Key Takeaways
- • Deal volumes in sports investment are falling while deal sizes rise, with Macfarlanes' analysis of Preqin data covering 540 sports transactions from January 2021 to October 12, 2026.
- • Clearlake Capital agreed to buy the combined 25% stake of Todd Boehly and Mark Walter in Chelsea FC at a c. £5bn valuation, per the article's footnotes citing Chelsea FC's ownership transition announcement of 16 September 2026.
- • A consortium led by the Mittal family and Adar Poonawalla agreed to buy the Rajasthan Royals and sister franchises for $1.65bn.
- • Franchise values have compounded at roughly 13% per year over six decades, while North American leagues cap passive institutional stakes at 15% per fund in MLB and 10% in the NFL.
- • Teams are financed at around 10% loan-to-value versus 40-70% in other asset-intensive sectors, with only 27 private debt financings in sport recorded from 2021 to 2026 YTD.
Summary
Private capital and private wealth continue to pour into global sports assets, with investors valuing sport's defensive qualities as live, unscripted competition offers a counterweight to AI-driven disruption of traditional businesses. According to Macfarlanes, this confidence has produced a run of large transactions. Over the summer of 2026, Clearlake Capital agreed to buy out the combined 25% stake of Todd Boehly and Mark Walter in Chelsea FC at a c. £5bn valuation. Arctos agreed its fourth NFL stake, with the Atlanta Falcons, and Apollo proposed putting €1bn into the Bundesliga. A consortium led by the Mittal family and Adar Poonawalla agreed to buy the Rajasthan Royals and its sister franchises for $1.65bn. FIFA proposed, and later dropped, the sale of interests in its commercial and event operations, including the FIFA World Cup, pooled into an investment vehicle valued at c. $20bn.
The article identifies a broader pattern in which deal volumes are falling as deal sizes rise. Macfarlanes attributes this to three forces. First, valuations have outrun the buyer pool: franchise values have compounded at roughly 13% per year over six decades, and as entry prices rise, fewer parties can write the required cheques. Those that can are concentrating larger sums in premium assets with contracted league-level cash flows, where monetisation is more proven than in emerging leagues or lower tiers.
Second, league rules keep the buyer pool small. North American leagues admit institutional capital mainly through capped, passive minority stakes, at 15% per fund in MLB and 10% in the NFL. As a result, a small group of approved large-cap specialists, led by Arctos, Ares and Sixth Street, continues to execute a concentrated stream of large deals. Per Macfarlanes analysis of Preqin data, Arctos has completed 19 deals, Ares 16 and Sixth Street 8.
Third, owners are equity-rich but illiquid. Teams are financed at around 10% loan-to-value, compared with 40-70% in other asset-intensive sectors, as league debt limits and a tradition of equity funding have left value locked in franchise balance sheets. Owners seeking liquidity have therefore mainly turned to minority stake sales, while borrowing remains little used, with only 27 private debt financings in sport recorded from 2021 to 2026 YTD, according to Apollo's 2025 report 'The Financing Gap in Sports'.
Looking ahead, Macfarlanes sees opportunities from minority stakes in premium franchises to structured equity, preferred equity and private credit for equity-rich owners who need liquidity without surrendering control. Consortia and co-investment vehicles, often with athlete participation, are becoming more prevalent as large-cap sponsors and ultra-high-net-worth investors seek to spread equity risk without losing control. The firm notes that experienced advisers can help investors negotiate minority protections and exit routes within league rules, structure financing that fits league debt limits, and test how durable an asset's revenue is, whether it rests on long-term media deals or on newer, less proven income streams.
The article identifies a broader pattern in which deal volumes are falling as deal sizes rise. Macfarlanes attributes this to three forces. First, valuations have outrun the buyer pool: franchise values have compounded at roughly 13% per year over six decades, and as entry prices rise, fewer parties can write the required cheques. Those that can are concentrating larger sums in premium assets with contracted league-level cash flows, where monetisation is more proven than in emerging leagues or lower tiers.
Second, league rules keep the buyer pool small. North American leagues admit institutional capital mainly through capped, passive minority stakes, at 15% per fund in MLB and 10% in the NFL. As a result, a small group of approved large-cap specialists, led by Arctos, Ares and Sixth Street, continues to execute a concentrated stream of large deals. Per Macfarlanes analysis of Preqin data, Arctos has completed 19 deals, Ares 16 and Sixth Street 8.
Third, owners are equity-rich but illiquid. Teams are financed at around 10% loan-to-value, compared with 40-70% in other asset-intensive sectors, as league debt limits and a tradition of equity funding have left value locked in franchise balance sheets. Owners seeking liquidity have therefore mainly turned to minority stake sales, while borrowing remains little used, with only 27 private debt financings in sport recorded from 2021 to 2026 YTD, according to Apollo's 2025 report 'The Financing Gap in Sports'.
Looking ahead, Macfarlanes sees opportunities from minority stakes in premium franchises to structured equity, preferred equity and private credit for equity-rich owners who need liquidity without surrendering control. Consortia and co-investment vehicles, often with athlete participation, are becoming more prevalent as large-cap sponsors and ultra-high-net-worth investors seek to spread equity risk without losing control. The firm notes that experienced advisers can help investors negotiate minority protections and exit routes within league rules, structure financing that fits league debt limits, and test how durable an asset's revenue is, whether it rests on long-term media deals or on newer, less proven income streams.
Go deeper than the headline
Research every firm in this story, track the ones that matter and get the daily briefing — free for 7 days.