Mergers and acquisitions (M&A) have become pivotal in shaping the global sports industry, driven by factors such as media rights expansion, globalization, digital transformation, and the pursuit of prestige. From iconic football clubs in Europe to basketball franchises in the U.S., and emerging markets in Asia and Africa, M&A activities are reshaping the sports landscape.
Legal Aspect of Acquiring a Sports Club
Acquiring a sports club involves navigating a complex landscape of legal requirements and league-specific regulations, which vary significantly across different sports and jurisdictions.
Football (Soccer): In Germany, the “50+1” rule mandates that clubs must hold a majority of their own voting rights, ensuring that external investors cannot gain control over the club’s decisions. This rule aims to preserve the club’s identity and protect it from commercial overreach. Exceptions exist for entities that have significantly funded a club for over 20 years, such as Bayer Leverkusen and VfL Wolfsburg.
Basketball (NBA): The NBA requires prospective owners to undergo a rigorous approval process, including financial vetting and background checks. Ownership groups are typically limited in size, and there are restrictions on the amount of debt that can be used to finance a purchase. For instance, the NBA has specific rules about the maximum number of individuals in an ownership group and the percentage of the team each can own.
American Football (NFL): The NFL has historically maintained strict ownership rules, but in 2024, it approved a policy change allowing private equity firms to invest in teams. These firms can now acquire minority stakes, capped at 10% per team, and are required to invest at least $2 billion across multiple teams. This move aims to provide team owners with new capital sources while maintaining the league’s operational ethos.
Formula 1: Ownership of Formula 1 teams involves compliance with the Fédération Internationale de l’Automobile (FIA) regulations. Prospective owners must demonstrate financial stability, technical capability, and a commitment to the sport’s competitive integrity. The FIA conducts thorough evaluations to ensure that new owners can sustain the high costs associated with Formula 1 participation.
Acquiring a sports club requires adherence to a myriad of legal and regulatory frameworks, each tailored to preserve the integrity and unique characteristics of the respective sport. Prospective owners must be prepared to meet financial requirements, undergo rigorous vetting processes, and respect the cultural and operational norms established by governing bodies.
Global M&A Trends in Sports
The frequency of M&A deals in the sports sector has surged, with private equity firms, sovereign wealth funds, and high-net-worth individuals investing heavily. Motivations include:
- Revenue Growth: Capitalizing on media rights, merchandising, and global fanbases.
- Asset Appreciation: Sports franchises often increase in value over time.
- Prestige and Influence: Owning a sports team offers societal status and networking opportunities.
- Diversification: Investors seek to diversify portfolios with sports assets.
Notable M&A Deals by Region and Sport
Europe
- Football:
- Inter Milan: In 2024, Oaktree Capital assumed control after previous owners defaulted on a €395 million loan.
- Standard Liège: Acquired by 777 Partners in 2022 for €55 million; faced financial challenges leading to asset seizures in 2024.
- Genoa CFC: Purchased by 777 Partners in 2021 for €150 million; ownership disputes arose in 2024.
- Basketball:
- ASVEL Basket: OL Groupe acquired a 25% stake in 2019, aiming to integrate basketball into their sports portfolio.
United States
- Basketball:
- Boston Celtics: Sold for a record $6.1 billion to a group led by private equity mogul Bill Chisholm in 2025.
- American Football:
- Washington Commanders: Acquired by Josh Harris for $6 billion in 2023.
- Baseball:
- Baltimore Orioles: Purchased by David Rubenstein for $1.725 billion in 2023.
Asia
- Football:
- Olympique Lyonnais: In 2016, IDG Capital acquired a 20% stake for €100 million, aiming to expand the club’s presence in China.
Africa
- While M&A activities in African sports are less frequent, there is growing interest from investors seeking opportunities in emerging markets.
Australia
- Football:
- Melbourne Victory FC: 777 Partners acquired a minority stake in 2022, with plans to increase ownership to 70% over five years.
Investment Funds and Foundations in Sports M&A
- TWG Global: Founded by Mark Walter and Thomas Tull, TWG holds stakes in the LA Dodgers, LA Lakers, Chelsea FC, and various motorsport entities.
- CVC Capital Partners: Notable for investing in Formula One, Six Nations Rugby, La Liga, and the Indian Premier League.
- Qatar Sports Investments (QSi): Owns Paris Saint-Germain and holds stakes in S.C. Braga and Monumental Sports & Entertainment.
- Sport Republic: Backed by Dragan Šolak, owns stakes in Southampton FC, Göztepe, and Valenciennes.
- Chien Lee: Invested in multiple European football clubs, including OGC Nice, Barnsley FC, and 1. FC Kaiserslautern.
Analysis of Successes and Challenges
Successes:
- Formula One: CVC Capital Partners’ investment led to significant growth, culminating in an $8 billion sale to Liberty Media in 2016.
- OGC Nice: Under Chien Lee’s ownership, the club qualified for the UEFA Champions League for the first time.
Challenges:
- Standard Liège: Financial mismanagement under 777 Partners led to fan protests and legal issues.
- Genoa CFC: Ownership disputes and relegation issues have plagued the club post-acquisition.
Strategic Decisions:
Investments are often driven by a mix of profitability and prestige. For instance, owning a top-tier football club offers both financial returns and societal status. However, mismanagement can lead to financial losses and reputational damage.
Top 20 Notable Sports M&A Deals
| Year | Deal | Value |
| 2025 | Boston Celtics sold to Bill Chisholm-led group | $6.1B |
| 2023 | Washington Commanders acquired by Josh Harris | $6B |
| 2023 | Baltimore Orioles purchased by David Rubenstein | $1.725B |
| 2024 | Foxtel acquired by DAZN | $2.2B |
| 2024 | Rogers Communications increases stake in MLSE | $3.5B |
| 2022 | Standard Liège acquired by 777 Partners | €55M |
| 2021 | Genoa CFC purchased by 777 Partners | €150M |
| 2016 | OGC Nice acquired by Chien Lee | €20M |
| 2016 | IDG Capital acquires stake in Olympique Lyonnais | €100M |
| 2019 | OL Groupe acquires stake in ASVEL Basket | €3.4M |
| 2019 | OL Groupe acquires Reign FC | $3.51M |
| 2022 | Göztepe acquired by Sport Republic | Undisclosed |
| 2023 | Valenciennes acquired by Sport Republic | Undisclosed |
| 2022 | Melbourne Victory FC stake acquired by 777 Partners | AU$8.7M |
| 2024 | Inter Milan taken over by Oaktree Capital | €395M (loan default) |
| 2022 | Vasco da Gama sold to 777 Partners | R$700M |
| 2022 | Red Star FC (France) acquired by 777 Partners | Undisclosed |
| 2022 | FC Kaiserslautern stake acquired by Chien Lee | Undisclosed |
| 2023 | GKS Tychy acquired by Chien Lee and The Seelig Group | Undisclosed |
| 2023 | S.C. Braga stake acquired by QSi | €80M |
In December 2023, Mark Cuban sold a 69% majority stake in the Mavericks to Miriam Adelson and her son-in-law, Patrick Dumont, at a franchise valuation between $3.8 billion and $3.9 billion. Cuban retained a 27% stake and continues to oversee basketball operations, while Dumont serves as the team’s governor on the NBA Board of Governors.
The Adelson family’s acquisition, funded by selling $2 billion in Las Vegas Sands Corp. stock, is notable for being one of the largest cash transactions in NBA history. Their involvement brings substantial real estate and hospitality expertise, aligning with Cuban’s vision of transforming Dallas into a premier destination, potentially featuring a new arena integrated with resort and casino amenities.
This strategic partnership reflects a broader trend in sports M&A, where investors seek to leverage synergies between sports franchises and related industries like entertainment and real estate. The Mavericks’ sale underscores the evolving dynamics of sports ownership, where financial, operational, and experiential considerations converge.
The sports industry’s M&A landscape is dynamic, with investments driven by both financial ambitions and the allure of prestige. While many deals have yielded positive outcomes, others underscore the challenges of managing sports entities effectively. As the industry continues to evolve, strategic investments and sound management will be crucial for sustained success.