Private equity has emerged as a major player in the world of professional sports, and as leagues continue to ease their ownership rules, dealmakers have the opportunity to make more plays.
US sports teams’ valuations have grown faster than the S&P 500 in recent decades, spurring PE firms to seek opportunities to add North American franchises to their portfolios.
Across the Atlantic, capital continues to pour into clubs in Europe’s “Big 5" soccer leagues as revenues rise. US investors in particular have been making their way in with several notable deals, and more are on the way—777 Partners is raising the money to buy a majority stake in the Premier League’s Everton FC, according to Forbes.
Our dashboards track every PE connection to Europe’s top soccer leagues and North American pro sports teams.
Here are five of the most prominent PE sports deals in 2023:
Arctos Partners picks up stake in PSG
US PE firm Arctos Partners acquired a 12.5% stake in French soccer club Paris Saint-Germain from Qatar Sports Investment in December, valuing the club at €4 billion (about $4.3 billion).
PSG is not Arctos’ only foray into the world of European soccer, as it also backs Fenway Sports Group, which purchased English club Liverpool FC in 2010 for about £300 million.
The investment in last year’s Ligue 1 champions will go toward growing the club’s operations and real estate plans, according to PSG.
This adds to a growing list of US firms investing in Europe’s “Big 5" soccer leagues: 36.5% of the teams in those leagues have a US investor, according to PitchBook data.
Michael Jordan sells majority stake in Charlotte Hornets
NBA legend Michael Jordan sold his majority stake in the Charlotte Hornets to a group that includes Gabe Plotkin, founder of Melvin Capital, and Rick Schnall, co-president of Clayton, Dubilier & Rice, as well as Dyal HomeCourt Partners, among others.
The sale was for a reported $3 billion, far higher than the roughly $275 million that Jordan bought it for in 2010. He will now stay on as a minority owner.
Of the four major North American men’s leagues that allow PE ownership, the NBA has the most connections, with 20 teams having a PE tie of some kind.
Arctos takes another stake in Tampa Bay Lightning
Tampa Bay Lightning owner Jeff Vinik sold a minority stake to Arctos Partners, the second stake that the Dallas-based PE firm has in the NHL team after purchasing one in 2021.
The stake values the Lightning at $1.4 billion, more than 40% higher than Tampa Bay’s value in 2022.
Ten NHL teams have PE connections, which is the lowest rate of ownership among major North American men’s leagues.
Ares Management pumps $500 million into Chelsea
US asset manager Ares Management invested $500 million in English soccer club Chelsea FC as the team’s US owners seek to fund stadium improvements and buy stakes in other soccer teams. Last year, Ares raised $3.7 billion to invest in sports as well as media and entertainment companies.
The Chelsea investment, which occurred in September, followed the £2.5 billion purchase of the team in 2022 by a consortium led by US investor Todd Boehly and Clearlake Capital.
Dynasty Equity stakes Liverpool
September was a busy month for PE investments in Premier League teams as US firm Dynasty Equity bought a minority stake in Liverpool worth up to $200 million.
Fenway Sports Group, the club’s owners, said the investment would go toward paying off debts incurred during the pandemic, among other expenses.
Featured image by Mmdi/Getty Images
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