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This story was originally featured in World Finance.
Private equity investment in sports has surged over the past decade as a result of the industry’s global appeal and competitive growth potential. 777 Partners, a US firm, attempted to capitalize on this trend by acquiring stakes in multiple football clubs worldwide before collapsing in October 2023—highlighting the risks of rapid expansion without sufficient market understanding.
In this recent article by World Finance, several experts weigh in on how, despite failures like 777 Partners, private equity continues to remain attracted to sports. While critics warn of inflated valuations and the risk of insolvency, particularly in European football, investors see opportunities to streamline costs and enhance commercialization. However, concerns persist that private equity’s short-term focus and cost-cutting measures may undermine the long-term sustainability and cultural integrity of sports organizations.
When asked, Roy Lockhart offered his thoughts on the impact of allowing PE ownership into the NFL and the implications this may hold for the leagues image moving forward:
"NFL owners still want to project the image of long-standing family ownership as the typical model, and where that has been the case, winning has always been a priority in addition to financial success. By including these restrictions as they open up franchises to private equity investment, they are able to maintain this illusion while preparing for a future where franchises are treated more as investment vehicles than passion projects.”
-Roy Lockhart | Partner at Grant Thornton Stax
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