Weekend Sports Roundup: Leading Sports Stories in the Private Equity Sphere
Justin Ishbia, a renowned billionaire investor and part-owner of the NBA's Phoenix Suns, is set to make a significant move in the world of baseball. Ishbia has agreed to acquire a controlling stake in Major League Baseball's Chicago White Sox, reportedly for approximately $1.8 billion. This development, expected to be finalised around mid-2025, positions Ishbia to take over as the principal owner, replacing long-time owner Jerry Reinsdorf [2][3].
Meanwhile, in the world of football and netball, Powerleague, a UK-based sports venue operator, is expanding its horizons. The company, which manages over 250 third-party venues, has recently announced plans to add padel tennis to nearly half of its sites. This move is expected to accelerate Powerleague's growth and diversification into new sports [5].
Powerleague, founded in Paisley, currently operates 43 clubs across the UK and has nine million annual customers. The company will retain its existing management team post-transaction, following Broadsword Investment Management's acquisition of a majority stake in Powerleague, the UK's largest five-a-side football operator [4].
In a separate development, the sports sector is witnessing a shift as EQT, a Swedish private equity firm, is reportedly evaluating an offer for WRC Promoter, the commercial rights holder of the World Rally Championship (WRC). Partners Group has agreed to a deal for EQT, with a bid worth approximately £500 million ($675 million) [1]. WRC Promoter, currently owned by Red Bull and German investment group KW25, has appointed JPMorgan Chase to explore a sale [1].
The sports industry is also seeing a focus on university sports, with the launch of the Collegiate Investment Initiative, a $500 million fund. This fund will provide long-term capital and strategic support to universities navigating the transition to a student-athlete revenue-sharing model. The initiative follows a recent $2.8 billion settlement clearing the way for annual athlete compensation of up to $20.5 million per school [6].
In addition, Velocity Capital Management, Elevate, and the Texas Permanent School Fund Corporation have launched a $500 million fund targeting commercial and infrastructure investments across US college sports [7].
Under a separate agreement, Ishbia has bought out a number of minority investors and will begin injecting capital into the Chicago White Sox this year and next to help reduce debt and support operations. Although controlling ownership could be transferred as early as 2029, Ishbia will have the right to acquire Jerry Reinsdorf's majority stake if no sale is finalised by the end of the 2034 season [3].
These developments reflect an exciting time for the sports industry, with investors and companies focusing on expanding and diversifying their portfolios, while also supporting the growth and development of university and professional sports teams.
- Justin Ishbia, a renowned billionaire investor, is set to invest in Major League Baseball's Chicago White Sox, acquiring a controlling stake for approximately $1.8 billion.
- Ishbia's acquisition is expected to be finalized around mid-2025, positioning him as the principal owner, replacing long-time owner Jerry Reinsdorf.
- Powerleague, a UK-based sports venue operator, plans to add padel tennis to nearly half of its sites, accelerating growth and diversification into new sports.
- Broadsword Investment Management has acquired a majority stake in Powerleague, the UK's largest five-a-side football operator.
- EQT, a Swedish private equity firm, is reportedly evaluating an offer for WRC Promoter, the commercial rights holder of the World Rally Championship.
- Partners Group has agreed to a deal for EQT, with a bid worth approximately £500 million ($675 million) for WRC Promoter.
- The sports industry is launching funds to focus on university sports, with the Collegiate Investment Initiative, a $500 million fund, providing long-term capital and strategic support.
- Velocity Capital Management, Elevate, and the Texas Permanent School Fund Corporation have launched a $500 million fund targeting commercial and infrastructure investments across US college sports.
- Ishbia has bought out minority investors in the Chicago White Sox and will inject capital to reduce debt and support operations, with the possibility of acquiring Jerry Reinsdorf's majority stake before the end of the 2034 season.
