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Sports & Entertainment

Getting in the Game: The Future of Sports Investing

Goldman Sachs currently works with over 100 professional sports team owners to help maximize their impact. Our report below shares insights for individuals exploring potential investment opportunities in the sports industry.
Nov 14, 2024 | 3 minute read | 13 page report

Today’s constantly evolving global sports landscape generates hundreds of billions of dollars in both direct and sports-adjacent revenues. We are excited to share perspective on trends in consumer behavior, technology, media rights and more — drawn from our decades-long experience supporting the multifaceted needs of professional sports teams, owners and investors.

Key Takeaways
  • 1
    New media has changed global sports drastically
    While media contract growth is slowing broadly, our clients expect they will provide significant and stable revenue in major US leagues over the next 10+ years. Advertisers, looking to target viewers at scale, have been willing to pay a significant premium to access sports' broad audience. Increasing media contract revenues in the US have driven growth in team revenue, player salaries, and team valuations. Trends in media rights values and team valuations have played out across all leagues – but in different ways.
  • 2
    Major US leagues have approved minority ownership by private equity firms
    This is likely to expand access for investors. In the words of one owner, sports investment comes down to an "axis of risk tolerance vs. enjoyment." This framework, along with a thorough understanding of the risks, can help prospective team owners evaluate opportunities.
  • 3
    Owners are innovating around key trends
    Many control owners constantly evolve their team's models to build successful, durable, and profitable franchises, leveraging opportunities they observe in the marketplace to help drive revenue. Leagues and teams are exploring ways to more directly control media distribution and the accompanying revenue. Control owners are looking beyond traditional home game revenue by building stadium-adjacent entertainment complexes. Women’s sports are entering a new era, with record viewership and attendance numbers.

This material is intended for educational purposes only and is provided solely on the basis that it will not constitute investment advice and will not form a primary basis for any personal or plan’s investment decisions. While it is based on information believed to be reliable, no warranty is given as to its accuracy or completeness and it should not be relied upon as such. Goldman Sachs is not a fiduciary with respect to any person or plan by reason of providing the material herein, information and opinions expressed by individuals other than Goldman Sachs employees do not necessarily reflect the view of Goldman Sachs. This material may not, without Goldman Sachs’ prior written consent, be copied, photocopied or duplicated in any form, by any means, or (ii) distributed to any person that is not an employee, officer, director, or authorized agent of the recipient. This material is not an offer or solicitation with respect to the purchase or sale of any security in any jurisdiction. Investing involves risk, including the potential loss of money invested. Past performance does not guarantee future results. Neither asset diversification or investment in a continuous or periodic investment plan guarantees a profit or protects against a loss. Information and opinions provided herein are as of the date of this material only and are subject to change without notice.

 

Goldman Sachs & Co. LLC is registered with the Securities and Exchange Commission (“SEC”) as both a broker-dealer and an investment adviser and is a member of the Financial Industry Regulatory Authority (“FINRA”) and the Securities Investor Protection Corporation (“SIPC”).