The Los Angeles Lakers are reportedly being sold for $10 billion, the highest price ever paid for a sports franchise. That’s a monumental leap from the $67.5 million Jerry Buss paid in 1979, representing a 148× multiple and an estimated ~11% annual internal rate of return (Aspen Funds). It’s a clear example of why sports franchises are seen as valuable assets, not only for their financial returns, but for the cultural significance and long-term legacy they carry.
Why Family Offices Are Getting in the Game
For family offices, sports franchises offer a rare mix of capital appreciation, cultural influence, and multi-generational continuity. Compared to traditional private equity or real estate, franchises provide access to inflation-resistant revenue streams like media rights, ticketing, and licensing and have historically outperformed public markets in asset growth. But beyond returns, ownership is personal. A team becomes part of a family’s brand and civic presence, often serving as a platform for philanthropy, public engagement, and succession training.
As valuations rise and the number of franchises remains fixed, ownership is now seen as both an investment advantage and a lasting legacy move.
Spotlight Trends: Women’s Leagues, Global Capital, and Syndication
The playbook is evolving. One major trend is the surge in women’s sports, led by teams like Angel City FC, backed by Alexis Ohanian, Serena Williams, and Natalie Portman. In just a few years, the team reached a valuation of over $250 million. Viewership for the 2024 NWSL Championship was up 73 percent year-over-year, according to Sportico. With institutional capital from investors like Disney CEO Bob Iger now in the mix, the women’s sports market is rapidly gaining legitimacy and scale.
At the same time, sovereign wealth funds and global capital are reshaping ownership dynamics. Saudi Arabia’s Public Investment Fund (PIF) has taken stakes in Newcastle United, launched LIV Golf, and is exploring assets in Formula 1 and World Athletics. These large, state-backed moves are driving up valuations and prompting family offices to act quickly or risk being sidelined.
How Family Offices Finance Billion-Dollar Deals
Most families don’t go it alone. Instead, they use layered capital strategies to preserve flexibility and scale ownership:
- Equity Syndication: Co-investing with other families, funds, or celebrities.
Example: Angel City FC’s founding investor group. - Minority Stake Sales: Selling non-controlling shares to unlock liquidity.
Example: Dyal HomeCourt’s investments across multiple NBA teams. - Debt Financing: Using low-interest loans secured by media and stadium revenues.
NFL now allows up to $1.1 billion in debt per team. - Real Estate Structures: Creating SPVs or REITs for stadium-adjacent developments.
Example: Sixth Street’s investment in Oracle Park upgrades. - Earn-Outs & Installments: Spreading payments over time, especially in intra-family sales.
This mix allows families to share risk, bring in strategic partners, and maintain long-term control.
What Happens After the Buy
Buying the team is just the beginning. The most successful families treat franchises like operating companies with professional management, long-term planning, and clear succession strategies.
Professionalized Leadership
Ownership often starts with upgrading the front office. The Walton-Penner group brought in veteran executives, including ex-CEOs and NFL insiders, to lead the Denver Broncos setting a new benchmark for strategic oversight.
Brand & Fan Engagement
Modern franchises are now lifestyle brands. Angel City FC has built its following through equity-driven marketing and digital storytelling that resonates with Gen Z, blending cultural relevance with commercial success.
Stadium & Real Estate Synergies
Stadiums are often just the anchor. Stan Kroenke’s SoFi Stadium is part of a multibillion-dollar redevelopment in Inglewood, California, combining sports, entertainment, retail, and residential real estate into one urban engine.
Media Monetization
Sports remain one of the last bastions of appointment viewing. The YES Network, launched by the Steinbrenner family to support the Yankees, has become one of the most valuable sports media properties in the U.S.
Succession Management
Franchises are often used to engage next-gen family members in governance and leadership. The Buss family remains a prime example, with Jeanie Buss at the helm and multiple siblings involved in Lakers operations.
More Than Just a Game
The $10 billion Lakers sale isn’t just a headline it’s a signal that sports franchises have graduated from passion projects to strategic assets. For family offices, owning a team is about more than IRR. It’s about influence, permanence, and identity. As women’s sports surge, sovereign funds expand their reach, and valuations keep climbing, family offices aren’t just watching from the sidelines they’re shaping the future of sports from the owner’s box.
