Private Equity Firms Increasingly Invest in Professional Sports Teams

The landscape of professional sports is witnessing a significant influx of private equity investment, with firms recognizing the lucrative potential of franchises. Recently, venture capital founder Joshua Kushner and former Disney CEO Bob Iger acquired a majority stake in the Los Angeles Lakers, marking a pivotal shift in ownership dynamics as the Buss family's control over the team has diminished since 2025.

The Lakers, originally purchased by Jerry Buss in 1979 for $67.5 million, are now valued at approximately $12.5 billion. This dramatic increase underscores the financial allure of professional sports, which has evolved from a passion-driven investment to a strategic financial opportunity, as noted by private-equity attorney Ross Williams.

As of May, over 74 North American professional teams have engaged with private equity, with these firms accounting for 61% of all mergers and acquisitions in the sports sector since 2019. The appeal of sports as a recession-resistant investment is highlighted by the steady revenue streams from media deals, merchandise, sponsorships, and ticket sales, making it an attractive option for investors looking for stability amid economic fluctuations.

James Adams, a director at the CFA Institute, emphasizes that professional sports have shown resilience against business cycle fluctuations, making them a safe harbor for private equity investments. The NBA's lucrative media deal, valued at $6.9 billion annually through the 2035-36 season, exemplifies the financial strength of the league and its franchises.

The trend of increasing viewership across sports further supports this investment surge. The NBA has averaged over 22 million fans per season for the past three years, with the most recent Finals drawing the highest viewership since 1998. This growing interest in sports, reflected in the WNBA and FIFA World Cup broadcasts, suggests a promising outlook for future profitability in the sector.