Digital transformation drives interest in sports media tech

By NewscastStudio January 28, 2025

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A growing interest in digital transformation has shifted the focus of global sports investors toward technology solutions providers, which are now considered the most attractive short-term investment opportunity in the industry.

According to Altman Solon’s “Global Sports Survey,” 62% of the 250 sports executives surveyed identified technology solutions providers as the top investment priority for the next three to five years, surpassing traditional investments in sports clubs and franchises (41%).

This preference aligns with trends driving the modernization of sports media, particularly innovations impacting production workflows, fan engagement and digital revenue streams.

“Premier sports franchises will never lose their attractiveness, given the power and longevity of their IP,” said David Dellea, a partner at Altman Solon. “Yet, private equity and other investors are turning to new technologies providers, particularly those that are revolutionizing media workflows and fan experiences.”

Altman Solon’s report highlighted notable growth areas within the sports industry:

  • Sixteen of 22 segments in sports media production, transport and distribution are expected to experience expansion.
  • Major U.S. sports franchises currently hold enterprise values exceeding 10 times their revenue, while European football clubs are valued at multiples of around five, signaling significant growth potential.
  • The fragmented nature of the sports media technology value chain presents opportunities for consolidation and value creation, as seen in deals like TGI Sport’s acquisition of Supponor.

The report emphasizes that investments in the broader sports ecosystem, beyond intellectual property ownership, are increasingly being viewed as key to accelerating professionalization and driving returns.

With an influx of private equity and sovereign wealth funds, the investor landscape in sports has diversified. These investors are taking a portfolio approach, combining core assets like teams and leagues with enabling technologies and adjacent segments. The goal is to drive both value creation and operational efficiencies through digital transformation.

One prominent example of this approach is Formula 1, where strategic investments have resulted in annual revenue growth of around 10%. Similar patterns have emerged with the City Football Group’s diversified investments.

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“The sports media technology value chain — ranging from production and transport to distribution — offers compelling opportunities,” the report noted. “Digital disruption continues to reshape media rights owners and broadcasters, creating long-term value for forward-looking investors.”

As the competition for assets intensifies, the report concludes, successful investors will differentiate themselves through expertise, access to deal flow and the ability to leverage synergies across their portfolios.

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