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As sport transforms into a dynamic and lucrative asset class, the environmental crisis is accelerating. Savvy sports investors are increasingly factoring in growing climate risks, recognizing their potential to disrupt operations and erode returns.

The global appeal of viewing sports as an investment includes lucrative media rights, and the potential for substantial returns is attracting private equity firms, sovereign wealth funds, as well as affiliations with institutional investors, celebrities and athletes. No longer just “trophy assets,” men’s and women’s sports teams now present viable investment opportunities.

Even with economic headwinds, investors are bullish on sports. Celebrity investors Mark Cuban, Rashaun Williams, and Steve Cannon have launched a joint sports-focused private equity fund, looking to raise $750 million to target minority investments in National Basketball Association, Major League Baseball, and National Football League teams. Meanwhile, legendary golfer Rory McIlroy has teamed up with the investment firm TPG to launch a new sports investment fund, and, separately, Standard Chartered launched a fund focused on sports for high net worth clients. These are just announcements from the past several weeks. So far, 2025 is turning out to be a groundbreaking year of investing in sports.

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Climate Risks For Sports Investment

Financial prospects are enticing, but the escalating climate crisis creates risk for sport investments. By 2050, corporate exposure to climate risks is expected to triple, according to Maplecroft consulting firm, putting more than $1.14 trillion in market value at risk for companies on the world’s largest stock exchanges.

This includes sports organizations, which are particularly vulnerable due to their reliance on physical infrastructure and scheduled events. Investors in sport need to “consider how exposed their investment portfolios are to physical climate risks,” Daniel Keir, climate resilience specialist at Zurich Resilience Solutions, told me in an interview. Hazards differ according to geography, but include flooding, wildfires, extreme heat, storm surges, and other severe weather events. NFL stadiums could face an estimated $11 billion in climate-related losses by 2050.

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As well as physical threats to infrastructure, such as extreme weather causing roofs to come off stadiums, or golf courses disappearing due to coastal erosion, sports face additional financial risks stemming from the climate crisis. Organizers may face rising insurance premiums and revenue disruption from ticketing, sponsorship or broadcast if events are cancelled or altered. If values aren’t aligned, revenue can be missed from potential sponsors with a strong sustainability ethos, and conversely, partnering with unethical or polluting organizations can cause reputational risks.

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It’s worth noting that direct climate impacts on a stadium can have broader investment ramifications too. “Stadiums often act as economic anchors and catalysts for broader urban development,” Austin Clack, Climate X’s physical risk solutions lead for North America, told me. “Climate risks that endanger these assets can reduce investor confidence and stall development plans in the surrounding area, leading to stranded project investment and overall lowered investment inflow into communities.”

Investor Perspectives On ESG And Climate Risk For Sport

Despite growing awareness and risk, these considerations are not yet central to all investment decisions in the sports sector. “If the internal rate of return doesn’t stack up, environmental, social, and governance initiatives won’t save the deal and if the internal rate of return is strong but there are climate risks, the investment can still go ahead,” Michael Broughton, founder of Sports Investment Partners LLP, told me.

Climate risks may currently only filter as a priority for investors when they create the potential for a tangible impact on forecasted cash flow, but they are a consideration. The United Nations-supported Principles for Responsible Investment encourage investors to always incorporate ESG issues into investment analysis and decision-making processes.

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Climate risks are likely to be a larger consideration for investment in smaller sports clubs, where a more direct line can be drawn between issues such as flooding and core revenue drivers such as match-day viability and income.

It’s not only financial risk, which naturally sits at the heart of investments, that needs to be considered. Reputational risk carries greater weight in sports due to heightened media attention and public scrutiny. This includes “changing consumer preferences regarding transparency and ethical behaviour,” says Philip Cronje, business unit manager of Aon South Africa’s sports, recreation and entertainment division.

Beyond mitigating risk, climate action presents a commercial upside for investors. There is a lot of opportunity for fan and sponsor engagement on this topic. Broughton believes “the fan comes first,” and that a better understanding of fans leads to better business outcomes. With sports fans increasingly engaging on climate issues, climate-positive initiatives can enhance the appeal of a sports organisation seeking investment. Sustainability is a strong selling point as part of a pitch. It enhances the story even if it’s not the core proposition.

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Overlook Climate Risk For Sports Investment At Your Peril

The integration of climate risk and ESG considerations into sports investments is evolving rapidly. As the financial implications of climate change become increasingly apparent, investors are likely to place greater emphasis on sustainability, and look more intently at risk. Although climate risk or sustainability may not yet be deal breakers in many sports investments, investors should consistently engage on these issues when considering any opportunity in the sector.

Aligning investment strategies with this engagement will not just safeguard and future-proof assets, but also unlock upsides through fan trust and sponsorship appeal. In the melting pot of an evolving sports investment landscape and accelerating climate crisis, prioritizing climate risk and sustainability isn’t just a tick-box exercise. It is a strategic imperative that is fundamental for success. Clack summed it up well in our interview, saying “investors should recognize that climate risk is not a distant concern but an imminent financial reality that must be factored into investment strategies immediately.”

Atlanta, GA, July 08, 2025 — Harbinger Sports Partners Fund I, LP, the $750 million private equity fund focused on minority investments in major U.S. professional sports franchises, led by industry heavy weights Mark Cuban, Steve Cannon and Rashaun Williams, proudly announces the appointment of Jonathan Mariner as General Partner.

A transformative figure in the business of sports, Mariner brings more than two decades of leadership at the highest levels of professional leagues, teams, and corporate boards. As former Chief Financial Officer and Chief Investment Officer of Major League Baseball, Mariner helped guide the league to sustained profitability, oversaw its $2 billion league-wide credit facility, and managed the creation and growth of MLB’s strategic investment fund to over $1.2 billion in assets. His career also spans roles as CFO of the Florida Marlins, Florida Panthers, and Dolphins Stadium, as well as significant board service across multiple Fortune 500 companies and innovative sports ventures.

“Jonathan’s unparalleled experience across league offices, franchises, media assets, and strategic investments makes him a generational addition to Harbinger,” said Rashaun Williams, Founder and Managing Partner. “He represents exactly what sets us apart: operational fluency, financial discipline, and a commitment to responsible ownership.”

“Joining Harbinger is an opportunity to help shape the next chapter of institutional investment in U.S. sports,” said Jonathan Mariner. “I look forward to combining my league-level perspective with the team’s operational and strategic expertise to unlock value for franchise partners and investors alike.”

Mariner joins an accomplished leadership team, including:

Rashaun Williams, Founder and Managing Partner, venture investor and Limited Partner of the Atlanta Falcons.

Steve Cannon, Co-Founder and Managing Partner, former CEO and Vice Chairman of AMB Sports and Entertainment (Atlanta Falcons, Atlanta United FC) and former CEO of Mercedes-Benz North America.

Mark Cuban, General Partner, longtime NBA owner of the Dallas Mavericks and investor.

Harbinger’s strategy remains focused on acquiring 1–5% minority stakes in a curated universe of 92 U.S.-based professional franchises, bringing data-driven rigor and operational insight to a historically illiquid asset class.

“Jonathan’s breadth of experience across finance, governance, and team operations will help us add tangible value to franchise partners,” said Steve Cannon, Co-Founder and Managing Partner. “We’re thrilled to welcome him to the team.”

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Apollo has already signed a number of sports deals through existing pools of capital, including issuing loans to football teams such as Nottingham Forest.

– Apollo Global Management and Ares Management are both pushing deeper into sports investing, the latest multibillion-dollar alternative asset managers to put more money into the booming sector.

Ares has begun talking to investors about a new media and entertainment fund designed for individuals, a departure from the traditionally exclusive nature of sports finance. The semi-liquid fund will target both debt and equity investments across sports leagues and businesses.

Meanwhile, Apollo is considering creating a permanent capital vehicle dedicated to sports finance, a structure that would allow for longer-term and strategic investments in the industry. The fund would primarily lend to professional sports teams and leagues, with the option to take equity positions.

Alternative fund managers like Ares and Apollo have been pouncing on opportunities to invest in sports teams, boosted by the National Football League’s landmark 2024 decision to allow private equity firms to own teams.

In May, Bloomberg reported that a group of professional sports team insiders, including billionaire Dallas Mavericks minority owner Mark Cuban, was launching a private equity fund aimed at taking small stakes in pro sports teams.

Arctos Partners, CVC Capital Partners and Ares have also been investing in leagues and teams, while Elliott Management and Oaktree Capital Management took ownership of football clubs after owners defaulted on their loans.

Ares’ new fund supports its push to reach individual investors amid rising demand from financial advisers seeking retail exposure to the asset class.

Ares is targeting US$100 billion (S$129 billion) in assets from individuals by 2028, which currently make up 8 per cent of its US$546 billion base.

If successful, it could generate about US$600 million in fees. The Los Angeles firm is also increasing its sports investments, having bought stakes in the NFL’s Miami Dolphins and other teams, and closed its first sports fund in 2022 with US$3.7 billion.

Meanwhile, New York-based Apollo has already signed a number of sports deals through existing pools of capital, including issuing loans to football teams such as Sporting Lisbon and Nottingham Forest.

“While sports teams, clubs and leagues often draw much of the attention, we believe the broader potential ecosystem of sports, media and entertainment investing is significant and under-penetrated,” Ares has said on its website.

The firm has estimated the total investment opportunity in “adjacent strategies” could be as much as US$2.5 trillion. BLOOMBERG

The most surprising aspect of the Buss family’s blockbuster deal to sell the Lakers to Mark Walter at a $10 billion valuation—which broke the record for a pro sports franchise sale by almost $4 billion—is that it isn’t really surprising.

The deal set a new benchmark for what a marquee franchise can command, significantly eclipsing the recently announced $6.1 billion sale of the Celtics. It may also have implications for future expansion fees and league ownership rules, experts say, although the exact effects won’t be clear for a while.

For now, the sports universe is still reacting to the news. The Lakers had been in the Buss family since 1979, when Jerry Buss bought the team, and other assets, including the NHL’s Los Angeles Kings and The Forum, where both the Lakers and Kings used to play, for a reported $67.5 million. When he passed away in 2013, the franchise went into a trust controlled by the six Buss children. In 2017, Jeanie Buss was installed as controlling owner after a contentious battle with her brothers that ended up in court.

Once the sticker shock of the $10 billion figure wore off, the reality of the current market for sports franchises set in.

“It was not hard for me to believe,” says longtime sports executive Dave Checketts. “The first thing I thought was ‘are we sure [Jerry Buss] is gone? To me, this sounded exactly like what he would do if he was going to sell the team.”

Tripp Crews and Tim Lee of business valuation and advisory firm Mercer Capital were also unsurprised. Although they believe the Lakers’ valuation is not very shocking, “caution is warranted when projecting the implied valuation of the Lakers onto other NBA teams.”

“Truly ‘premium’ brands in the professional sports space that could command this type of valuation are rare,” they tell FOS.

It is widely believed the Cowboys and Yankees are among the select group of teams that could surpass the Lakers’ valuation.

Jesse Silvertown, principal at forensic accounting firm The Ledge Company, tells FOS the valuation is “completely reasonable given the math and environment.” He also says to “keep an eye on what this means for potential NBA expansion fees,” which even before the Lakers deal were expected to reach as high as $5 billion.

NBA commissioner Adam Silver has not hidden from the NBA’s desire to expand—both with new teams domestically, including potential teams in Seattle and Las Vegas, as well internationally. In March, Silver announced the league is exploring a potential league in Europe with FIBA as partners.

Franchise Values Are Soaring

Franchise values have been on the rise, and recently it seems like each deal is breaking the record set by the last. Before the Celtics, the Commanders sold at a $6.05 billion valuation, and before the Commanders, the Broncos sold at a $4.65 billion valuation. The NFL has had recent minority investments valuing franchises in the $8 billion range (the 49ers and Dolphins), but the Celtics and Lakers stand as the two largest-ever change-of-control transactions for a pro sports franchise.

There are many reasons for the uptick in team values. For the NBA, the recent $77 billion media-rights deal that kicks in next season is a key factor.

Randall Boe, a senior counsel at law firm Akin Gump Strauss Hauer & Feld LLP, says the current state of NBA valuations can be traced back to the $2 billion sale in 2014 of the other Los Angeles franchise.

“The change in thinking that has really buoyed NBA valuations was when Steve Ballmer bought the Clippers,” says Boe, who previously served as EVP and general counsel for Monumental Sports & Entertainment—the holding company for Ted Leonsis’s sports assets, including the Wizards, Mystics, and Capitals.

“[Ballmer’s] reasoning was, ‘I have the money, this is an asset I love, and there aren’t that many of them,’” Boe tells FOS. “If you want to look at winners today, Steve Ballmer’s got to feel pretty good.”

Scarcity of Assets, Scarcity of Buyers

It’s correct to say there aren’t many of these assets; the NBA has 30 teams. Not only is there a scarcity of teams, however, there’s a scarcity of buyers.

Under NBA rules, the controlling owner must hold at least a 15% stake in the team. Walter, who already owned a 27% stake in the Lakers dating back to 2021, will need to put up a hefty sum, and is likely going to gather a group of investors to make up the rest of the purchase price.

Checketts, a seasoned executive with long tenures running the Knicks and Jazz, says private equity will come into play. “There’s going to be a big part of it that will be private equity,” he says.

Under NBA private-equity ownership rules, individual PE funds can own up to 20% stakes in as many as five franchises, but their ownership holdings are completely passive.

“Limitations on private equity are going to have to open up,” Checketts tells FOS.

The Unknown

The flashy announcement has been made, but there’s still a lot of unknown with the Lakers deal. According to ESPN, the Buss family will continue to hold a minority share of the team “for a period of time,” and Jeanie Buss will continue to run the team for “at least a number of years.” Per ESPN, that arrangement was “guaranteed” as part of the deal, and “Walter fully endorsed this plan.”

Just because ESPN is reporting that as being set in stone, will the NBA definitively allow it? Mark Cuban was supposedly going to stay on to oversee basketball operations for the Mavericks when he sold his majority stake at a $3.5 billion valuation in December 2023, but that didn’t end up working out, as Cuban was just as shocked as the rest of the world when Luka Dončić was traded to the Lakers. The jury is still out on exactly what will happen with the Celtics. In that deal, which is expected to be approved by the NBA board of governors next month, Wyc Grousbeck expects to stay on through the 2027–28 season.

Once the Lakers deal is complete, how will Walter—who has historically been private but is actually a very prominent figure in the world of sports ownership—feel about Jeanie Buss still being in the room and still being a key decision-maker?

“I don’t know why either party, seller or buyer, wants that to happen,” Checketts says. “I love Jeanie, she has been great for the NBA. But I actually think the Laker fandom would probably like a fresh start.”

George Pyne runs one of the more established sports-focused private equity investors, Bruin Capital, which has set itself apart with its international footprint. Bruin is pursuing new fundraising efforts.

In April, renowned dealmaker Michael Klein told the crowd at SBJ’s World Congress of Sports that it was “a dramatic overstatement” to say institutional capital had flooded into sports, noting the industry still is dominated by individual investors while in other mature sectors “institutional dollars are roughly equal to 80% to 90% of the asset class.”

But that is quickly changing, as private equity firms continue to carve out stakes across the sports landscape, and recent months have featured an influx of new fund launches. Private equity principals tell Sports Business Journal that those efforts highlight the growing need for differentiation among private equity firms in the sector.

To be sure, the pace of investment activity should only accelerate, given the latest wave of capital formation for sports dealmaking.

Longtime sports executive Dave Checketts has teamed up with Utah’s Eccles family to launch Cynosure | Checketts Sports Capital, which plans to raise at least $1.2 billion.

Mark Cuban, Steve Cannon and Rashuan Williams are behind Harbinger Sports Partners, now raising $750 million to acquire minority team stakes.

In January, Ariel Investments rolled out women’s sports investment platform Project Level, which has acquired stakes in League One Volleyball and the NWSL’s expansion team in Denver. Though the fund has not disclosed a target size, Jason Wright, managing partner and head of investments, said it will be “a mix of growth equity, private equity and real estate return profiles.” Fund literature suggests it’s seeking minimum investments of $50 million.

Those newcomers are joined by existing sports investors pursuing new fundraising efforts, a group that includes Bruin Capital, a spokesperson for the company confirmed.

That’s to say nothing of the sports investment firms launched in recent years that continue to raise. According to recent SEC filings, Dynasty Equity Partners is nearly 40% of the way to its $1 billion target, while Velocity Capital Management is just over halfway to raising a planned $500 million debut fund.

The uptick in new sports funds flies in the face of broader trends, with the number of overall private equity fund launches dwindling in recent years.

In January, research from S&P Global revealed that just more than 1,000 new private equity funds debuted in 2024, less than one-quarter the number of funds launched during the highs of 2021. Global fundraising efforts have likewise stalled in that time, with fund managers raising a total $680 million last year, down 30% year over year and a nearly 40% decline from the high of $1.1 trillion raised four years ago.

“The recent proliferation of sports-oriented investment funds shows that the industry is ascendent and continues to attract more and more professional capital. This is a very good thing,” said Michael Spirito, co-founding partner of Sapphire Sport. “With that proliferation, however, comes even more competition for that capital base, both institutional and strategic. This is especially true in a macro environment, where early- to mid-stage private returns are taking longer.”

Sapphire Sport succeeded in raising an oversubscribed $181 million second fund a few years ago, and Spirito stressed the value of Sapphire’s differentiated focus on backing tech-enabled companies that can “enhance the sport and entertainment sector, but that also serve a broader audience.”

“Unless you have a very specific lens on what you’re investing in and the differentiators for you as a fund, then it’s actually a challenging [fundraising] environment.” — Jason Wright, Ariel Investments, Project Level

The need for differentiation was echoed by numerous fund managers, most of whom noted that simply providing exposure to sports is no longer sufficient.

“Unless you have a very specific lens on what you’re investing in and the differentiators for you as a fund, then it’s actually a challenging [fundraising] environment,” said Wright, noting Project Level’s ambitions to bring new scale and operational expertise to women’s sports properties. “We are finding it’s a unique value proposition.”

Project Level follows Monarch Collective, which launched in 2023 as the first fund specific to women’s sports. That sharp focus helped it blow past an initial $100 million target, with the firm closing a $250 million debut fund in March.

Wright also noted the benefit of operating within Ariel and alongside its co-CEO and President Mellody Hobson, which “makes us not feel like a new fund.”

Few, if any, sports-focused private equity investors are more established than Bruin, which was founded by CEO George Pyne in 2015. Pyne wouldn’t comment on his firm’s current fundraising efforts, citing SEC restrictions around solicitation, but he said Bruin has long sought to stand apart from the crowd. That’s included a focus on international dealmaking: Bruin’s eight portfolio companies have some 4,000 employees across two dozen countries.

“The international footprint of Bruin is unique,” Pyne said. “And we’re in the growth capital sector of private equity. The size of companies we’re investing in, we open up markets for them, which is really valuable.”

Pyne added that Bruin pursues “bilateral” opportunities where the firm can craft bespoke opportunities without competition, noting Bruin has “never competed with the same company twice on a deal.”

The Chernin Group’s Greg Bettinelli likewise highlighted how a track record of hunting for unique investments can set funds apart. TCG, which is still investing out of its $1.3 billion third fund, has homed in on a subset of categories, including international fandom, storytelling and youth sports.

“Most, if not all, of our deals in and around sports have been ‘proprietary,’” Bettinelli said. “We developed the thesis, we built the relationships, we went and structured or put together the investments versus those investments being brought to us.”

Differentiation remains important even for established funds putting a new emphasis on sports. One example is Cordillera Investment Partners, the $1.8 billion private equity firm with a focus on niche, non-correlated assets that recently acquired stakes in the Professional Triathletes Organisation and Denver NWSL.

Co-founder and co-managing partner Ashley Marks said Cordillera is eyeing further opportunities in emerging leagues, women’s sports and ancillary businesses, such as sports law firms.

“We are looking more for the nooks and crannies within sports, and really being diligent on … finding areas that are pre-institutional and not overly dependent on the media aspect of things,” Marks said.

Chris Smith can be reached at crsmith@sportsbusinessjournal.com.