Global sports investors view technology as best short-term bet
Over the next 3 to 5 years, technology service providers will represent the best investment for global sports investors.
In the new Global Sports Survey conducted by Altman Solon, 63% of the more than 250 sports executives surveyed see technology solutions providers as the most attractive investment opportunity, aligning with digital transformation tailwinds of the sports industry. Sports clubs and franchises came in at 41%.
David Dellea, Partner at Altman Solon, said, “Premier sports franchises will never lose their attractiveness, given the power and longevity of their IP. Yet, private equity and other investors are turning to new technologies providers, particularly those that are revolutionising media workflows and fan experiences.
“To boost returns, sports investors can build a spectrum of strategic assets and capabilities across their portfolios.”
Altman Solon also predicted that 16 out of 22 segments in sports media production, transport, and distribution are expected to grow.
Based on recent deals, major US franchises can have enterprise value more than 10 times of revenue, which is expected to continue growing. In football, the value of major European clubs can be expected to grow by five times, signalling significant growth potential, especially considering supply constraints, said Altman Solon.
