Interest
Insights | August 2025
Sports investments - value or overvalued?
Earlier this year, the ECB sold equity stakes in The Hundred franchises in English cricket.
This has ushered in a transformative era, injecting capital into the sport and paving the way for ambitious projects and structural changes.
Over the last few months there have been literally thousands of articles and think pieces extolling the virtues (or otherwise!) of the ECB’s decision to sell equity stakes in the franchises and the likely impact on the domestic game. Regardless of whether you think this is a good thing or a bad thing, it is undeniable that there have been many people at the helm of a range of private equity or investment groups that think there is value to be had in this and indeed a range of other sports investments – and this is a trend that has been growing.
Private equity accounted for 45% of 410 transactions in the sports industry during 2024 with the number of private equity investments nearly double from 96 deals in 2023 to 190 last year
It is too early to assess whether the £525 million raised by the England and Wales Cricket Board through the sale of predominantly partial stakes in The Hundred’s eight franchises will represent good value for those investors, but despite being largely unknown in the USA, with 2.5 billion fans globally (second only to soccer according to World Atlas) its easy to see why private equity providers see opportunity. According to research by Oaklins as reported by SportsPro, private equity accounted for 45% of 410 transactions in the sports industry during 2024 with the number of private equity investments nearly double from 96 deals in 2023 to 190 last year.
These figures are the continuation of a trend as in recent years, private equity firms have increasingly turned their attention to the sports industry, recognising the potential for substantial returns and strategic growth. This has led to transformations within sports franchises and related entities, reshaping the landscape of professional sports. Several factors contribute to the growing allure of sports investments for private equity – these being firstly the perception of stable revenue streams often due to sports franchises benefiting from dedicated fan bases, ensuring consistent income through ticket sales, merchandise, and other channels. Secondly, the surge in media rights valuations has opened new revenue avenues, making many sports assets more attractive to investors. Thirdly, investing in sports allows non sport specialist PE firms to diversify their portfolios with assets that often exhibit low correlation to traditional financial markets.
Several high-profile transactions already landed in 2025 underscore the depth of private equity’s involvement in the sports sector, but the influx of private equity has introduced both opportunities and challenges.
In the plus column, PE investments provide essential funds for infrastructure improvements, talent acquisition, and global expansion initiatives and by leveraging expertise in media rights, sponsorships, and merchandising, PE firms can unlock new revenue streams for sports entities – with very many examples of PE investment being driven by a perceived underutilisation of the potential value and returns in sports assets. Perhaps trickier is the classic PE promise of professional management: PE firms often implement professional management practices, enhancing operational efficiency and strategic planning within sports organisations.
This is obviously relevant to executive leadership but in the case of elite sports investments the drive to professionalise and drive better outcomes in management becomes much more problematic with ‘on filed’ performance – which is obviously a major driver of returns and medium-term valuations.
PE firms often implement professional management practices, enhancing operational efficiency and strategic planning within sports organisations.
Investing in sports allows non sport specialist PE firms to diversify their portfolios with assets that often exhibit low correlation to traditional financial markets.
Indeed, valuations are increasingly becoming a hot topic in PE investment into sport. At McBride Sport, our own informal survey of nearly 50 executive leaders of sports organisations conducted throughout March 2025 indicated that over 75% of them thought investment into sport was beginning to overheat and create unrealistic valuations in sports PA investments. Whether sports investments are indeed subject to a growing buddle of overinflated valuations is a becoming a hot debate amongst many but it appears that the increased interest by PE providers in sport and associated service providers is not going to diminish any time soon.
With the next season of The Hundred already underway, the cricket world and the investment community will be watching closely. This tournament won’t just be a test of big hitting and tactical bowling, it will also be a litmus test for the ECB’s new investor-backed model. From ticket sales to media buzz, franchise performance to fan engagement, this season could provide the first real indicators of whether the sport’s bold new chapter is headed for sustainable success or a valuation reality check.
One thing’s for sure - the game is changing, fast. And as ever in sport and finance, timing will be everything.
One thing’s for sure - the game is changing, fast. And as ever in sport and finance, timing will be everything.