Soccer (Top 20) | $0.97B | $2.89B | +197% |
Related: Broadcasting rights, Analytics, Sportswashing, Stadium subsidies, Biomechanics, Concussion protocols, NIL deals, Doping scandals, Youth sports costs, Player salaries, The soul of the game, Sneaker markets, Esports winter, Hall of famers, Sports betting boom, Merchandising, VAR tech, Olympic economics, Trans athletes policy, Recovery tech, and Women's sports investment.
Common Mistakes in Valuation
- Assuming linear media rights growth: The cable bundle is dying, and streamers may not overpay for tier-2 rights.
Sports Business FAQ
What is a minority stake?
Owning less than 50% of a team, typically providing capital without granting operational control.
Next Step: Explore our interactive franchise valuation database.