Goldman Sachs19 min
Playing for Scale: The Future of Sports Investing
Nicole Pullen Ross, Allison Nathan
Interview, Fireside Chat
- The global media rights market grew 41% since 2020, reaching $57.8 billion in 2025 and projected to hit $67 billion in 2026.
- Streaming services now account for approximately 20% of media rights growth, reflecting a shift in how live sports content is consumed.
- Institutional capital inflow into sports surged significantly, with private equity transactions rising from 50 in 2018 to 192 in 2025.
- The NFL became the last major league to allow institutional investment in 2024, catalyzing further valuation increases and capital availability for teams.
- The average stadium construction cost is now $1.7 billion, prompting owners to prioritize long-term viability and multi-use revenue models over single-purpose facilities.
- Technology and AI integration are being deployed to personalize fan experiences, including automated ordering systems and enhanced athlete branding engagement.
- Facility permanency is a primary driver of valuation in women's sports; the WNBA's most valued team (Valkyries) is worth $850 million compared to $280 million for the least valued (Atlanta Dream).
- The Atlanta Dream aims to move from a 3,500-seat rented venue to a 17,000-seat arena to capitalize on high demand, having hosted 51 games with over one million viewers combined.
- A landmark court-approved settlement enables college athletes to directly share in revenue, transforming college football into a competitive, major-league-style financial ecosystem.
- Private equity firms are increasingly offering lines of credit to large universities to fund athletic growth following the implementation of Name, Image, and Likeness (NIL) rights.
- Investors are pursuing international expansion, citing the NFL's nine games in Europe, NBA global strategies, and high-growth opportunities in European football and F1.
- Emerging leagues such as Unrivaled, rugby, and flag football are attracting growth equity capital as investors seek higher upside potential compared to stable buyout opportunities.
- Publicly traded team stocks and broad exposure funds are increasing access for retail investors, reducing the traditional barrier of multi-hundred million dollar minimum investments.
- Family office surveys indicate that while NFL and men's major leagues remain anchors, there is broad interest in the sports ecosystem's real estate, technology, and gaming/betting sectors.