Arctos has grown its sports-related assets under management to $11.3bn, strengthening its position as the largest private equity investor in North American sports franchises.

The firm continues to see resilient valuations and long-term upside in the sector, despite new US tariffs fuelling broader market volatility.

In a recent investor note, Arctos said it expects minimal exposure to tariff shocks across its portfolio. “The underlying business model of sports benefits from exceptional stability due to long-term, contracted revenues across media rights, sponsorship and ticketing,” the firm noted, citing minimal reliance on import-heavy cost structures and domestic-focused demand.

Arctos’ confidence is backed by historical data: its proprietary RAFSI index, built in partnership with the University of Michigan, shows that team values have grown through past downturns, including the dotcom crash, the mortgage crisis, and the pandemic.

The firm’s sports-focused funds have seen consistent annual growth of 6% to 7.5% over the past two years, based on regulatory filings. Recent milestones include its latest minority investment in the NFL’s Buffalo Bills. Arctos now holds positions in at least 15 franchises across the MLB, NBA, NFL, and NHL.

While public markets have seen sports stocks decline by 7.6% this year, Arctos attributes this to technical factors such as ETF redemptions, rather than a shift in underlying asset values. “With long-term contracts, domestic supply chains, and a uniquely loyal customer base, the business of sport continues to offer something that is in short supply elsewhere: predictability, resiliency and a lack of correlation,” the firm stated.

The $6.1bn sale of the Boston Celtics further underscores investor appetite and valuation momentum in the asset class.

Source: Sportico