Ashok Namboodiri
Recent announcements in the US indicate an increased appetitite for fund houses to invest and participate in the growth of sports businesses. Ares reportedly is preparing to launch a second Sports, Media & Entertainment Fund after its inaugural one in 2020 while Apollo General Management is considering a permanent capital vehicle dedicated to sports finance. This structure would allow for longer-term strategic investment, primarily through lending to professional sports teams and leagues with the potential to take equity.
Which raises the question of what exists in India today for HNIs to “buy a slice of a team”. Consider this… you could take economic exposure in listed parents of frachises – United Spirits for RCB for example – or a pre IPO/unlisted shares of franchise SPVs – best known example being Chennai Super Kings Cricket Limited trading on unlisted market places. These are illiquid and riskier, but HNIs do buy them.
Private equity like RedBird Capital bought 15% of Rajasthan Royals; these are negotiated, chunky checks – not fractional HNI products.The bottom line is that
no one has genuinely “unlocked” democratised, fractional sports-team ownership for Indian HNIs yet.
This is a huge opportunty because India is sitting on the cusp of what Apollo and Ares are doing globally, but the models haven’t been unlocked locally yet. Macro tailwinds look good in terms of explosive sports economy growth: India’s sports industry is already ~₹14–16,000 crore ($1.7–2.0B) in annual value, growing ~10–12% CAGR. Cricket dominates, but football, kabaddi, kho-kho, and women’s cricket are expanding audience share. India is openly positioning for the 2036 Olympics bid, and large events like the 2025 Champions Trophy and 2026 Women’s World Cup will act as catalysts. India has ~13.2 lakh HNIs (wealth >$1M) and is adding new ones at 12–13% CAGR. For context, these are the natural buyers of sports slices.
IPL teams and ISL franchises need liquidity for infra, academies, or media bets. Structured debt could be replicated here. SEBI already allows Category II AIFs; a dedicated sports-focused fund could pool HNI money to buy minority stakes in franchises, leagues, or sports tech startups. If Ares can float a retail-accessible sports & media fund in the US, India’s wealthy retail (HNIs, family offices) is a prime market for a similar vehicle.
Franchise valuations are booming with average IPL franchise valuation is $1.15B (Forbes 2023). CAGR ~24% since inception. That curve is irresistible to HNIs if access is created. Indian HNIs are over-exposed to real estate. Sports as an asset class offers emotional engagement plus growth, making it the next “passion play” asset after art and collectibles. SEBI pushing fractional REITs and InvITs, a similar model for fractional sports ownership trusts could be just a few years away.
The Indian market is ripe. Apollo and Ares are building playbooks in Europe/US with debt, equity, and retail-accessible sports funds. India could replicate this via Sports AIFs or fractional sports ownership vehicles targeted at HNIs. Given IPL valuations, Olympic ambitions, and HNI growth, the potential is huge but waiting for regulatory plus league innovation to unlock.
Why this Works in India is because there is huge HNI appetite – there is no passion plus prestige asset class, beyond real estate and art. The Valuation curve looks attractive – IPL CAGR ~24% since inception; WPL already at $500M-plus valuation just two seasons in. On the regulatory front, SEBI has enabled AIFs, InvITs, and REITs – sports could be next frontier. This is an opportuntiy waiting to be exploited and the pitch could well be “Own a slice of India’s sporting future … from the IPL to the Olympics bid …. through a diversified sports capital platform.”
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