Breaking records in sports
Sports Newsletter Q1 2025
Record year for sports M&A: 44% more mergers and acquisitions
The sports industry experienced a record year for mergers and acquisitions (M&A) in 2024, with a 44% increase in transactions compared to 2023. This surge was primarily driven by the rise in private equity investments, growing fan engagement, and the emergence of sports tech.
A total of 410 M&A transactions took place, 45% of which were private equity platform investments. Private equity played an increasingly significant role in the sports sector, with the number of investments nearly doubling from 96 deals in 2023 to 190 in 2024. Growing niche sports (such as padel and pickleball) particularly benefited from this trend.
Beyond niche sports, investments in sports teams and leagues remained strong, particularly in soccer and American football. Sports teams are increasingly seen as valuable assets, generating stable revenue streams through brand rights and media rights. This trend was exemplified by major deals such as Ares Management's investment in the Miami Dolphins and the acquisition of Everton FC by Roundhouse Capital. However, besides teams, sports leagues are considered even more attractive by investors due to their stability and predictable revenue streams.
In parallel with the increased investments in sport- teams and leagues, the sports-tech sector also saw significant growth, with increasing investments in digital sports solutions. Notable deals included the acquisition of Dream Sports by Tiga Investments and the purchase of Simplebet by DraftKings. These developments highlight the growing interest in technologies that enhance fan engagement and digitize sports ecosystems.
Despite market volatility in early 2024, publicly traded sports companies remained relatively stable. Sports apparel and equipment brands traded around 10.0x EV/EBITDA, while sports retail stabilized at around 6.0x EV/EBITDA. This signals a return to market stability after the pandemic.
Looking ahead to 2025, Oaklins Netherlands anticipates continued strong M&A activity, driven by key factors such as media rights, fan engagement, and sustained interest from private equity investors. Furthermore, the robust pipeline of premium sports businesses entering the market suggests that the sector will remain highly dynamic attractive to investors in the coming year.
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