Sports M&A Soars in 2024: Private Equity, Media Rights, and Tech Deals Fuel Record Growth

Sports Mergers and Acquisitions (M&A) are experiencing an unprecedented boom, defying broader market slowdowns and setting records in 2024. According to Oaklins, sports M&A activity surged 44% over the past year, with 410 transactions completed—driven primarily by private equity (PE) interest, technological innovation, and the resilience of sports as an asset class.

Private equity has been the main engine behind this growth, accounting for 45% of all deals. The number of PE-backed transactions nearly doubled from 96 in 2023 to 190 in 2024. Landmark deals included Oaktree Capital’s acquisition of Inter Milan and Roundhouse Capital’s purchase of Everton FC, valued at over $513 million. Furthermore, Silver Lake’s $21.49 billion acquisition of Endeavor Group Holdings marked the largest sports services transaction of the year, illustrating the trend toward high-value, strategic investments.

Experts highlight the sports industry's stability—anchored by loyal fanbases and consistent revenue streams from media rights—as a key reason why it’s outperforming other sectors. For instance, the NBA’s $77 billion media rights deal and the NFL’s potential renegotiation of its already monumental $111 billion agreement underscore the enduring value of broadcast and streaming contracts. Platforms like Netflix and Amazon Prime Video are aggressively expanding into live sports, with Netflix hosting record-breaking events such as the Mike Tyson vs. Jake Paul fight.

Another growth driver is the evolving regulatory landscape. The NFL's decision to allow teams to sell up to 10% stakes to private equity funds marks a significant shift, unlocking new investment opportunities in America’s most-watched sport. Already, firms like Arctos Partners and Ares Management are capitalizing on these changes.

Notably, the surge extends beyond traditional leagues. Emerging sectors, like women’s sports, are capturing PE interest. The sale of Seattle Reign LLC for $58 million and Portland Thorns FC for $63 million reflects rising valuations driven by soaring viewership and merchandise sales. Simultaneously, investments in sports technology, such as DraftKings' acquisition of Simplebet, emphasize the sector's future focus on fan engagement and digital innovation.

Despite economic uncertainties and a general global M&A slowdown, the sports sector remains a safe harbor for investors. With rising valuations, technological integration, and expanding market diversity, sports M&A is poised to maintain momentum well into 2025 and beyond.