Private Equity’s Continued Reign in Pro Sports — and Why the Game Is Changing

Chester Khangelani Mbekela
Oct 27, 2025
5 min read

Private equity has been quietly — and not so quietly — reshaping the ownership map of global sport. From strategic minority stakes to full club takeovers, the arc of institutional money across football (soccer), rugby and now basketball is re-drawing how clubs are funded, run and scaled. The result is greater commercial firepower for many teams, faster global expansion, and new tension about culture, identity and control.

Below I unpack the trend through concrete examples — City Football Group’s presence in Japan, Red Bull’s Asian move, the stalled Springboks deal, and fresh private-equity eyes on African basketball — and explain why some iconic clubs (say, the Dallas Cowboys) remain leery of handing any slice of their kingdom to PE.

City Football Group in Japan: globalization by minority stake

City Football Group (CFG) built its empire through a mix of full ownerships and minority, strategic deals. Its 2014 minority investment in Yokohama F. Marinos is a good case study: CFG took a roughly 20% stake, pairing technical expertise, global scouting pathways and marketing know-how with local majority owner Nissan. That arrangement let CFG spread its brand and operational model without bulldozing local identity — and it gave Yokohama access to global resources and ideas. Wikipedia+1

This “soft power” approach — buy a minority stake, supply expertise and synergies — is attractive for both sides: global groups expand their footprint; local clubs keep ties to community roots while benefitting commercially.

Red Bull’s acquisition of Omiya Ardija: full takeover, fast integration

Contrast CFG’s minority method with Red Bull’s more aggressive roll-out. In 2024 Red Bull completed a full acquisition of Omiya Ardija in Japan, the company’s first outright club buy within Asia, folding the team into its global network and operational model. That kind of takeover gives an investor freedom to rebrand, unify coaching methodologies and plug the club into player pathways across continents. Red Bull’s model has been wildly successful from a sporting and marketing standpoint — but it also sparks debate about corporate identity vs. local tradition. sportspro.com +1

Full ownership accelerates transformation, but the cultural cost can be real: fans often bristle when a century-old badge is shifted toward a corporate template.

The Springboks saga: when private equity meets politics and patriotism

Not every pitch from PE lands cleanly. In late 2024 and early 2025, a US-based group sought to buy a 20% stake in South African rugby’s commercial rights for roughly $75 million — a move designed to inject capital and commercial expertise into SA Rugby. The proposal ran headlong into union politics, national sentiment and governance concerns and was rejected by enough member unions to collapse the deal. The episode underscored that national teams and beloved brands are not just balance-sheet assets: they are political and cultural institutions, and local stakeholders will fiercely defend perceived national sovereignty. Reuters+1

That outcome sends a clear message: PE is welcome where commercial logic is clear and stakeholders are aligned — but when the asset is a national symbol, deals need deep local consent and deft diplomacy.

PE’s radar turns to African basketball

Where private equity goes next matters. Africa’s sports scene — particularly basketball — has caught institutional attention. The Basketball Africa League (BAL), NBA Africa partnerships and increasing infrastructure investment have created a narrative of market growth and scalable opportunity. Africa’s combination of youthful demographics, rising TV/streaming reach and under-monetized sports ecosystems makes basketball a natural candidate for structured capital investment, from infrastructure to club franchising. Firms already active in African markets are scouting ways to partner with leagues, franchise clubs, and build media/sponsorship ecosystems. Bloomberg+1

This is not just philanthropic interest: private investors see real upside in early entry to a market where media rights, merchandising and sponsorships can scale rapidly — especially if international partners bring know-how and distribution.

Why some clubs say “thanks, but no thanks” — the Dallas Cowboys example

Despite the PE rush, some teams remain resistant. The Dallas Cowboys — arguably sport’s most valuable franchise — have signalled little appetite to sell minority stakes to private equity. Owner Jerry Jones has publicly emphasized keeping control in family hands even as the NFL recently opened a path for approved PE firms to buy small passive stakes in teams. The Cowboys’ hesitancy reflects a few hard realities: family and legacy control, concerns about the influence of institutional investors on long-term decisions, and a belief that some franchise revenues (stadium real estate, brand partnerships) are best managed privately. Dallas News+1

Additionally, league governance and rules matter: the NFL has only recently allowed limited PE involvement and has strict guardrails (caps on stake size, approved fund lists, long holding periods). Owners fear the “financialization” of teams — decisions driven by short-term returns rather than sporting legacy or fan interests. The Washington Post+1

The upside — what PE brings to the table

Capital at scale. Stadium upgrades, training facilities, academy systems and digital platforms are expensive. PE supplies money fast.
Commercial discipline. Institutional investors bring playbooks for revenue diversification — sponsorship, data monetization, global merch channels.
Network effects. A multi-club investor can move players, coaches and commercial strategies between markets rapidly (CFG is the poster child).
Professionalization. Back-office areas (analytics, consumer marketing, ticketing) level up quickly with investment.

For many clubs, especially outside the global top tier, PE has been the difference between stagnation and exponential growth.

The downside — what fans and insiders worry about

Identity dilution. Corporate templates can erode local culture and history.
Short-termism. Some PE funds chase rapid returns and cost rationalization that can harm sporting investment (staff cuts, player trading).
Concentration risk. Too many clubs in one portfolio risks conflicts of interest and competitive distortion.
Public sentiment and politics. National teams, federations and governments may resist perceived foreign control (as seen with the Springboks). Reuters

What’s next?

Private equity is not a fad; it’s structural. Team valuations are enormous, media rights continue to expand, and new markets (Africa, Asia, the US mid-market) are hungry for capital and expertise. But the future won’t be one-sized. We’ll see:

More hybrid deals (minority stakes + strategic commercial partnerships).
Geographic targeting (PE moves into Africa, Asia and Latin America where upside is biggest). Bloomberg+1
Heightened governance — leagues will continue to write guardrails to protect sporting integrity and fan interests. The Washington Post

For fans who fear the soul of sport is being sold, the coming years will be a test: can private capital unlock growth while respecting culture? If investors and stewards of clubs strike the right balance — investing capital but preserving identity — the modern sporting landscape could enjoy the best of both worlds: global scale with local soul.

Final thought

Private equity’s cheque book will keep opening doors — but the deals that endure will be those that balance dollars with devotion: commercial strategy married to cultural sensitivity. When that happens, clubs win twice: on the scoreboard and in the hearts of their people.

Sources & further reading: City Football Group / Yokohama F. Marinos; Red Bull’s Omiya Ardija takeover; the collapsed Ackerley Sports Group/Springboks deal; recent reporting on PE interest in African basketball and league governance changes. The Washington Post+4Wikipedia+4sportspro.com+4

By: Zila Mbekela