Recent reports around football ownership show that investor appetite for sport remains strong. Liverpool FC has announced a strategic minority investment from 1892 Holdings, a consortium led by Amit Bhatia and including investment from the Mittal Family Trusts, K5 Sports, with Jeff Bezos as lead investor in that fund, and EE Capital. Fenway Sports Group will retain majority ownership and operational control, with the investment intended to support long-term growth on and off the pitch. At the same time, reports suggest Todd Boehly and Mark Walter have explored selling their respective minority interests in Chelsea to majority owner Clearlake Capital, in a potential transaction that would further consolidate ownership.
These developments are a reminder that sport, and football in particular, continues to attract sophisticated capital. The attraction is not simply sentiment or profile. The investment case often rests on a combination of recurring revenues, global reach, asset ownership, commercial upside and the scarcity value of leading clubs. Yet these same characteristics can make investments more complex to evaluate. However, those features do not remove risk. In many cases, they make proper diligence more important. For investors, funders and owners, understanding what sits behind the headline valuation is often the difference between a strong investment and an expensive lesson.
Matchday, hospitality, sponsorship, broadcasting, retail, catering, player trading and academy activity can all form part of the financial profile. Investors must look beyond the headline revenue figure and understand the sustainability and quality of those earnings. Considerations such as revenue diversification, player transfer records, parachute payments, one-off income and costs, owner funding requirements, player contracts, agent arrangements, compliance with salary cost rules, asset valuations, net debt and normalised working capital are often central to whether the headline valuation is supported by sustainable earnings and cash generation.
Against that backdrop, financial due diligence therefore plays a critical role in cutting through the story of a club and assessing the underlying position. For buyers and funders, this means understanding the quality of historical trading, the reliability of forecasts, the basis of management information, the working capital cycle and the extent to which current performance depends on exceptional items. In sport, reported results can be particularly sensitive to player transfers, promotion or relegation, cup runs, broadcast distributions, sponsorship renewals and ownership funding. A diligence process should therefore identify what is repeatable, what is contingent and what may change under new ownership.
The balance sheet is equally important. Player registrations, stadium arrangements, lease commitments, related party balances, restricted cash, deferred income and debt-like items can all affect the bridge from enterprise value to equity value. Due diligence typically includes analysis of net working capital, net debt, debt-like items, contingent liabilities and off-balance sheet items, together with consideration of valuation judgements, depreciation and impairment policies. These factors can have a significant impact on transaction value and negotiations, regardless of the headline purchase price. In a sector where losses may be accepted as part of a growth or performance strategy, the route from EBITDA to cash can be more important than the EBITDA number itself.
Financial considerations are only part of the picture. Tax due diligence is also a key part of the investment process. Sports organisations often have complex tax profiles, including employment tax, VAT, corporation tax, agents’ fees, benefits in kind, off-payroll workers, international transactions and group structures. Tax due diligence scopes include corporation tax compliance, VAT filings and partial exemption, HMRC enquiries, employment taxes, payroll compliance, P11Ds, PAYE and National Insurance, directors’ remuneration, non-employee workers, agents and off-payroll payments. In a transaction, these areas can affect price, indemnities, warranties and post-completion cash requirements.
Alongside commercial, financial and tax considerations, changes in financial reporting standards are creating additional complexity for investors. The amendments to FRS 102 will apply for periods commencing on or after 1 January 2026, with the most significant changes affecting revenue recognition and lease accounting. For sports organisations, commercial contracts with multiple performance obligations may require more granular analysis of how revenue is allocated and recognised, particularly where sponsorship rights, advertising, hospitality, social media activations and player appearances are bundled into one agreement. Lease accounting changes may also bring more assets and liabilities onto the balance sheet, affecting reported debt, finance costs and key ratios.
For investors, these accounting changes matter because they can influence earnings, debt metrics, covenant calculations, budgets and compliance with sport-specific financial rules. The accounting answer may not change the commercial value of a club, but it can change the way value, leverage and performance are presented. That is why accounting policy review, revenue recognition, lease accounting and asset valuations should be considered early in any diligence process.
Taken together, these considerations highlight why sector-specific diligence has become increasingly important as investment structures grow more sophisticated and clubs pursue new sources of growth.
The wider point is clear. Sport remains attractive because it combines durable fan engagement, international visibility and multiple commercial routes to growth. For many investors, those fundamentals continue to underpin a compelling long-term growth story. But the best investors will not assess a club solely by its brand, league position or recent transfer activity. They will want to understand the quality of earnings, funding requirements, tax position, regulatory constraints and the robustness of the finance function.
This is where sector expertise becomes invaluable. Conducting diligence in sport requires more than technical accounting knowledge. It requires an understanding of the commercial, regulatory and operational drivers that are unique to the industry, from player trading and sporting performance to governance requirements and evolving financial regulations.
HaysMac’s Sports team works with athletes, agents, governing bodies, professional teams and clubs, major event organisers and sports technology businesses, supporting transaction, growth strategies and ongoing financial management. The team has delivered accountancy and tax solutions to the sports sector for over 20 years and combines sector knowledge with financial and tax expertise across a wide range of sporting organisations.
For buyers, sellers and funders, the message is straightforward: sport can be a compelling investment, but it is rarely a simple one. Robust financial and tax due diligence helps identify risks, test valuation assumptions and give all parties a clearer view of what is really being bought. In a market where capital remains active but scrutiny is increasing, informed decision-making has never been more important. The better the diligence process, the greater the confidence investors can have in what they are buying and the value they can ultimately create.
Whether you’re acquiring, investing in or funding a sports organisation, our specialists can help you understand the financial, tax and operational factors that underpin long-term value. Get in touch to start the conversation.
