Owning a Sports Team: A Love‑Letter or a Smart Bet?

A recent deal saw a billionaire buy a stake in a soccer club for about $700 million, sparking debate over whether sports ownership is a better investment than the stock market. The owner, who also holds part of a Major League Baseball team and has poured hundreds of millions into soccer, admits that if he had simply put his money in a diversified fund, the return would likely have been higher. He points out that over 46 years the Lakers grew from $67. 5 million to $10 billion, a yearly gain of 11. 5 %. By contrast the S&P 500 earned 12. 4 % in that period, meaning a $67. 5 million investment could have reached roughly $16 billion in the market. Despite this, he chose soccer because it felt like a hobby and a way to support his hometown. He says many other investors now can join the sport‑ownership club, thanks to new rules that let private‑equity funds buy teams.

However, he warns clients to treat sports as a separate asset class. It is not purely about profit; many owners invest for fun or community impact, and the market for teams can be volatile. He recommends that wealthy investors first diversify through traditional private‑equity funds before adding a sports stake. If they still want non‑stock exposure, they should choose well‑established firms that have strong relationships with leagues. The rise in team values is fueled by huge media‑rights deals that bring billions into the leagues, but valuations also rise because owners are willing to pay a premium for ownership prestige. Still, the long‑term payoff is uncertain and depends on future media deals and league growth. In short, buying a sports team can be a passion project or a speculative bet; the decision should rest on whether the owner values the experience more than the potential financial return.

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