PE’s Sports M&A Surge, Nadal’s $40M Academy & eSports Goes Big League

Good morning, ! This week we’re exploring the Rafa Nadal’s Academy business model, US turns eSports Into Big League Business. Private equity now rivals strategic buyers in sports M&A, reshaping deals and driving valuations up.

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eSPORTS

America Turns eSports Into Big League Business

The U.S. eSports market isn’t just winning—it’s lapping the field. By 2025, the U.S. will pull in $1.24B in revenue, more than double China’s $538M. That gap highlights two realities: America’s ad-heavy, sponsor-rich ecosystem versus Beijing’s regulatory brakes. Europe is catching up, led by Germany ($326M) and the UK ($251M), while South Korea ($321M) holds its legacy spot as gaming’s spiritual homeland. Even Japan ($179M) and Canada ($153M) are finding their footing. The bottom line: while the U.S. plays in major-league stadiums, the rest of the world is still scaling their Twitch streams.

MEDIA & SPORTS

Serena’s Ratings and Tennis’ Streaming Serve

The most-watched tennis match in U.S. history wasn’t a Grand Slam final, but a gender showdown wrapped in 1970s polyester: Billie Jean King vs. Bobby Riggs drew a staggering 50 million viewers in 1973. That’s more eyeballs than a Super Bowl ad exec’s fantasy. As tennis revisits talks of a unified premium tour, media rights are poised to follow golf’s LIV-PGA playbook. The Tennis Channel is actively courting investors, likely betting on Serena-style ratings magic (she features in half of the top 10 most-watched matches). Expect consolidation rumors to accelerate—because in tennis, like TV, the bigger the stage, the richer the broadcast deal. (More)

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INVESTOR CORNER

Investors Corner: M&A Activity in Sports—Private Equity Surges

The sports M&A landscape is in meaningful transition. From 2018 to 2024, total acquisitions climbed from 152 to 410—a nearly 170 % jump. But the real story lies in who’s driving it.

Strategic buyers (think leagues, broadcasters, brands) grew from 102 deals in 2018 to 220 in 2024—an admirable increase of ~116 %. Private equity, however, exploded from 50 to 190 deals—an eye‑popping 280 % gain. As of 2024, PE now accounts for 46 % of all sports M&A, nearly matching strategics.

Why this matters:

Private equity is becoming a dominant force. The rising volume reflects increasing confidence in monetizing sports assets—media rights, digital platforms, athlete-led ventures. Strategic consolidation continues. Large incumbents still pursue acquisitions to build scale, diversify content, and enter adjacent verticals. Bargaining power and multiples are shifting. As PE rushes in, valuations may climb faster—creating upward pressure on deal pricing and pushing strategics to move decisively or risk being priced out. (More)

ENTREPRENEURS

Nadal’s Second Serve Is a Business Ace

The Rafa Nadal Academy has quietly evolved into one of the sport’s most valuable brands—with none of the racket. Based in Manacor, but with an aggressive global expansion pipeline, the flagship generates €40M annually across training, food, gyms, and merch. Its growth strategy? Controlled, no-franchise, values-led expansion across Europe, Latin America, and the Middle East. Programs range from $400 summer camps to €56K/year residencies. And Nadal? Still majority owner, having cashed out €94M via GPF Capital while keeping the reins. It’s not just about building players—it’s about building a legacy business with integrity.

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TECH & INFRASTRUCTURE

AI Wants a Season Ticket to Your Wallet

Sports fans love AI highlights—but love doesn’t always equal money. Globally, 27% say they’d pay extra for AI-powered viewing: personalized camera angles, real-time stats, immersive feeds. The split is generational: Gen Z and Gen Y (31%) are most open, Gen X (23%) trails, and Boomers (16%) barely register. The kicker? Only 8% of premium fans are currently paying. Translation: interest is high, but wallets remain closed. For leagues, broadcasters, and tech providers, the challenge is turning hype into habit. Whoever nails the AI value proposition could unlock new digital revenue streams far beyond ticket sales. (More)

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