With Pedro Félix da Costa, Founding Partner at APEX
Sports has long been viewed as a passion-driven ownership space. Historically dominated by individuals, families, and legacy owners, professional sports assets were often treated as trophy holdings rather than institutional investments.
That dynamic is changing. Institutional capital is increasingly flowing into sports franchises, leagues, media rights, and the broader ecosystem surrounding professional competition. Funds dedicated to sports investing are emerging, governance structures are evolving, and investors are beginning to evaluate sports assets alongside traditional private market opportunities.
To better understand this shift, we spoke with Pedro Félix da Costa, Founding Partner at APEX, a sports-focused investment firm working with professional athletes and institutional investors to deploy capital across the global sports landscape.
The Institutional Shift in Sports Investing
Sports is becoming increasingly attractive to institutional investors, driven by structural characteristics rarely found in other asset classes.
According to Félix da Costa, the underlying economics play a central role.
“The sports business model is exceptionally attractive to institutional investors for a fundamental reason: long-term contracted revenue paired with high consumer predictability. On top of this, it has unique characteristics, including high uncorrelation with macroeconomic cycles, and it has also become a strategic priority for countries, unlocking many forms of public investment.”
The professionalization of sports organizations has also played a role. Improved governance, stronger management teams, and more predictable revenue streams are making sports assets more aligned with institutional requirements.
But the timing is also important. Sports viewership has expanded significantly over the past three decades, driven by technological inflection points.
“The first major shift occurred in the early 1990s with the appearance of dedicated sports channels on television. The next wave came in the 2010s with smartphones, 4G infrastructure, and social media. This gave people on-demand access to sports content anywhere, anytime. These technological breakthroughs created the perfect opportunity for sports, and the industry seized it.”
Looking ahead, Félix da Costa sees another potential catalyst.
“The next anticipated jump in sports consumption is tied to the rise of AI, as productivity gains are expected to create more free time, coupled with a growing desire for in-person experiences rather than virtual ones. That positions live sports uniquely well.”
The Broader Sports Ecosystem
While team ownership often dominates headlines, the sports ecosystem is far broader. As institutional interest grows, capital is flowing into adjacent sectors.
“As professional sports emerge as an established asset class anchored by growing popularity, it creates a high tide that lifts all boats,” Félix da Costa explains.
APEX operates across multiple strategies, including a recently launched sports dedicated growth equity fund designed to back experienced operators, in the right sport, at the right time. APEX also invests in companies servicing the world of sports, through its Elite Performance Fund, launched in 2023. This fund includes more than 65 professional athletes as limited partners, alongside sports executives and institutional investors.
With a proven track record including investments in Alpine F1 Team, Venezia Football Club, TMRW Sports’ Golf League and the recently launched Pro Flag League together with the NFL. This is where the firm believes it can generate differentiated returns.
Another area of interest is recreational sports, which have benefited from cultural shifts toward healthier lifestyles.
“These can be excellent businesses. Examples include organized marathons, running clubs,multi-purpose sports centers, etc. Unlike professional sports, these use a pay-to-play model and generally have no media rights or significant sponsorship value.”
The Athlete-Led Investment Model
A defining feature of APEX is its athlete-led investment model. The firm works with over 100 athletes across 17 sports, leveraging their networks and domain expertise.
“Throughout their careers, athletes gather tools and information that are unavailable to the rest of the market, including networks across the sports landscape, insights, and brand power.”
This creates information advantages in sourcing and diligence.
“Our ability to combine this athlete-led model with our internal team creates information asymmetry. APEX has access to information that the rest of the market does not. This uniquely positions us to source off-market transactions and design value creation strategies.”
The firm engages athletes regularly, using structured sessions to identify trends and develop investment theses.
“Unlocking the full potential of the athlete model is complex. But when athletes are confident their engagement enhances outcomes, it becomes a powerful driver of returns.”
Governance and Structural Complexity
Sports assets often operate within unique governance frameworks. These structures can materially impact investor outcomes.
“Governance structures differ by region, jurisdiction, and sport. Investors must understand how revenues flow among participants because that determines economic outcomes.”
Examples vary widely across sports.
In the United States, closed leagues with centralized rights distribution offer predictable economics. Teams typically know their revenue and cost structure before the season begins.
In Europe, particularly in football, performance directly impacts revenue, creating greater variability.
Other sports present different dynamics. Tennis is undergoing governance changes that could attract new capital, while cycling has governance challenges that may deter investors.
“Understanding governance structures and their direction is crucial for generating alpha. Investors must also navigate the political landscape that legacy sports have inherited.”
Identifying Growth Signals in Emerging Sports
Emerging leagues and women’s sports are attracting growing investor interest. But identifying growth opportunities requires specific indicators.
“Investors look for sports where popularity and viewership are likely to increase. Viewership and attendance are key drivers of operational revenues.”
New formats are also emerging to match modern consumption habits. Examples include SailGP and TGL, which adapt traditional sports into faster, more accessible formats.
“These are not new sports, but new ways to present them. If the sporting product is compelling, you can predict a certain level of viewership from the start.”
Participation trends also provide valuable signals.
“In women’s sports, youth participation is a strong predictor of future growth. Increased grassroots participation leads to a larger talent pool and higher-quality professional products. Those who do not turn professional often become lifelong fans.”
The Economics of Fandom
Sports differs from most industries in one key respect: fan loyalty often exists before monetization.
“Fans and viewership are the heartbeat of professional sports properties,” Félix da Costa explains.
While smaller clubs may rely on player trading or alternative revenue models, premium sports properties benefit from long-term fan engagement.
“If organizations can deliver an entertaining product and a strong fan experience at a fair price, fans are willing to pledge their time, energy, and money for a long time. The fan lifecycle will outlast players, coaches, ownership groups, and sponsors.”
This durability is one of the defining characteristics of sports as an investment.
Looking Ahead
As institutional capital continues to enter the space, sports is evolving into a more mature asset class. Governance structures are improving, new leagues are emerging, and the ecosystem surrounding professional sports continues to expand.
For investors, the opportunity lies in understanding both the structural economics and the cultural dynamics that make sports unique.
And as Félix da Costa suggests, those who understand both may be best positioned to capture the next phase of growth.
