UK sports industry outlook: growth, investment and challenges

As well as being home to a thriving media industry, the UK is a global hub for sport. In addition to the survey shaping our Media Industry Outlook report, we surveyed 50 sports organisations, including football clubs and motorsport teams, to shine a light on the opportunities and challenges facing this growing industry. 

Growing optimism among UK sports leaders

When asked about the outlook for their business over the next 12 months and beyond, the majority of sports industry leaders reported feeling optimistic. While short-term confidence is dampened by ongoing economic uncertainty, optimism strengthens over the longer term. Notably, although fewer respondents described themselves as “very optimistic”, 80% still expressed a positive outlook, and pessimistic responses declined significantly. Despite a sense of caution and trepidation, there is a clear belief that as conditions stabilise, confidence will continue to grow. 

High demand for investment

Out of the 50 respondents, only one reported not receiving any approaches or enquiries relating to investment or acquisition. This highlights the level of interest in the UK sports industry and could be contributing to the overall optimism among industry leaders. Many investors see untapped potential in sport, believing it has yet to be fully capitalised on and that there is scope to innovate and modernise revenue streams. Traditional owners might have overlooked areas where technology can reshape the landscape, from broadcasting and media rights to areas like fan engagement. This wave of interest reflects a broader belief that sport is poised for significant growth.

Preparing for transactions: acquisitions and exits

Over 50% of respondents said they were considering a transaction within the next two years, split relatively evenly between those looking to expand via acquisition and those looking at a potential exit. For those considering an exit within the next two years, preparation is vital in securing value through the disposal process, both in terms of maximising commercial appeal but also being ready for what can be a demanding process. 

Interestingly, the majority of respondents identified processing information and preparing quality management information as being one of the biggest challenges faced by finance functions. While not a unique issue to sport, investing time and resources in these areas early will enable businesses to make better strategic decisions and identify potential transaction challenges ahead of a future process.

In line with this trend, our Media Industry Outlook report highlights an industry-wide focus on reducing debt, and the same trend is clear in sport. In fact, only 14% of sports businesses reported having more debt than six months ago, while 72% said their debt levels had decreased. As investor interest in sport continues to grow, reducing debt and borrowing puts organisations in a stronger position—both for attracting new investment and becoming more appealing acquisition targets. 

Key threats to growth: investment, regulation and digital technology

Investor interest in sports businesses is nothing new, but our latest survey reveals a notable uptick in the number of organisations actively exploring transactions—whether through disposals, refinancing or international expansion. With financial sustainability becoming a central theme across the sporting landscape—particularly in football—it’s no surprise that clubs are seeking strategic investment to fuel growth and broaden their global reach.

What stands out, however, is the evolving profile of investor interest. Private equity (PE) is playing a more prominent role, while interest from the Americas appears lower than expected. This is despite recent high-profile US investments in clubs like Everton, Reading and Glasgow Rangers. Whether this signals a saturation point in US ownership of UK sports assets, or a more selective, strategic approach from American investors, remains to be seen.

When asked about the biggest threats to opportunities over the next 12 months, sports/talent agents took the top spot (36%), closely followed by increased government regulation (34%) and PE investment (34%). 

These findings are not surprising, especially in relation to football. FIFA has already taken steps to limit agent powers and fees, while the Football Governance Bill is currently progressing through the House of Commons.

While FIFA’s proposals were defeated in numerous international courts for being anti-competitive, it is clear that the Independent Football Regulator that will be set up by the government will, at the very least, lead to additional scrutiny and regulation on club acquisitions and investments.

Given that clubs are already subject to numerous regulatory frameworks (put in place by the Premier League, the EFL, UEFA and FIFA), it is no wonder that additional regulation is being seen as a threat to growth.

PE investment is increasing across a broad range of sports, changing the landscape considerably when compared to more traditional ownership models. However, our survey showed that individual investors (51%) took the top spot, followed by family offices (49%), PE firms (41%) and consortia (39%). Interestingly, family offices, many of which have more capital available than PE firms at present, are showing strong interest in sport. For them, sport often represents more than just a financial opportunity; it's seen as a “trophy” or emotional asset, carrying prestige and personal value in a way that differs from the more commercially driven approach of PE investors. 

Our latest survey shows that threats to growth are wide-ranging, with agents, regulation and PE investment ranking as the top three concerns. With FIFA’s agent rules facing repeated legal challenges and the UK’s Independent Football Regulator on the horizon, these issues aren’t likely to fade anytime soon.

What is interesting, however, is that revenues from digital technology and AI are also seen as potential threats. As such, those who focus on utilising and exploiting technology could be very well placed to see these threats turn into opportunities in the future.

Majority of sports businesses able to secure funding 

We found that 82% of sports businesses had managed to access the funds they needed, however, 36% of those said it was challenging. A further 12% were unable to access funds in the UK but had more luck securing investment overseas, with 6% not being able to get any funding at all.  

Among those that did raise capital, acquisitions emerged as the top investment priority (50%), a sharp contrast to our broader media sample, where this ranked much lower. Research and development followed closely at 46%, with international expansion next at 42%. 

Unsurprisingly, Europe was the top answer for regions for expansion at 62%, followed by Middle East and Africa (33%) and North America (also 33%).

With increasing international regulatory focus on multi-jurisdictional ownership, investors need to carefully consider the assets they are investing in and the potential requirement to restructure ownership in the future to meet regulatory requirements.

While it’s common to invest close to home, sport operates in a uniquely competitive and high-profile space. We’ve seen cases where investors had to restructure quickly to comply with integrity-focused regulations. That’s why getting the structure right from day one is essential, balancing flexibility with long-term strategic rationale, and accepting that the regulatory landscape may change in ways that affect future returns.