Fogel & Potamianos LLP annually hosts its M&A and Alternative Investment Forecast. This year, We have an all-star group of panelists, including Cesar Bello, Partner with hedge fund Corbin Capital Partners, Jason Somerville, Partner with investment bank GW Hahnbeck, and Robert Dalie, Managing Director of wealth management firm The Summa Group of Oppenheimer & Co. Inc. Within alternative investments, sports has become a popular asset class for institutional investors. Here are some trends to watch for in 2025.

1. Team Valuations Continue to Rise. In March, the Boston Celtics announced the proposed sale of the franchise for a record $6.1 Billion, topping the previous record of $6.05 Billion paid for the Washington Commanders. As team valuations rise, league governing bodies continue to loosen the restrictions on institutional ownership (for example, NFL now allows for up to 10% passive, non-voting interests in total per team while MLB allows for up to 30% total institutional ownership with no more than 15% from any single institutional investor). These valuations also fan the flames of interest in emerging leagues outside the four majors as well, attracting the prospect of outsized returns.
   
   
2. LP participation will expand at all levels. Opportunities will continue to abound, whether to come alongside control sales for blue chip franchises such as the Boston Celtics, where there is reportedly slugs of interest available to LPs, or nascent leagues such as TGL golf (such as the reported $77 Million fee for a Dallas Franchise) or for real estate and other properties around sports. That said, Prospective LPs should come in with eyes wide open. F&P’s Minority Team Investment Checklist has a host of issues for LPs consider.
   
   
3. Dealflow will continue in streaming, fan engagement, real estate infrastructure, and technology. Rising media revenue deals and controlled players costs make sports team ownership attractive. To boot, there are ancillary revenue streams that a sports team provides. On the other side, teams are looking to maximize the value from ownership in teams, including surrounding real estate (which can include lucrative tax subsidies, fan engagement, and technology). That said, buyer beware, because emerging league ownership can be fraught with capital calls and a long runway prior to profitability or an exit.
   

Jerome Fogel is co-founder of Fogel & Potamianos LLP. A partner in the Corporate Practice Group and Chair of the Sports & Entertainment Group, he is known as an innovator and dealmaker in the legal community. He represents private companies in mergers and acquisitions, emerging venture funds from formation through deployment of capital, and sports superstars in their off-field transactions.

*This may be considered attorney advertising in some states.