Why Sports Investment?

The sports industry offers potential opportunities by providing access to high-performing teams and leagues that most investors cannot access.

The information on this page is for professional investors only and should not be considered as investment advice.

The sports industry offers potential growth opportunities by providing access to high-performing teams and leagues that most investors cannot access. Fan engagement through live viewership usually drives media revenue and creates premium advertising opportunities, making sports investments attractive. Additionally, sports investments can potentially benefit from secular growth trends, low correlation with traditional markets, and a deep fan connection, leading to numerous possible monetisable opportunities.

Why sports as a business and an asset class?

Potential diversification benefits and low correlation to traditional assets

Low correlation to traditional asset classes and less susceptible to market volatility
During economic downturns, consumer spending may decline, but sports have shown resilience as people continue to seek entertainment and distraction

Differentiated growth assets with compelling historical financial performance

Professional sports is a more than USD 300 billion industry and expected to be worth USD 680 billion by 2028 *
Valuation of major league sport teams is outperforming equity markets

Entertainment value

The rising commercialisation of sports via media rights and franchise have transformed the industry into an attractive investment avenue
Expanding horizons through ancillary markets, such as sports merchandising, technology, esports, real estate and more

Outsized Historical Returns in Sports

Over the past 10 years, the average team value within the four major North American leagues has appreciated at an average of over 15% which is approximately a 50% higher return than the S&P 500’s annualised return

Source: GAM, Avenue Capital.
* Statista, May 2024. Past performance is not an indicator of future performance and current or future trends.
The tradenames, trademarks and logos used here are the registered property of the respective trademark owners. Inclusion here is for reference purposes only and does not indicate any affiliation with, or endorsement by, the owners of these trademarks. Use of these trademarks is not representative of Avenue’s current pipeline or universe of investment opportunities.

Compelling characteristics of sports

At a time when traditional media is struggling to attract and maintain viewers, live sports draw consistently massive audiences¹
Growing, multi-faceted fan engagement presents substantial potential monetization opportunities and provides a compelling case for investment

Uncorrelated, attractive risk-reward

Differentiated Content

Monopolistic content
Multi-generational brand loyalty
Compelling story telling
Events must be consumed ‘Live’

Positive Macro / Secular Trends

Growing Consumer Engagement
Fragmented media and entertainment alternatives
Global competition among media / tech distributors for media rights
Increasing league receptivity to institutional investment

Robust Business Models

Resilient non-cyclical businesses
Significant percentage of recurring revenue
Uncorrelated to public markets
Focus on profitability

Source: Avenue Capital, Forbes.
¹ Anthony Crupi, “NFL Swallows TV Whole, With 93 of Year’s Top 100 Broadcasts,” Sportico, January 5, 2024. For illustrative purposes only. The views are those of the manager and are subject to change.

Example of stakeholders within the sports ecosystem

Source: GAM, Avenue Capital.
Source: Avenue Capital, Forbes, ESEI Business School. For illustrative purposes only. The listed entities above do not necessarily represent current or future potential investment opportunities or portfolio holdings within the GAM Avenue Sports Opportunities Strategy. The views are those of the manager and are subject to change. Logos are trademarks of their respective owners and are used for illustrative purposes and should not be construed as an endorsement or sponsorship of GAM.

The broader sports ecosystem provides a compelling market backdrop for investment

The sports ecosystem contains various stakeholders, each playing a vital role in the success of the industry. From sponsors to broadcasters, franchises to leagues, athletes to fans, everyone has a part to play in the business of sports."

Why now?

Global presence

The continued globalisation of sports is expected to create interesting investment opportunities for growth capital
Growth in sports viewership has accelerated post-Covid.
Growing fan engagement is the key driver of media spending in sports.

Growth in media rights

96 of the 100 most-watched TV programmes in the US in 2023*.
An unprecedented growth in media rights and sponsorship deals with the rise of digital technology is at the forefront of this change.
Competition for broadcasting rights has driven up the value of media deals
Sponsorship/endorsement deals with athletes and teams have become a lucrative source of income, attracting investors looking to capitalise on this revenue potential.

Regulatory changes

Change in ownership rules, makes it more accessible for private equity firms to invest.
National Football League (NFL) and NBA, which historically only allowed individuals to own shares in teams, have come to embrace a wider range of Private Equity providers to acquire up to (but not exceed) 20% of a single NFL/NBA franchise.
The benefit of this is that it provided teams and leagues, whose net worth is largely tied up in their franchises, with a liquidity event, enabling them to accrue extra capital to enter into more lucrative deals and at a faster pace.

Source: GAM, Avenue Capital.
* Anthony Crupi, “NFL Swallows TV Whole, With 93 of Year’s Top 100 Broadcasts”, Sportico, 5 Jan 2024. The views expressed are those of the manager and are subject to change. These views are aimed to help readers in understanding the investment manager's investment process and should not be construed as investment advice.

UM WEITERE INFORMATIONEN ANZUZEIGEN: Nur für professionelle Anleger

Wählen Sie Ihr Land

Video

zum Video

GAM Alternatives launch event - Marc Lasry

April 2025

Sports investing is emerging as a scalable, uncorrelated asset class — from minority stakes in global clubs to women’s leagues with asymmetric upside.

Outlook 2025

5 Min

„Game Changer" - Startschuss für Investitionsmöglichkeiten im Sportbereich im Jahr 2025

Dezember 2024

CHANCEN IM SPORTBEREICH: „Das Engagement der Fans durch Live-Zuschauer treibt in der Regel die Medieneinnahmen und schafft erstklassige Werbemöglichkeiten."

Our Thinking

Contact us

Your local contacts

Bitte wählen Sie Ihr Profil oder besuchen Sie unsere Kontakte & Standorte.

Disclosure: This post is for informational purposes only and does not constitute advice, a recommendation, or an offer to sell or solicit any security or financial product. Inherent in any investment is the risk of loss.