The authors examine sports as an increasingly institutionalized asset class, arguing that soaring franchise values and conservative balance sheets create a financing gap. The global sports economy exceeds $2.5 trillion, while teams average roughly 10% loan-to-value, leaving room for private credit and hybrid capital as institutional participation expands.
The Financing Gap in Sports
Apollo
Al Tylis
Research
21 Pages
Key Takeaways
Franchises compound: Sports franchise valuations compounded roughly 13% annually over six decades, outpacing equities at 10.5% and a 60/40 portfolio at 9.0%.
Balance sheets underlevered: Teams average only about 10% loan-to-value versus 40%-70% across other asset-intensive sectors, creating room for credit and hybrid financing.
Capital is entering: Global sports investment rose from $38 billion in 2022 to $56 billion in 2024, while institutional participation remains relatively early.
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