The global sports landscape will continue to be an attractive market for many years, with 61% of sports executives expecting accelerated growth in private investment over the next 5-7 years, according to Altman Solon’s Global Sports Survey.
The survey of more than 150 global sports executives and 2,500 sports fans in the U., US, and six other countries highlights areas of expansion for private equity firms and sovereign wealth funds to invest in the global sports industry.
The survey noted that the sports marketplace has enjoyed a rapid rise in recent years, with consistent revenues, popularity among advertisers, and loyal fan bases, making global sports a hub for investment and an asset class with significant upsides.
It added that over the past 18 months, the launch of dedicated investment funds focusing solely on sports, from athlete-led initiatives like APEX Capital to funds dedicated to women’s sports, signal even more growth ahead. According to Altman Solon’s survey, 39% of sports executives see institutional private equity dominating sports properties, followed by 35% who select sovereign wealth funds to lead investments in sports.
David Dellea, director of Altman Solon, said: “Investment in the global sports industry shows no signs of slowing down. The rise of private equity and sovereign wealth funds across the sports industry –and its surrounding ecosystem – is a testament to the strength of sports IP in a world increasingly dominated by the ‘attention economy’.”