Citizens Private Bank recently published an insightful piece titled “The Business of Sports: How Private Equity Has Become a Star Player,” examining how institutional investors are reshaping the professional sports landscape.
The article highlights that private equity has rapidly become a driving force behind the soaring valuations of major U.S. sports franchises. With updated league rules since 2019 opening the door for institutional investors, firms like Arctos, Ares and RedBird Capital have entered the field, fueling innovation, liquidity and long-term growth across teams, stadiums and media platforms.
Citizens notes several key factors behind this transformation: skyrocketing franchise values, media rights deals worth tens of billions and the liquidity challenges exposed during the pandemic. Private equity has stepped in as both a funding source and strategic partner, helping franchises modernize operations, enhance fan engagement and grow into sophisticated, data-driven enterprises.
This wave of investment extends beyond ownership, driving advancements in digital fan experiences, stadium development and ecosystem integration across sports, media and entertainment. As the article concludes, private equity’s presence marks a new era where sports franchises operate as professional, globally influential businesses.
