Goldman Sachs (NYSE:GS) is expanding its financial services to adapt to the growing interest in sports-related investments. The banking giant has launched a new division, Sports Franchise in Investment Banking, to offer its wealthy clients avenues to invest in professional sports teams and other entities within the sports and entertainment industry. This initiative is part of a wider industry effort to keep pace with the increasing value of sports franchises.
The newly formed division will be led by Goldman Sachs executives Greg Carey and Dave Dase. It aims to focus on the global sports ecosystem, encompassing all major sports, federations, leagues, franchises, and clubs, as well as businesses tied to sports media, entertainment, and technology. This move combines Goldman Sachs' prior engagements in sports mergers and acquisitions with its sports financing operations.
The specific teams or assets immediately available for Goldman Sachs clients to invest in have not been revealed yet. However, the banking powerhouse has been part of several significant transactions in the past. These include the sales of Premier League's Chelsea, Formula 1, and a minority stake in NFL's Tennessee Titans.
This new venture is expected to provide investors with a more direct path to tap into the rapidly growing interest in sports-related investments. In recent times, franchise values have surged, leading to the consideration of diverse alternative strategies for team ownership and investment. The NFL is reassessing its traditional ownership rules while several other professional leagues have allowed private equity and sovereign wealth funds into ownership.
International ownership in sports franchises has also seen an upswing. Saudi Arabia's Public Investment Fund (PIF) has made substantial investments in U.S. sports and beyond. Earlier this year, the Qatar Investment Authority entered into an investment partnership with Monumental Sports, the parent company of Washington Capitals, Wizards, and Mystics.
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