Insights Now Alternative Realities: Stadiums, teams and private equity in sports
Oct 30, 2025
Join Tyler Jayroe, a seasoned portfolio manager at J.P. Morgan Asset Management, as he unveils the thrilling intersection of private equity and sports. Discover the staggering $500 billion sports ecosystem, where team valuations soar under the influence of brand equity and scarcity. Tyler reveals how private equity capital is shifting towards stadium infrastructure and mixed-use developments, while navigating the complexities of league rules. He also examines the rise of investments in emerging sports like pickleball and how fan engagement remains crucial amidst these financial changes.
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Sports Is A Large, Fast-Growing Market
- Sports is a large $500 billion market growing roughly 5–8% annually, driven by recurring revenues and strong demand.
- Private equity is attracted to its size, growth, and favorable supply-demand dynamics like scarcity of franchises.
Media Rights And Scarcity Drive Value
- Long-term media rights create stable, high-margin recurring revenue that boosts franchise profitability.
- Closed leagues and limited franchise supply add scarcity value, supporting premium valuations.
Franchise Values Have Risen Sharply
- North American major sports franchises added about $270 billion since Q1 2019, roughly 14% CAGR.
- That growth rivals the S&P 500 but trades at higher revenue/profit multiples due to brand and scarcity.