Private Equity Takeover: Are Billionaires Ruining Your Favorite Sports Team?

By Edcel Panganiban June 16, 2025 09:45

In recent years, the face of professional sports ownership has undergone a seismic shift. Once dominated by individual billionaires and family dynasties, major U.S. sports leagues are now increasingly welcoming private equity (PE) firms as minority investors in teams. This influx of institutional capital is reshaping how teams are managed, financed, and valued but it also raises a pressing question for fans: are billionaires and private equity firms ruining the soul of your favorite sports team?

The Rise of Private Equity in Sports Ownership

Historically, owning a professional sports team was considered a personal venture or a generational legacy. Iconic owners like Jerry Jones of the Dallas Cowboys or the Steinbrenner family of the New York Yankees symbolized this era. However, as team valuations have skyrocketed driven by lucrative media rights, international expansion, and new revenue streams many owners are tapping private equity funds to unlock liquidity without relinquishing full control.

In August 2024, the NFL officially amended its ownership rules to permit approved private equity funds to acquire up to 10% stakes in teams. These stakes are passive investments without voting rights but allow PE firms to hold interests across multiple teams and leagues. Already, Ares Management purchased a 10% stake in the Miami Dolphins, valued at $8.1 billion, and Arctos Partners acquired 10% of the Buffalo Bills, valued at $5.3 billion. According to Akin Gump’s 2025 report on private equity in sports, this trend is expected to accelerate as more teams seek capital injections to fuel growth and innovation.

Financial Growth vs. Fan Experience

From a financial perspective, private equity involvement brings benefits: diversified portfolios, revenue stability, and access to capital for stadium upgrades, player development, and global marketing. The global sports market, worth over $460 billion and projected to nearly double by 2030, offers compelling returns that have outpaced traditional investments like the S&P 500 over two decades.

Yet, fans often view these developments with skepticism. Critics argue that PE’s profit-driven motives clash with the emotional and cultural fabric of sports franchises. When ownership prioritizes financial engineering over competitive success, it risks alienating loyal fan bases. The fear is that teams become mere assets to be flipped or restructured rather than cherished community institutions.

The Billionaire Factor: Are They the Problem?

While private equity firms are entering the scene, billionaire owners still wield significant influence. Some fans blame these ultra-wealthy owners for decisions that prioritize profits such as relocating teams, increasing ticket prices, or cutting costs on player salaries. However, experts note that the influx of PE capital often reflects owners’ desire to monetize their investments without selling outright.

PitchBook analyst Kyle Walters explains, “Private equity is not here to run the team day-to-day but to provide liquidity and financial expertise. The real question is how this capital influences long-term strategy and fan engagement.” The NFL’s stipulation that PE stakes be passive and non-voting aims to preserve operational control with traditional owners.

Looking Ahead: A New Ownership Landscape

Today, 71 major North American sports teams, collectively valued at over $205 billion, have some level of private equity involvement, yet more than half of the 153 teams across the NFL, NBA, MLB, NHL, and MLS remain free of PE influence. The potential for growth is vast, especially as private equity eyes emerging sectors like women’s sports, college athletics, and esports.

The challenge for leagues and fans will be balancing financial innovation with the preservation of team identity and competitive integrity. As ownership models evolve, transparency and fan engagement will be critical to maintaining trust.

The private equity takeover of sports teams is a double-edged sword. On one hand, it injects much-needed capital and professional management into an industry experiencing explosive growth. On the other, it risks commodifying beloved franchises, alienating fans who fear their teams are becoming mere financial assets.

As Akin Gump’s 2025 analysis concludes, “Sports teams are unique assets with passionate fan bases that offer intangible value beyond financial returns.” Whether billionaires and private equity firms will ruin or revitalize your favorite team depends largely on how they balance profit motives with the heart and soul of sports.