Two consequential deals took place this summer that offered a rare source of diversification in today’s AI-saturated environment. Both took place in the sports world and underscored a major shift hiding in plain sight: Sports franchises are no longer considered vanity purchases, but alternative investments that beat the market.
In August, a group led by Bob Iger and Josh Kushner bought a controlling stake in the Los Angeles Lakers at a $12.5 billion valuation — the highest price ever paid for a sports franchise, up from $10 billion just two years earlier. In September, Stan Kroenke — who also owns the Los Angeles Rams and Arsenal in London — announced he’d buy the Los Angeles Angels for $4 billion, a new record for the MLB.
Since 2019, the average value of NFL, NBA, and NHL franchises has increased faster than the S&P 500. Wealthy investors have caught on, and, according to a survey of billionaire family offices by JPMorgan Private Bank, sports have overtaken art as the top “trophy” investment.
