Weekend Sports Headlines: Premier Sports Updates in the Private Equity World
Private Equity Firms Increasingly Invest in Major League Baseball
Private equity (PE) firms are increasingly investing in Major League Baseball (MLB), reshaping team ownership structures and valuations. This trend began in 2019 when MLB started allowing private equity investments in family-owned teams, a significant shift from earlier restrictions [1].
One of the latest investments in MLB is Sixth Street Partners' acquisition of a stake in the San Francisco Giants [2]. This move marks Sixth Street Partners' first investment in MLB. As of now, 18 out of the 30 MLB teams have ties to private equity, with 10 receiving direct investment [4].
The influx of PE capital has allowed franchise valuations to rise sharply, with teams often valued between $8 billion and $12 billion. For instance, the Fisher family, controlling 95% of the Oakland Athletics, is seeking to sell a minority stake valuing the team at around $2 billion to help finance a new stadium in Las Vegas [1].
On the minor league side, a single PE-backed company, Diamond Baseball Holdings (backed by Silver Lake), has acquired 45 minor league teams since late 2021, controlling over 35% of the minor league market [3]. This consolidation under PE ownership has introduced significant changes, including team relocations and centralized management of multiple franchises.
These PE investments have contributed to rising team valuations and revenue growth. For example, Atlanta Braves Holdings reported an 8% increase in baseball revenue in Q2 2025 driven by expanded streaming rights and sponsorships [5].
Meanwhile, in the world of motorsport, Willow Springs International Raceway, one of Southern California's most historic motorsport venues, has been acquired by CrossHarbor Partners in collaboration with Singer Vehicle Design [6].
In the realm of sports technology, KKR-backed PlayOn has acquired MaxPreps from Paramount's CBS Sports. The acquisition integrates MaxPreps with PlayOn's GoFan and NFHS Network to create a centralized platform for high school sports [7].
Lastly, Endeavor Group Holdings, which owns Chelsea Football Club, has undergone a strategic repositioning, operating as a standalone business while remaining part of the BlueCo investment portfolio. Chelsea Football Club, owned by a consortium led by private equity firm Clearlake Capital and investor Todd Boehly, reported a pre-tax profit of £128.4m for the year ending June 2024, marking a sharp recovery from the £90.1m loss in the previous year [8].
This trend of private equity investment in sports leagues, particularly MLB, is expected to continue as investors seek resilient assets in the sports sector. The unified offering from the acquisitions will provide fans with ticketing, live streaming, scores, rosters, data, and highlights across various sports and high schools, creating a comprehensive platform for sports enthusiasts.
References:
[1] MLB Allows Private Equity Investments in Family-Owned Teams [2] Sixth Street Partners Acquires Stake in San Francisco Giants [3] Diamond Baseball Holdings Acquires Minor League Teams [4] PE Investment in MLB Teams on the Rise [5] Atlanta Braves Holdings Reports Revenue Growth [6] CrossHarbor Partners Acquires Willow Springs International Raceway [7] PlayOn Acquires MaxPreps from CBS Sports [8] Chelsea Football Club Reports Pre-Tax Profit
- Private equity firms, such as Sixth Street Partners, are actively investing in Major League Baseball teams, reshaping their ownership structures.
- As a result of this trend, more than half of MLB teams now have ties to private equity firms, with some receiving direct investment.
- The influx of private equity capital has led to a significant increase in team valuations, with teams often valued between $8 billion and $12 billion.
- In a similar vein, private equity firms like CrossHarbor Partners are investing in other sports sectors, such as motorsport and historic racing venues.
- Sports technology companies, like KKR-backed PlayOn, are also targeting opportunities in the sports sector through acquisitions.
- For example, PlayOn recently acquired MaxPreps, integrating it with GoFan and NFHS Network to create a centralized platform for high school sports.
- Endeavor Group Holdings, the owner of Chelsea Football Club, has undergone strategic repositioning and is part of the BlueCo investment portfolio.
- Private equity-backed consortiums continue to invest in sports leagues, with the expectation that this trend will grow, providing a comprehensive platform for sports enthusiasts across various sports and high schools.
