Asia’s wealthy investors shift from sponsorships to sports stakes as dealmaking hits record $3.69 billion 

SINGAPORE/MUMBAI: Sports-related mergers and acquisitions in the Asia-Pacific region reached a record $3.69 billion in the year to July 13 as wealthy families and institutional investors increased direct investments in teams, leagues and related businesses.

The figure was more than 12 times the level recorded a year earlier and the highest in LSEG data going back to 1980. Global sports M&A remained broadly unchanged at $8.34 billion.

Bankers said Asian investors were increasingly moving beyond sponsorships and charity-linked events to acquire minority stakes in franchises, leagues and sports technology companies. Full team takeovers remain less common because of high valuations and ownership restrictions.

Potential transactions include a minority stake in an Indian Premier League team and investments in baseball-linked businesses in Japan and South Korea.

Jordan Solomon, managing director at KKR Solutions in New York, said Asia had become both a major sports market and an expanding source of capital, supported by strong followings for the National Basketball Association, European football and Formula One.

The investment case has strengthened as audiences grow, broadcasters compete for premium rights and digital platforms increase access across large Asian markets.

Early audience data from the 2026 FIFA World Cup showed the tournament reached 205 million unique viewers on CCTV channels in China after 41 matches. Japan’s victory over Tunisia drew 39 million viewers on Nippon TV, according to FIFA.

Kiat Lim, a Singapore-based businessman who controls Valencia CF and has previously held stakes in McLaren Automotive and Salford City FC, said larger audiences were pushing up the value of broadcast rights and, in turn, team valuations.

In India, the Goenka family is considering selling a 5% to 10% stake in Lucknow Super Giants at a valuation of between $1.8 billion and $2 billion, according to people familiar with the matter.

The family, which owns the IPL team outright, has received interest from overseas investors but has not decided whether to proceed. A representative did not respond to a request for comment.

The talks follow two major IPL transactions this year. In March, United Spirits agreed to sell Royal Challengers Bengaluru for $1.8 billion to a group including billionaire David Blitzer’s family office Bolt Ventures and Blackstone Group.

In May, a consortium led by industrialists Lakshmi Mittal and Adar Poonawalla agreed to acquire a 93% stake in Rajasthan Royals at a valuation of $1.65 billion.

Sophia Park Mullen, president of EnTrust Global, said sports investment in Asia was developing from trophy purchases by individual billionaires into a more strategic institutional asset class.

John Hutcheson, Citigroup’s global head of sports advisory investment banking, said investors increasingly viewed sports as resilient, relatively insulated from artificial intelligence disruption and capable of producing returns less closely tied to broader financial markets.

He said Citigroup had received more inquiries from institutional investors in Asia seeking exposure to sports assets, a trend that was not evident a year earlier.

However, investors warned that risks varied across sports assets. Mark Affolter, co-head of sports, media and entertainment at Ares Management, said newer leagues and sports-related businesses carried greater uncertainty because the likely winners were less clear.

Singapore state investor Temasek continues to treat sports as an emerging investment theme rather than a core strategy, despite its investment in Fanatics and exposure through private equity partners.

Nagi Hamiyeh, president of Temasek Global Investments and head of Europe, the Middle East and Africa, said sports could develop into an asset class with returns less correlated to traditional markets.