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The days when businesspeople bought top sports teams simply for the love of the game are largely gone.
Today, investment firms, consortiums and private capital from around the world are rushing to acquire the most attractive and profitable assets, looking to invest and quickly grow their billions.
Sports teams are currently among the most sought-after franchises in the business world. The 50 most valuable sports teams are worth more than $353 billion, more than twice their combined value in 2022.
This is also reflected in the sale of major teams and ownership stakes around the world at increasingly high valuations.
One example is the NBA’s Los Angeles Lakers, which were sold just 14 months after their previous sale.
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The Lakers were sold on 12 August for $12.5 billion to former Disney CEO Bob Iger and Josh Kushner, the brother of Donald Trump’s son-in-law, Jared Kushner.
It was the most expensive sale in sports history. Just 14 months earlier, the team had been sold to Mark Walter for $2.5 billion less.
The Lakers also rank second behind the Boston Celtics in NBA championships won.
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Two days after the Lakers deal, it was announced that Amazon founder Jeff Bezos, through an investment group, had acquired a 30% stake in Liverpool F.C., the English football club with the joint-most league titles, alongside Manchester United, with 20 each.
The 30% stake was acquired for £1.65 billion.
US-based Fenway Sports Group (FSG) will retain its majority stake and operational control of the club.
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Last year, the Boston Celtics were sold to an investment group for $6.1 billion, making it the most expensive team sale in sports history at the time.
In football, the most expensive club sale was Chelsea F.C., sold by Russian businessman Roman Abramovich to an investment group led by American investor Todd Boehly for $4.25 billion in May 2022.
Italian football club AC Milan, one of the sport’s historic franchises, was also sold in 2022 for €1.2 billion.
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The world’s 50 most valuable sports franchises include 30 NFL teams, 12 NBA teams and four football clubs.
The Dallas Cowboys top the list with a valuation of $13 billion, followed by the Golden State Warriors at $11 billion.
The Los Angeles Lakers rank fifth at $10 billion, while Real Madrid, the most valuable football club, ranks 20th at $6.75 billion. The Boston Celtics are 21st, valued at $6.7 billion.
Manchester United, Barcelona and Liverpool also feature on the list.
One reason is the strong interest in sports, at a time when demand exceeds supply and private capital is constantly seeking investment opportunities.
Certain regions and sports leagues also offer more stable revenue streams.
And even when investors buy at high valuations, in many cases they can later sell at a higher price.
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In Germany, clubs operate under the 50%+1 rule, meaning club members retain majority control and voting rights over the professional team.
As a result, investors, with some exceptions, cannot take majority control.
In August, Germany’s Federal Cartel Office ruled that the Bundesliga’s 50+1 rule is, in principle, compatible with German competition law. The framework was also tightened to ensure that club members can participate in decision-making.
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Clubs whose owners have funded the team for more than 20 years can be exempt from the rule. The two clubs that have used this exemption are Bayer Leverkusen, backed by Bayer AG, and VfL Wolfsburg, backed by Volkswagen.
Hoffenheim previously qualified for the exemption but no longer does.
Red Bull Leipzig formally operates as a member based club, but in practice, voting rights are limited to people with ties to Red Bull.
The club will now have to comply with the rules.
