2023 has not been a good year for mergers and acquisitions. So much so that some analysts doubt that they will reach US$3 trillion (millions of millions) in 2023, a figure that was normal to reach in the past decade. Rising interest rates, geopolitical conflicts and increased risk aversion on the part of investors have combined to cause this bad patch. But there is one business that is going against the tide and where buyout and merger activity is going from strength to strength: the sports business.

According to Bloomberg, so far this year, the dance of millions in this sector has been intense, including the merger of the two major wrestling and mixed martial arts leagues (for US$21 billion), the sale of the NBA basketball team Charlotte Hornets (US$3 billion) and the proposed merger of the PGA and LIV golf leagues, among others.golf leagues, among others.

Why so much interest? According to Bloomberg, the sports business has shown a remarkable resilience that has been maintained after the pandemic, when quarantines catapulted the consumption of hours of entertainment on television or streaming services. Moreover, this is a sector in which the number of leagues and franchises is limited, in the face of a growing universe of investors interested in the business. The numbers speak for themselves: the combined value of the 50 largest sports franchises on the Forbes list jumped 90% between 2018 and 2023, reaching US$256 billion.

Among the main factors behind this boom is the value of broadcasting and streaming rights, which continues to grow. It has reached US$55 billion by 2023 and could reach US$65 billion by 2025.

Investors also see an opportunity to gain value through economies of scale and the possibility of finding more valuable players by merging leagues. In fact, an estimated 180 clubs, encompassing some 6,500 players, are part of groups that own several teams.

Sports fever is here to stay. In September, Goldman Sachs created a unit focused on sports franchises within its investment banking arm.