Sports

How ultra-rich families invest in sports, from major leagues to social clubs

By Hayley Cuccinello

Copyright cnbc

How ultra-rich families invest in sports, from major leagues to social clubs

A version of this article first appeared in CNBC’s Inside Wealth newsletter with Robert Frank, a weekly guide to the high-net-worth investor and consumer. Sign up to receive future editions, straight to your inbox.

While ultra-wealthy families and their investment firms are investing in fewer startups, they are still clamoring for a piece of the action when it comes to sports.

According to a new survey by Goldman Sachs, 25% of family offices have invested in sports or related assets like ticketing or arenas, and another quarter are interested in doing so.

Last week, Julia Koch, the widow of billionaire David Koch, and her family agreed to buy a minority stake in the NFL’s New York Giants, according to Bloomberg. In June, Guggenheim Partners CEO and billionaire Mark Walter reached a deal to buy a majority stake in the NBA’s Los Angeles Lakers at a valuation of $10 billion. And a trio of Bay Area families, including venture capitalist Vinod Khosla’s, bought a 6% stake in the San Francisco 49ers in May.

However, while women’s leagues and emerging sports like pickleball have garnered more buzz, investor appetite hasn’t caught up, according to the bank’s survey. Only 19% of 245 family offices said they had invested in or are interested in investing in women’s established leagues, while 71% expressed interest in major men’s leagues. A smaller percentage (16%) indicated past investment or interest in women’s emerging leagues or men’s minor leagues.