Investing in Pro Sports Teams

Certain opportunities may be available only to accredited investors, qualified clients, qualified purchasers or other eligible investors and may not be suitable for all investors.
 

Owning a professional sports team has historically been viewed as a “trophy” investment reserved for the ultra-wealthy. Today, however, professional sports teams have increasingly emerged as a distinct investment category, attracting interest from private equity firms, institutional capital and family offices alike. This evolution is driven by a number of factors, including changes in league rules and the rise of sports investment funds. Between 2019 and 2024, private equity firms invested more than $55 billion in sports-related assets, and as of May 2026 more than 74 professional sports teams in the U.S. have some level of private equity involvement.¹

As the investor base of professional sports leagues becomes more widespread, a greater number of opportunities are emerging to participate. The following are considerations that individuals and family offices should keep in mind when deciding whether or not to pursue an investment in a professional sports team.

Understand Your Options

Investing in a professional sports team is no longer synonymous with acquiring outright control. While headline transactions often highlight majority ownership stakes in major U.S. leagues, a growing number of investors are participating through minority positions. For some investors, establishing a minority position represents a strategic entry point with the potential to learn more about the league and ultimately increase ownership over time.

The opportunity set has also expanded beyond traditional leagues. While established organizations such as the National Basketball Association, National Football League and Major League Baseball remain central to the market, emerging leagues such as pickleball and women’s volleyball may present compelling growth opportunities at a lower valuation with a higher risk/return profile.

In addition, investors may choose to access the category through dedicated sports funds, which can offer diversified exposure across teams and leagues with greater liquidity relative to direct ownership.

Finally, team ownership is often intertwined with broader real estate investment opportunities, including investing in the sports venue where the team plays, as well as real estate development projects for revitalizing areas adjacent to the venue.

Avoid Suprises as a First-Time Investor

Sports teams are a decidedly unique investment relative to other asset classes, and it is important to understand the space and what you are getting into before signing the deal.

For instance, many investors and family offices value their privacy. Sports teams, however, are a very public enterprise, and the family should recognize that, as an owner of a professional sports team, they will no doubt be in the public eye. When the team does well, they will be applauded, and conversely when the team loses, there will be no shortage of critics to tell the family what they are doing wrong.

It is also important to understand the perks you will be entitled to as an owner. Not every minority investor in a sports team will have access to the locker room. Clarify up front the entitlements and privileges that your specific investment will provide for you and your family.

Finally, owners of professional sports teams have often achieved significant wealth by building successful businesses and making rational financial decisions. This rationality and financial discipline, however, sometimes goes by the wayside when the drive to compete and win the national title takes over.  Recognize that, relative to other investments such as real estate, there will be a degree of irrational exuberance in the business decisions that owners will make on behalf of your team.

Play the Long Game

Unlike more traditional investments, professional sports team valuations are not typically anchored in near-term cash flow or distributions. Instead, they are best understood as long-term enterprise value investments. A key driver of this dynamic is scarcity. The number of franchises within major leagues is limited, expansion is infrequent, and ownership turnover remains relatively rare. These constraints have historically contributed to sustained appreciation in team valuations over time. In addition to scarcity, other key value drivers for professional sports teams include media rights, ticket sales and merchandising.

It is also important to understand the total financial commitment you are agreeing to when entering into the transaction, including any capital call obligations, “tag along” and “drag along” rights, and pathways to monetize your investment.

Consider League Regulations

Investing in a professional sports team means participating in a regulated league ecosystem.  Professional sports leagues in the U.S. are governed by various league regulations such as salary caps, revenue sharing rules, and limitations on how much debt a particular team can take on. While some may view these restrictions as onerous relative to other asset classes, they can also be helpful in maintaining the value of your investment, and the strength and resiliency of the category as a whole, by promoting parity among teams (thus fostering better competition) and preventing the possibility that any particular team goes bankrupt.

Investors should weigh the risk/reward tradeoffs of putting their money in a league that is subject to these types of restrictions versus other leagues, including certain international leagues, where team owners may have more latitude in how they operate but may not benefit from the safeguards that league restrictions provide.

Plan for Ownership Succession

As with other closely held investments, ownership in a professional sports team is an investment that is often hard to value and difficult to monetize. These challenges from an estate planning perspective are compounded by the fact that many professional leagues have certain restrictions and approval rights regarding who can inherit shares of one of the league's teams.

Before you draft or update your estate plan, consider contacting the league to discuss your potential investment in the team and solicit feedback on any ownership transfer restrictions that you should be aware of and incorporate into your estate plan. 

How Northern Trust Can Help

Sports ownership should be evaluated not only as an investment opportunity, but as an enterprise-level decision that touches portfolio construction, liquidity, governance, reputation and succession. Before pursuing an investment, families should work with their advisors to define the role sports exposure is meant to play: capital appreciation, income generation, diversification, strategic access, family legacy or some combination. They should also assess where the investment fits within the family’s broader liquidity profile, including potential capital calls, stadium or real estate commitments, limited exit options and league-imposed debt restrictions.

Equally important is governance. Families should determine who will make decisions, how future generations may participate, whether ownership structures comply with league rules, and how the investment aligns with the family’s public profile and long-term mission. In that sense, franchise ownership requires the same discipline that built the family’s wealth: a clear thesis, sufficient liquidity, strong governance and an experienced advisory team.

¹ Private Equity and Sports. A Natural Partnership. CFA Institute. https://www.cfainstitute.org/insights/articles/sports-investment-private-equity.
Accesed August 14, 2026.