Business Model of Sports Leagues and Franchises

Manchester United
Manchester United

I am sure this is well known that PE firms run most of the world.  What might not be as well known, would be that PE firms take active control and interest in sports leagues/teams as well.  Before we get into the why's and how's important to understand the concepts.

A Sports Franchise is a single team amongst a host of other Teams in the League.  E.g. Manchester United, FCB, CSK etc.

Sports Leagues would be the combination of  these sports teams to form a league running a common theme.  These can be Football, Soccer, Cricket, Basketball, Racing etc.  E.g. NFL, NBA, MLB, IPL, La Liga etc.

The sports leagues are the event runners i.e. the organizers and owners of the event.  They setup, organize and do every thing that is required to make the event a success.

Business Model of Sports Leagues

Sports Leagues are companies (businesses) first and anything else next.  They operate as a for profit organization who derives the revenue from a host of things as below: