The U.S. sports boom is a unique opportunity for European investors—without many of the old continent’s risks

As U.S. and Middle Eastern investors continue to pour money into European sports, it’s time for European capital to explore the lucrative opportunities in the booming U.S. sports industry.

Here is why investing across the Atlantic could be the game-changer European portfolios need.

The stability and predictability of U.S. sports franchises

In recent years, U.S. and Middle Eastern investors have been aggressively investing in European sports, capitalizing on the rich heritage and passionate fan bases of clubs across the continent. High-profile acquisitions, such as the takeover of Manchester City by the Abu Dhabi United Group and the purchase of Paris Saint-Germain by Qatar Sports Investments, exemplify this trend. American investments that stand out include Fenway Sports Group’s ownership of Liverpool F.C. and Clearlake Capital’s majority shareholding in Chelsea F.C.

In times of economic uncertainty, investors seek stability and predictability—qualities intrinsic to U.S. sports franchises. The NFL, NBA, MLB, NHL, and MLS are not just sports leagues—they are billion-dollar industries with longstanding histories and intensely loyal fanbases.

The relative scarcity of teams in major U.S. leagues creates a local monopoly effect, driving up valuations and ensuring a consistent demand for team-related products and experiences. This scarcity, combined with the emotional attachment fans have to their teams, ensures a steady revenue stream even during economic downturns. For instance, the NFL, which enjoys a unique antitrust exemption, has seen its team valuations skyrocket, with the Washington Commanders sold last year for a record $6.05 billion.

U.S. sports franchises benefit from multiple revenue streams, including ticket sales, broadcast rights, sponsorships, and merchandise. The NFL and NBA, in particular, have secured the world’s largest sports media deals, with the NFL generating over $12 billion a year in revenue through its exclusive broadcasting agreements. The NBA has expanded its global reach, with teams playing pre-season games in markets like Abu Dhabi, thus attracting international viewership and sponsorship.

U.S. leagues’ structural advantages

Investing in sports is not without its risks. The volatility in team performance, the potential for scandals, and…