Ares Invests in Sports Media Venture

Ares Management is expanding its focus on the sports, media and entertainment ecosystem, leveraging more than two decades of experience and a portfolio of over 100 prior investments.

New Investment Platform Targets a $3 Trillion Market

In 2020, the company launched a dedicated platform that provides flexible capital through debt and equity to teams, leagues and adjacent businesses. The strategy is designed to address the “evolving and complex needs” of the sector, according to the filing. Ares says the broader sports ecosystem—including stadium operators, merchandise, logistics, streaming services, music royalties and data analytics—represents a US$3 trillion investable market.

Recent deals illustrate the scale of the opportunity. The National Rugby League in Australia secured a seven‑year, $5.3 billion media rights agreement, the largest commercial contract for any Australian sport. Globally, the 2026 FIFA World Cup generated about $15 billion in media rights revenue. These numbers highlight the rising value of live, unscripted sports content, a point emphasized by John Knox, partner and head of Australia/New Zealand at the firm.

“Years ago, everyone tended to watch the same thing, but the fragmentation of media means fewer people are consuming content the same way,” Knox said. “What hasn’t changed is the value of live unscripted sports content to individuals.” He added that live sport is likely less vulnerable to AI‑driven disruption than other media assets.

The approach differs from traditional sports‑team investments by spanning the entire value chain. Ares has placed capital in English Premier League clubs, Australian rugby union, cricket and other leagues, while also targeting ancillary areas such as apparel, data analytics and music catalogues. Knox noted that diversification extends across sectors, geographies and the capital structure, ranging from senior debt to hybrid instruments and equity.

Capital Structure Flexibility Aims to Mitigate Risks

Investors are drawn to the sector’s “attractive growth potential” and historically low correlation with traditional equities and bonds. The company argues that long‑dated media rights, scarcity premiums and strong consumer loyalty give sports‑media assets a “true alternative” profile.

In Europe, relegation risk can affect team valuations. Knox explained that investing in different layers of the capital stack may reduce downside exposure, a tactic that could appeal to advisers seeking portfolio diversification.

While excitement around sports‑media investments is palpable, the firm cautions that hype alone does not determine investability. Infrastructure‑like cashflows generated by these assets provide a solid foundation for long‑term returns.

Competition for deals could intensify, possibly compressing yields. However, the sector’s unique blend of tangible assets and recurring revenue streams may still offer a buffer against market volatility.

Clients have responded positively, finding the sector “exciting”.