The recent agreement by billionaire investor Mark Walter to acquire a majority stake in the Los Angeles Lakers at a $10 billion valuation is more than a headline-grabbing deal. It signals a deeper structural shift in how private capital is being deployed.
Professional sports franchises are no longer viewed purely as prestige assets. They are now being treated as a credible and strategic allocation within Family Office portfolios.
There are additional transactions reinforcing the trend. Julia Koch and her family acquired a minority stake in the New York Giants at a valuation exceeding $10 billion. Furthermore, three Bay Area-based families, including Khosla family, purchased 6% of the San Francisco 49ers at an $8.5 billion valuation.
All of these reflect a broader re-rating of sports as an investable asset class, one that is attracting growing attention from Family Offices globally.
A Growing Allocation for Family Capital
According to the Goldman Sachs Family Office Investment Insights Report, around 25% of Family Offices already invest in sports, with another 25% actively exploring opportunities. Reporting from CNBC suggests that roughly half of Family Offices either have exposure or intend to invest, despite a broader pullback from venture capital and startup investing.
In our experience, this aligns closely with what we are seeing in the market. Over the past 12-24 months, interest in sports investing has become a recurring theme across Family Office conversations, from conferences and peer networks to direct deal flow discussions. What was once considered a niche or opportunistic allocation is now being evaluated as part of a broader allocation strategy. Importantly, the appeal goes beyond financial returns; it can sometimes be the principal’s personal passion, making it a uniquely interesting asset within portfolios.
Performance data also supports the case. The Ross-Arctos Sports Franchise Index (RAFSI) found that, from 2000 to 2024, top professional sports franchises produced roughly 1,260% returns compared to 620% for the S&P 500. Beyond the financial return, this growing interest is also being shaped by how Family Offices deploy capital today. Many are shifting toward assets that combine long-term value creation, downside protection, and tangible engagement. Sports fit perfectly into that framework. It offers not just financial returns, but access, community, and identity, whether through ownership stakes, partnerships, or ecosystem investments.
Why Team Valuations Continue to Rise
Forbes estimates that the world’s most valuable sports teams are now worth hundreds of billions collectively, with sharp increases in average valuations in recent years.
Several structural factors underpin this growth:
Scarcity that cannot be replicated
There are only 30 teams in the National Basketball Association (NBA) and 32 in the National Football League (NFL). This finite supply creates a natural scarcity premium. As more ultra-wealthy investors compete for a limited number of assets, valuations are pushed higher.
Locked-in media economics
Media rights deals underpin franchise values. With roughly $77 billion in NBA agreements and $111 billion in NFL deals, teams benefit from long-term, highly visible revenue streams that resemble contracted cash flows.
Expanding global demand
These teams are global brands. Digital distribution, streaming, and international fan bases continue to expand monetisation opportunities well beyond traditional markets.
Multi-layered revenue models
Modern franchises generate income across broadcasting, sponsorships, ticketing, merchandising, and real estate. This diversification strengthens financial resilience and supports premium valuations.
Why Sports Appeal to Family Offices?
Beyond performance, sports franchises offer a set of characteristics that align closely with Family Office priorities:
- Inflation protection through pricing power and media-linked revenues
- Low correlation to public markets
- Tax efficiency via depreciation of contracts and infrastructure
- Long-duration holding potential, often across generations
Perhaps most importantly, they offer something few other assets can: legacy.
Owning a stake in a major franchise embeds a family name into a cultural institution, creating visibility and continuity that few other assets can match. This unique combination of emotional appeal with disciplined long-term value creation is what draws Family Offices in.
With strong historical returns, structural scarcity, and expanding revenue opportunities, sports franchises have become one of the most compelling alternative assets available today. And Family Offices are helping to define this.
For Family Offices, the conversation is shifting from why invest in sports to how to access opportunities in an increasingly competitive market. As more capital targets a finite pool of assets, access, structuring and governance become critical considerations.
At Agreus we work with Family Offices globally to improve governance structures, review compensation packages, and build a strong team. Contact our team to discuss how we can support you. We will continue to monitor the news in the industry and add value to our network by providing insights, opinions and thought-leadership on issues relevant to the Family Office environment.
If you are looking to attract talent that specialises in direct transactions in sports investment for your Family Office, or if you are a talent with relevant experience looking to enter the Family Office space, please do not hesitate to reach out.