Sports Technology Market Update – April 2025

Private Equity Penetration Supports M&A Rebound in Sports Technology Market

Capstone’s latest Sports Technology Market Update reports that merger and acquisition (M&A) activity in the sector has ticked higher year to date (YTD), supported by accelerating franchise and media rights valuations, demand for innovative consumption formats, and ancillary products and services.

Institutional capital has continued to flow into the sports ecosystem. Major U.S. sports leagues have historically restricted private equity (PE) investment in team ownership due to concerns about potential conflicts of interest and a focus on short-term profits over long-term franchise success. However, major U.S. leagues have recently opened the door for institutional capital investments, creating a frenzy of PE interest in team ownership and the ancillary business opportunities that come with it. Major League Baseball (MLB) was the first blue chip league to allow PE ownership in 2019. Later that year, the National Hockey League (NHL) followed suit. The National Basketball Association (NBA) and Major League Soccer (MLS) allowed PE funds to invest in teams during 2020 and the National Football League (NFL) permitted the ownership class in franchises in 2024. The NBA, NHL, MLB, and MLS have now allowed institutional investments up to 30% of ownership stakes while the NFL has capped ownership at 10%, according to Sportico. Single fund ownership caps vary across the leagues, with half enforcing a 20% maximum. The scarcity of professional sports franchises across a limited number of leagues has led to bidding wars, uplifting valuations and expediting the rule changes.

The Sports Technology market has experienced an uptick in dealmaking, with 26 transactions announced or completed YTD, a 30% increase compared to the prior year period. M&A volume in the sector was pressured in the period following 2021, characterized by expensive acquisition underwriting and the widely publicized collapse of Silicon Valley Bank. The sector’s underlying demand dynamics have only strengthened since deal flow peaked in 2021, laying the groundwork for a rebound in sector M&A in 2025. Supporting sector growth, the United Football League (UFL) launched a new division in 2025 called Football Advancement through Sports Technology (FAST) that will allow companies to test and launch innovative sports media and technology solutions. To date, assets in the Sports Betting and Media spaces have continued to draw acquirer interest. Capstone expects to see increasing M&A in Sports Tourism, Youth Sports, and other high-growth segments as the sector continues to mature.

Also included in this report:

• A synopsis of institutional capital inflows in the Sports Technology market and why private equity firms find the space so attractive.
• Trends analysis in the growing “Sportainment” segment.
• A breakdown of M&A activity to date, including detailed highlights of notable transactions by buyer type.
• Growth equity deal volume, financing value, and pre-money valuation insights.
• A summary of Endeavor’s (NYSE:EDR) recent capital markets activity, including its take-private acquisition by PE firm Silver Lake.

Capstone Partners’ Consumer Investment Banking Team provides M&A, capital formation, and financial advisory services to the owners of middle market businesses in the consumer and retail industries. Our team partners with leading mid-to-large sized business in the Sports Technology market that serve growing end-markets. For more information on Sports Technology market trends featured in this report or to speak with one of our Consumer Investment Banking Team members about how to grow, value, and/or sell your company, we are here to help. Contact us today to start a conversation.