Ares Management Eyes $3 Trillion in Sports, Media Growth
Ares Management has identified a US$3 trillion opportunity in the sports, media, and entertainment (SME) sector. The firm has made over 100 investments in this ecosystem over the past 20 years, witnessing firsthand the evolution of media rights and the rise of streaming and live sports as major revenue drivers.
Recent deals highlight the sector’s growth. Australia’s National Rugby League secured a seven-year, $5.3 billion media rights agreement, a record for Australian sports, reflecting the increasing value of live sports content. Globally, the 2026 FIFA World Cup generated $15 billion in media rights revenue, showing the global appetite for premium sports content. These deals illustrate the growing commercialization of sports and the expanding opportunities within the SME sector.
Beyond Team Ownership: A Broader Investment Strategy
Ares established a dedicated SME investment platform in 2020, leveraging its extensive experience to provide flexible capital through debt and equity. John Knox, Partner and Head of Australia/NZ at Ares, highlights the shift in media consumption patterns. While content consumption has become more fragmented, live sports remain a unifying force, driving collective viewership and increasing their media value. This trend has led to a significant rise in the value of media rights and related assets.
Ares’ strategy extends beyond traditional team ownership, targeting the entire SME ecosystem. This includes facility operators, merchandise, streaming, data analytics, and even music royalties. By diversifying across sectors, geographies, and the capital structure—from senior debt to equity—Ares aims to capitalize on the complex growth opportunities within the SME sector. This approach allows the firm to mitigate risks and maximize returns across various asset classes.
Knox emphasizes the strategic advantages of this diversified approach. In Europe, for instance, investing across the capital stack can mitigate relegation risks associated with team ownership. For financial advisers, SME investments offer portfolio diversification due to their unique return drivers and historically lower volatility compared to traditional assets like equities and bonds. This makes SME investments an attractive alternative for investors seeking stable, long-term growth.
Looking ahead, Knox identifies emerging areas such as music royalties as promising investment opportunities. With major events like the 2032 Brisbane Olympics on the horizon, the SME environment is poised for continued evolution, offering fresh prospects for investors. These developments highlight the dynamic nature of the SME sector and its potential for sustained growth.
Ares Management Corporation is a global alternative investment manager with a focus on credit, real estate, private equity, and infrastructure. Its Wealth Management Solutions division partners with financial institutions to provide access to private markets, further expanding its reach and impact in the investment environment.
Ares’ Broader Ecosystem Approach
Ares’ strategy targets the entire SME ecosystem, encompassing areas such as facility operators, merchandise, streaming, and data analytics. This diversification spans sectors, geographies, and the capital structure, from senior debt to equity. By investing across the capital stack, Ares not only mitigates risks like relegation in European sports but also captures value from various segments of the SME market. This wide-ranging approach positions Ares to benefit from the growth of the entire ecosystem, not just individual components.
Future Opportunities and Long-Term Fundamentals
Knox points to emerging areas like music royalties as indicative of the sector’s evolving nature. Ares has already made investments in the English Premier League, Australian rugby union, cricket, and other sports, all of which are experiencing similar growth trends. The value of sporting teams and the broader ecosystem, including apparel and data analytics, continues to rise, presenting diverse investment opportunities.
