Alan Waxman, co-founder and CEO of Sixth Street, recently detailed the investment firm’s strategic expansion into the global sports market. The firm has transitioned sports franchises into a recognized institutional asset class, focusing on long-term value through media rights and infrastructure. By securing major partnerships with entities like Real Madrid and FC Barcelona, Sixth Street is leveraging the commercial potential of stadium operations and broadcasting. Waxman highlighted that these investments are driven by the sector’s high barriers to entry and the increasing demand for professional sports content worldwide.
- Sixth Street secured a €360 million agreement with Real Madrid to develop and operate various businesses at the Santiago Bernabéu Stadium for 20 years.
- The firm acquired 25% of FC Barcelona’s domestic La Liga television rights for a period of 25 years.
- Waxman emphasized that sports assets are attractive to institutional investors due to their non-correlated returns and resilient revenue streams from media and sponsorships.
- Sixth Street launched Bay FC, a professional women’s soccer team in the NWSL, committing $125 million to the expansion franchise.
- The investment strategy focuses on operational involvement and infrastructure improvements rather than just passive minority ownership.
- The shift toward private equity in sports is attributed to the rising valuations of teams and the need for sophisticated capital to fund large-scale stadium renovations and global branding.
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Sports didn't need this
Great interview!
This dude did a line right before the interview or what