Davis Polk partner and Sports practice head Jon Oram discussed the increase in private equity investment in sports with Mergermarket.

The article highlights that investor demand is growing for professional sports franchises because they have consistently demonstrated strong returns and often have large fanbases and powerful brands, which makes them a valuable asset class. Jon noted that the compound annual growth rate for sports franchises has been roughly 10-15% over the past 25 years.

Additionally, a key historical challenge for minority investors has been addressed by the onset of institutionalization in the sector, with the emergence of dedicated sports funds willing to buy secondary interests and provide clearer liquidity options. “If you bought a 5% stake in a hockey team, you were locked in until the owner sold,” Jon explained. “Now, with funds willing to buy secondary interests, there are ways to cash out.”

“Private equity opens new frontiers in sports investment,” Mergermarket (January 15, 2026) (subscription required)

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