Record Year For Sports Tech M&A in 2024
Record-Breaking Year for Sports Tech Deals: What You Need to Know from Drake Star's 2024 Report
Hello sports tech enthusiasts 👋🏼 Welcome to Regen Sports, your twice-weekly deep dive into the intersection of sports and technology. Every Monday, catch up on the week's most important developments in sports innovation, and every Thursday, explore in-depth analysis of trends, companies, and technological breakthroughs reshaping the future of sports.
The sports tech industry shattered records in 2024, reaching unprecedented deal activity and setting the stage for continued growth in 2025, as we have seen from quarter 1 (if you’re unsure of what I’m talking about, find the sports tech Q1 roundup). Drake Star's annual Global Sports Tech Report offers fascinating insights into this booming sector. Here's what you need to know:
2024 BY THE NUMBERS
Total deal value: $86+ billion across 1,152 deals
M&A activity: $67.8 billion (78% of total value)
Private placements: $4.5 billion across 648 deals
New funds raised: $6+ billion dedicated to sports investments
MAJOR TRENDS THAT DEFINED 2024
M&A BOOM: 2024 was the strongest year ever for sports tech M&A, with disclosed value 1.7x higher than 2023. Notable mega-deals included:
Silver Lake's $13B take-private of Endeavor
Skydance's $8.4B acquisition of Paramount
KKR's $4.75B acquisition of Varsity Brands
Private Investment Spotlight: While total financing volume decreased slightly (8.3% fewer deals than 2023), there were still 17 investments exceeding $50M, including:
Riddell's $400M raise from BC Partners
Infinite Reality's $350M fundraise
Cosm's $300M financing
Geographic Breakdown: North America continued to dominate, representing 60% of deal value, though Europe remained active with 24% of deal value.
Sector Performance: The Athlete Performance sector led public markets with a stunning 52% return, vastly outperforming other sports tech categories and the broader S&P 500 (23.3%).
LOOKING AHEAD TO 2025
2025 has already started strong with several major transactions:
TKO acquiring IMG, On Location, and PBR for $3.25B
DAZN raising $1B from Saudi investors
Infinite Reality securing $3B in new funding
Experts predict continued momentum with:
Robust M&A activity from both strategic and financial buyers
Recovery in mid-to-late stage financing
Potential IPOs as markets stabilise and interest rates decline
Particular growth in AI-driven analytics, immersive fan technologies, and venue tech solutions
WHAT THIS MEANS FOR THE INDUSTRY
The unprecedented level of investment signals mainstream recognition of sports tech's value. Private equity firms are doubling down with dedicated sports funds (Arctos raised $4.1B, Shamrock $1.6B), while league ownership rules are relaxing to accommodate new investment structures.
The consolidation trend appears set to continue through 2025, creating both challenges and opportunities for companies across the sports tech ecosystem.
Data source: Read the full Drake Star Global Sports Tech Report 2024
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