Live Sports: The Powerhouse of Media Investment and Valuation

Jun 5, 2024 | Media

Sports and media across content assets, Live Sports represent a “powerhouse” across the media and entertainment ecosystem — supported by consistent viewership, underlying asset values (i.e., leagues and teams), and fragmentation of other media assets — yielding escalating content rights valuations, as evidenced by the upcoming $76B NBA broadcast rights deal.

Consequently, increasing broadcast rights agreements across multiple leagues have been announced across media distribution channels, confirming the sustained appeal of live sports — and propping up valuations of teams, positioning them as attractive investment targets.

These trends have collectively garnered the attention of institutional investors, including PE funds, that view sports as assets capable of delivering substantial returns. Notably, investors are motivated by an expanding global sports broadcast market, enhancing team revenue and profitability, complemented by trends such as increasing international penetration of leagues and the rise of digital platforms enabling alternate monetization strategies.