Goldman Sachs19 min
Playing for Scale: The Future of Sports Investing
Nicole Pullen Ross, Allison Nathan
Interview, Fireside Chat
- The global media rights market is projected to grow 41% from $57.8 billion in 2025 to $67 billion in 2026, with streaming services accounting for approximately 20% of this expansion as fans seek consolidated access.
- WNBA valuations are anticipated to rise significantly as teams transition to permanent facilities, exemplified by the Atlanta Dream targeting a 17,000-seat arena after outgrowing 3,500-seat capacity and the Valkyries securing a $850 million valuation compared to the Dream's $280 million.
- Institutional capital is expected to flow increasingly into sports through publicly traded teams and funds, broadening access beyond the traditional multi-hundred million or billion-dollar investment threshold.
- Private equity activity remains robust with 192 transactions in 2025, up from 50 in 2018, as firms continue providing credit lines for growth funding in the college sports space following the NIL settlement.
- College football is positioned to evolve into a highly competitive commercial sector resembling major league structures, with the pace of change accelerating following the NFL's 2024 allowance of institutional investment.
- Global expansion efforts by the NBA and NFL are targeting Europe to generate new opportunities in media, lending, technology, and real estate, while investors also explore emerging leagues like Unrivaled, rugby, and flag football for upside potential.
- Women's professional sports are expected to see continued valuation growth driven by the shift from rented venues to permanent facilities, a trend mirrored by college institutions adopting major league approaches to capital raising.
- Investors are diversifying revenue streams by integrating technology, AI, and year-round facility usage, while seeking exposure to the betting ecosystem and real estate to enhance asset permanency.
- Construction costs averaging $1.7 billion combined with rising interest rates present significant uncertainty regarding the payoff of stadium infrastructure projects due to long lead times and potential economic persistence.
- Financial strategies for capitalizing on growth are varying by asset maturity, with investors weighing the stability of equity returns against borrowing costs for both expansion teams and mature major league assets.
- Uncertainty regarding the duration of high interest rates and construction costs persists, creating risks for owners evaluating the viability of capital-intensive projects with long implementation timelines.
- The pace of evolution in the sports business is anticipated to remain rapid over the next two years, with families and institutions continuing to align investments with community impact while navigating ongoing debates on optimal financing models for the college space.