Are Sports Investors Being Blindsided?
In our 2025 Sports Leadership Benchmark, 39% of UK sports rights-holders said they expect significant third-party investment in the next 12 months. A further 28% were unsure, but open to the possibility.
On the surface, that’s encouraging. Even in today’s economic climate, sport continues to be seen as a high-growth sector.
But dig into where that money is set to go, and the warning signs begin to show.
That last figure should raise eyebrows.
At a C-suite lunch we hosted earlier this year, one leader made a sharp observation: "Sport is very good at treating capital investment as income... and not understanding that they are different things."
It came during a discussion about whether rights-holders are channelling investment into areas that actually drive long-term growth – which is, after all, what most investors are looking for.
While clearing debt may offer short-term relief, using capital to patch over gaps is not a growth strategy. It does little to increase future revenue or build resilience.
We recently shared these insights with a prominent sports investor, who told us: “If I hear the money’s only being used to buy players – that’s a red flag.”
Talent is, of course, central to the industry. But over-investment in player acquisition, without matching focus on tech, infrastructure, and fan experience, is short-sighted. It risks fuelling the very inflation issues the sector is trying to contain.
The full 2025 Sports Leadership Benchmark will be released later this summer.
But if you’re an investor reading this - are you confident the money going in is building the sport of the future? Or just covering the cracks?
Digital strategy for Roblox, YouTube, TikTok | Engagement and monetisation for Sports & Entertainment | Podcast host and Speaker | Exec Producer | ex BBC
2moThis is worrying, I subscribe to the argument that in downturns marketing and innovation should be prioritised because that’s when consumer behaviour shifts. It’s precisely the time to find new solutions, Airbnb and Uber both launched during the global financial crisis of 2008 and took advantage of it.