Sports Investing: Big league opportunities

Sport has become a sizeable and increasingly sophisticated business ecosystem globally. Further growth is expected, driven by digitalisation, globalisation and the continued expansion of fan engagement models.

This PERSPECTIVES Special, focused on the leading North American sports leagues and the English Premier League, examines why professional sports have become such an interesting investment opportunity. We identify the most important shifts in sports investing over the last decade, why investors are looking at sports today as part of a broader portfolio, the particular characteristics of sports investment and what to be mindful of before committing capital. Powerful brands, recurring revenues, global audiences and strong pricing power already make for a potentially appealing mix – and further growth opportunities may lie ahead.

• Clubs in the large North American leagues and the English Premier League can benefit from their own scarcity, potential long-term value appreciation, low sensitivity to economic downturns and limited correlation with traditional investment classes.
• Valuations have been supported by media rights, sponsoring, global fan engagement and a broader investor base. Some of these factors look likely to prove more durable than others.
• Private investment in sports can be achieved through private equity or private credit, via multiple access routes from direct to indirect investment. The approach taken will depend on investors, risk appetite, liquidity tolerance and desire for control.

The PERSPECTIVES Special is currently available and client-ready for the following regions: Germany, Americas, Europe, Middle East, Africa and Asia Pacific.

In Europe, Middle East and Africa as well as in Asia Pacific this material is considered marketing material, but this is not the case in the U.S. The value of an investment can fall as well as rise and you might not get back the amount originally invested at any point in time. Your capital may be at risk. No assurance can be given that any forecast or target can be achieved. Forecasts are based on assumptions, estimates, opinions and hypothetical models which may prove to be incorrect. Past performance is not indicative of future returns. Performance refers to a nominal value based on price gains/losses and does not take into account inflation. Inflation will have a negative impact on the purchasing power of this nominal monetary value. Depending on the current level of inflation, this may lead to a real loss in value, even if the nominal performance of the investment is positive. This web page is not an offer to buy a security or enter into any transaction. The products, services, information and/or materials contained within these web pages may not be available for residents of certain jurisdictions. Please consider the sales restrictions relating to the products or services in question for further information. Deutsche Bank does not give tax or legal advice; prospective investors should seek advice from their own tax advisers and/or lawyers before entering into any investment.