Private Equity and Venture Capital Reshaping Sports: A New Playbook for Global Investors

The world of sports is no longer just about trophies and ticket sales. A seismic shift is underway as private equity (PE) and venture capital (VC) firms rewrite the rules of the game, pouring billions into teams, leagues, and cutting-edge infrastructure and creating funds. Nowhere is this transformation more visible than in Saudi Arabia, where Vision 2030 has turned sports into a cornerstone of economic reinvention—and a magnet for savvy investors looking to score big.

So, what is the private equity? firms raise capital from outside investors (Limited Partners) and invest in teams in football, baseball, basketball, hockey, racing, and other major sports, typically via minority stakes, with the aim to sell their stakes for a profit within 3 – 7 years.

In addition the definition of venture capital is a type of private equity used to support startups and early-stage companies with the potential for substantial and rapid growth.

Recent Deals Making Headlines

• Los Angeles Lakers Sale Marks $10 Billion Watershed for Private Equity in Sports: A historic transaction positions the Lakers among the world’s most valuable franchises, as Guggenheim Partners CEO Mark Walter steps in with a majority ownership stake. The deal, worth approximately $10 billion, underscores the growing appetite among institutional investors for marquee sports assets—complementing Walter’s existing stakes in MLB’s Dodgers, Chelsea FC, and WNBA’s Sparks.
• Ares Management Enters SailGP, Signaling PE’s Newest Wave in Niche Sports: Following its landmark NFL investment, Ares Management has taken a minority stake in the French SailGP franchise, injecting fresh capital and strategic oversight into the elite sailing series. The deal, part of a broader trend of private equity firms backing “Formula 1 on water,” highlights the sector’s pivot toward high-tech, digitally driven sports that appeal to both fans and sponsors
• Silicon Valley’s Cricket Play: In a move that caught many off guard, a Silicon Valley-backed tech group outbid rivals to snap up London Spirit, a franchise in England’s high-octane The Hundredcricket league, for a staggering £295 million. The deal signals cricket’s rising stock as a global commodity, particularly in markets like India and the Middle East, where tech and sports are increasingly intertwined.
• Texas Money Meets Italian Passion: Serie A club Hellas Verona, once synonymous with Italian football grit, is now under the full ownership of Texas-based Presidion Investors. The acquisition underscores a broader trend: American investors are doubling down on European football, lured by skyrocketing broadcast deals, merchandise goldmines, and the untapped potential of digital fan engagement.
• Mellody Hobson and Ariel Investments Launch Women’s Sports Fund: Mellody Hobson, co-CEO of Ariel Investments, has announced the launch of a new fund dedicated to investing in women’s sports. This initiative aims to capitalize on the growing interest and investment opportunities within the women’s sports sector.

The fund seeks to support and promote women’s sports by providing financial backing to teams, leagues, and related businesses. This move reflects a broader trend of increasing investment in women’s sports, driven by rising viewership and participation.

• Saudi Arabia’s Sports Ambition Goes Global:
  • Basketball’s $5 Billion Power Move: Saudi Arabia’s Public Investment Fund (PIF) is bankrolling a new intercontinental basketball league set to rival the NBA and EuroLeague. With teams spanning Asia and Europe, the league aims to capitalize on the sport’s explosive growth in emerging markets.
  • LIV Golf’s Unconventional Swing: Love it or hate it, Saudi-funded LIV Golf has upended the sport’s establishment, landing prime-time TV slots like ITV and poaching top talent. Critics call it “sportswashing”; investors see a blueprint for disrupting tradition.
  • Gaming’s Next Frontier: In March 2024, Saudi Arabia unveiled two venture funds worth $120 million to turbocharge gaming and esports—a sector exploding across the Middle East. Managed by Merak Capital and IMPACT46, these funds aim to turn the Kingdom into a digital playground, blending tech, entertainment, and sports.

Why Investors Are Betting Big on Sports

1. Vision 2030: More Than a Slogan
   Saudi Arabia’s Vision 2030 isn’t just about diversifying away from oil—it’s a full-court press to dominate global sports. From hosting Formula 1 races and heavyweight boxing matches to building futuristic stadiums, the Kingdom is courting private capital to fuel its ambitions. For PE and VC firms, aligning with these goals isn’t optional; it’s the price of entry for tapping into a market poised to redefine sports economics.
2. Public-Private Muscle Flexing
   Take Riyadh’s Sports Boulevard—a $270 million mixed-use megaproject blending sports, retail, and entertainment. Funded through a public-private partnership (PPP), it’s a case study in how Saudi Arabia is fast-tracking infrastructure by teaming up with deep-pocketed investors. Similar collaborations are sprouting nationwide, offering low-risk, high-reward opportunities in venues, tech, and tourism.
3. Digital Gold Rush
   The Middle East’s young, tech-savvy population is rewriting the playbook on fan engagement. Think virtual reality stadiums, blockchain ticketing, and AI-driven content. Investors aren’t just buying teams; they’re betting on platforms that turn casual viewers into superfans—and data into dollars.
4. Global Domination, Saudi-Style
   Saudi Arabia isn’t content with regional influence. Its investments in football (Newcastle United), golf (LIV), and now basketball signal a strategy to control levers of power across multiple sports. For PE firms, this means opportunities to piggyback on Saudi-backed leagues, sponsorships, and events—from Riyadh to Tokyo.

Conclusion

Private equity’s strategy in the sports industry has long been well-defined: identify undervalued assets, deploy capital and technology, and unlock new revenue streams by monetizing fan engagement in innovative ways. However, the dynamics of the game have shifted considerably.

Saudi Arabia’s Vision 2030 has positioned the Kingdom as both a major participant and a regulatory force in global sports, effectively shaping the flow of international investment.

For investors, the implications are profound. Those who successfully navigate Saudi Arabia’s regulatory framework, leverage digital innovation, and align with the nation’s broader geopolitical objectives are well-positioned to lead in the emerging era of sports investment. Conversely, those who fail to adapt may find themselves relegated to the sidelines.

Omar Almutairi is Solo Practitioner Attorney based in Riyadh.