Josh Harris and the Future of Sports Ownership: A Look at Private Equity and Public Markets
In a significant development for the sports industry, Josh Harris, managing partner of the Washington Commanders, recently addressed the future of sports ownership at CNBC’s Sport and Boardroom’s Game Plan conference in Santa Monica, California. Harris, who has built a formidable sports empire through his company, Harris Blitzer Sports & Entertainment (HBSE), shared insights into the valuation of sports franchises and the potential for public offerings in the sector.
The Rise of Harris Blitzer Sports & Entertainment
Over the past decade, Josh Harris has emerged as a key player in the sports investment landscape. Co-founding HBSE with David Blitzer in 2017, Harris has amassed a diverse portfolio that includes majority stakes in several high-profile franchises. These include the NFL’s Washington Commanders, the NBA’s Philadelphia 76ers, the NHL’s New Jersey Devils, and the Premier League’s Crystal Palace. Earlier this year, HBSE expanded its reach by acquiring a WNBA expansion team in Philadelphia, set to debut in 2030, for a franchise fee of $250 million.
This rapid expansion has positioned HBSE as one of the most valuable sports ownership groups globally, with a valuation of $14.58 billion, ranking third on CNBC’s 2025 Most Valuable Sports Empires list. However, this meteoric rise raises questions about the future direction of sports ownership, particularly regarding the potential for public offerings.
The Public vs. Private Ownership Debate
During the conference, Harris expressed skepticism about the viability of initial public offerings (IPOs) for sports franchises. He noted that, historically, sports assets have been valued more favorably in private markets compared to public ones. “You haven’t seen the public valuations exceed the private valuations; therefore, people have tended to keep them private,” he stated.
This sentiment echoes a broader trend in the sports industry. While a few franchises, such as the New York Knicks and Rangers, are owned by public companies like Madison Square Garden, most teams remain privately held. Harris pointed out that these public entities often trade below their intrinsic value, suggesting that the market has not fully embraced the concept of publicly traded sports teams.
Long-Term Perspectives in Sports Management
One of the primary reasons for the reluctance to go public, according to Harris, is the desire for long-term investment strategies. “People have tended to keep them private because ultimately as someone who is running a team, you want to be able to spend to win,” he explained. The pressure of quarterly earnings reports and short-term performance metrics can hinder the ability of team owners to make decisions that prioritize long-term success.
Harris’s recent acquisition of the Commanders exemplifies this long-term approach. He secured a $3.7 billion deal to relocate the team from Landover, Maryland, to Washington, D.C., on the grounds of the Robert F. Kennedy Memorial Stadium. “We’re not going to see the profits from that for years and years later,” he acknowledged, highlighting the patience required in sports investments.
The Changing Landscape of NFL Ownership
The NFL has been evolving in its approach to ownership and investment. In a landmark decision last year, the league approved select private equity firms to take minority stakes in franchises. This move has opened new avenues for funding and investment, allowing owners like Harris to focus on long-term growth without the immediate pressures of public market expectations.
Harris noted that many of these private equity funds are structured as long-date funds, which do not impose the typical control measures associated with private equity investments. This flexibility allows team owners to adopt a long-term perspective, betting on the growth of the city, fan support, and the league itself.
Historical Context: The Evolution of Sports Ownership
The landscape of sports ownership has undergone significant changes over the past few decades. Historically, sports teams were often family-owned or held by a small group of investors. However, the influx of private equity and institutional investors has transformed the industry, leading to unprecedented valuations and ownership structures.
In the 1980s and 1990s, the concept of sports franchises as investment vehicles began to gain traction. The sale of the Los Angeles Lakers in 1997 for $200 million marked a turning point, as it set a new standard for franchise valuations. Since then, the value of sports teams has skyrocketed, with franchises now selling for billions of dollars.
The rise of private equity firms in the sports sector has further accelerated this trend. These firms bring significant capital and expertise, allowing teams to invest in infrastructure, player development, and marketing. However, the question remains: will this trend lead to a shift toward public ownership, or will private ownership continue to dominate?
Conclusion: The Future of Sports Ownership
As Josh Harris navigates the complexities of sports ownership, his insights shed light on the broader trends shaping the industry. While the allure of public markets may be tempting, the realities of sports management often favor private ownership. The long-term nature of sports investments, coupled with the evolving landscape of NFL ownership, suggests that private equity will continue to play a pivotal role in the future of sports franchises.
As the sports industry continues to grow and evolve, the decisions made by influential figures like Harris will undoubtedly shape the landscape for years to come. Whether through private ownership or potential public offerings, the future of sports ownership remains a dynamic and closely watched arena.
