Sports M&A activity in 2025: Deloitte’s outlook
The first wave of private equity exits
As we look to 2025 and beyond, we anticipate the first significant wave of PE exits, marking a critical juncture in the evolving sports investment landscape. Investors will increasingly assess whether to hold, sell, or restructure their stakes in sports properties. On the back of PE exits, investors will evaluate the returns achieved by early market participants and consider their own investment thesis and exit strategies, potentially shaping the future ownership structures and influencing how new capital is deployed in the sector.
In this regard, attention will naturally turn to European football, where private equity investments date back to the mid-2010s, with said investors increasingly focused on strategic exit opportunities.
In 2025 and beyond, whilst we expect many PE firms to pursue full divestitures, we expect some to opt for recapitalisation strategies, such as structured minority sales, allowing incumbents to maintain exposure to the sector’s growth potential and unlock liquidity, whilst potentially paving the way for full disposal down the line.
Polarisation to fuel the ‘barbell effect’
The sports investment market is expected to experience increasing divergence in 2025, with capital flowing disproportionately toward two distinct categories: premium, established properties and high-growth, emerging sports. This ‘barbell effect’ will likely continue to reflect investor appetite for both stable, blue-chip assets and dynamic, emerging opportunities that cater to evolving audience preferences.
At the top end of the market, elite franchises such as those in the NFL, NBA, and English Premier League are expected to continue commanding record-breaking valuations, attracting institutional capital and private equity investment. These properties offer a unique combination of global reach, strong brand equity, and lucrative media rights, reinforcing their appeal to investors seeking long-term stability and predictable returns.
However, as the valuations of premium assets continue to grow, the number of sole buyers for entities of this scale will diminish. As a result, we may see a rise in investor consortiums and sophisticated investors acquiring smaller, tactical investments in premium assets, such as within stadia development and media rights contracts. This divergence will reshape capital allocation and influence long-term strategies across the sports investment market.
Within women’s sport, the commercial success of various franchises demonstrates its increasing viability as an investment class and we expect this to remain one of the fastest-growing segments in the industry, with team valuations rising at pace. Brands and sponsors are taking note, with a growing number of partnerships and endorsements expected to drive further commercial momentum.
Investors to increasingly look beyond the football pitch
While football has long dominated the sports M&A landscape, 2025 is expected to see a growing number of investors broadening their focus, exploring opportunities beyond the traditional strongholds of European and North American football. This shift aligns with the aforementioned polarisation of sports investment, where capital is not only flowing toward premium properties but also into high-growth alternative sports.
Asset managers are forecast to direct increasing capital towards emerging sports that are digitally native and poised for rapid growth. Sports such as pickleball, snowboarding, and esports are gaining traction, particularly amongst younger demographics. Investors expanding beyond football markets may gain first-mover advantages in high-growth sports, unlocking new revenue streams.
Disruptor leagues are also expected to gain further attention. These asset types offer scalable media opportunities and innovative sponsorship models, attracting investors seeking to capitalise on shifting consumer engagement trends. The ability to leverage data from large and engaged fan bases for commercial growth further amplifies their appeal.
As investors continue to explore non-traditional sporting assets, the global sports ecosystem is set to evolve into a more diverse and dynamic investment landscape.
The enduring appeal of minority stakes
As valuations for premium sports properties rise, minority stakes will continue to be an increasingly attractive option for both rightsholders, as well as institutional investors, private equity firms, and family offices.
For investors, minority acquisitions offer the opportunity to gain exposure to coveted, scarce assets. For owners, it can unlock liquidity, providing growth capital and the opportunity to de-risk a valuable portfolio asset. High-profile transactions, such as recent minority stake sales in top-tier football clubs and US franchises, illustrate this growing appetite for passive investment structures.
As we saw in 2024, minority stakes can also offer sports rightsholders an opportunity to bring in strategic partners and/or high-profile athletes/celebrities who can add value beyond capital injection. Investors with expertise in media, entertainment, technology, and global brand development are increasingly being sought by clubs and leagues looking to expand their international footprint and enhance a sports entity’s opportunity to diversify commercialisation efforts. Likewise, high-profile individuals, seeking to leverage their brand following and transition to part-owners, offer a unique avenue to engage the next generation of fan and unlock new commercial opportunities.
This trend is expected to be a defining feature of the sports investment landscape in 2025. As sports organisations continue to diversify their ownership structures, minority investments will likely play a larger role in shaping the financial ecosystem of elite sports in the coming years.
