Pro sports leagues have grown at an incredible pace over the last decade…
And the data is quite shocking.
I’m sure we’ve all seen this chart at some point:
Why the most popular leagues have flourished:
- legalization of sports betting
- massive media rights deals fueled by cord-cutting
- scarcity of franchises and introduction of private equity
- corporate sponsorships (sports are the last place for live TV)
But where will these traditional leagues go next?
Let’s Dive In 👇
3 Revenue Streams Leagues Will Go After Next
The debate I keep hearing is, “Are sports teams overvalued?”
- Yes, in the fact, their valuations are ahead of their growth.
- No, when you view teams/leagues as media and technology providers with a core focus on sports.
Let’s cover the three areas they’re going after next.
1. International
From 2008 to 2016, an average of six international games were played across the Big 4 US sports leagues.
That number more than doubled from 2017 to 2024, with an average of 14 regular-season games played internationally per year.
The rapid increase in international games has coincided with the rise of international athletes…
But the Big 4 Leagues will continue to push for international regular season games for three main reasons:
- to bolster rights agreements
- to grow their international fanbase
- to execute on sponsorship opportunities
It’s pretty simple…
Live attendance builds fandom, leading to greater in-market demand for the product and more revenue through international media rights and sponsorship.
By going international, leagues will be “renting”, but the next evolution is “owning”.
2. Expansion Teams
New franchises are one of the most direct ways for sports leagues to generate additional revenue and broaden their footprint.
Two main reasons for expansion teams:
- Substantial Fees: boosting overall league revenue while simultaneously rewarding existing owners.
- Increased Media Inventory: boosting the supply of valuable live sports content and driving up media rights.
As more cities and ownership groups vie for a slice of the pro sports market, expect to see a continued push for expansion to unlock new revenue streams.
3. Acquisitions/Investments
We’ve already seen the big leagues start their own venture arms, similar to how corporate venture capital works.
- NBA Equity
- 32 Equity (NFL)
- AO Startups (Australian Open)
However, it’s mainly been small minority equity investments in later-stage companies (e.g., the NFL purchased a 3% stake in Fanatics in 2017 at a $3B valuation—now worth 10x as Fanatics is valued at $31 billion).
I believe where it goes next is actual acquisitions and majority controlling stakes in areas such as:
- Emerging or alternative leagues (e.g., developmental leagues, alternative formats like 3on3 in basketball) to capture new audiences and cross-pollination opportunities for talent, sponsorships, and media rights.
- R&D hubs that can deliver next-gen solutions—from biometrics tracking to AI-powered highlight reels.
- Technology platforms like data analytics firms, streaming services, or sports-betting operators to deliver richer fan experiences and create lucrative new revenue channels.
- Adjacent areas like facility management companies, music festivals, and esports platforms to create new lines of business and keep fans engaged year-round.
- If college programs come to the market, that would make a ton of sense, and the same with prep schools and academies for high school athletes.
Revenue Stream #4
While I think the revenue streams above are incredibly significant.
There is one more that I think is even more important — and will transform the entire sports ecosystem as pro leagues go after it.
I’m providing this one exclusively for members of Profluence+.
Looking Ahead
Professional sports have recognized that they aren’t just staging competitions anymore…
They’re creating and distributing high-value content, managing fan communities, and deploying sophisticated technology — traits that mirror major tech and media organizations.
With valuations skyrocketing and alternative leagues gaining market share…
The Big 4 Leagues will go international first, expand to new markets, and then use strategic acquisitions to accelerate innovation and diversify revenue.
An exciting period of innovation is ahead of us.
