The United Soccer League (USL) announced a strategic investment from BellTower Partners, the private investment firm founded by former Carlyle Group CEO Kewsong Lee, who joined the USL Board of Directors as Vice Chair. While financial terms were not disclosed, the minority equity stake positions USL for its ambitious plan to launch a top-tier Division One men's league in 2028 with promotion and relegation—challenging Major League Soccer's closed-system dominance.

Lee brings over three decades of experience leading large, complex organizations. During his tenure as Carlyle's CEO from 2018-2022, he led rapid growth and diversification. Since founding BellTower in 2023, the firm has taken strategic stakes across industries including Ascot Group Limited (specialty insurance) and Patricof Co (sports asset investment firm). BellTower has also invested in United Sports Development Partners, developer of Rhode Island's Centreville Bank Stadium, and is backing a $600 million stadium and mixed-use project in Albany, New York.

USL operates a complete soccer ecosystem spanning youth to professional levels for both men and women: the announced Division One league, USL Championship (Division II), USL League One (Division III), USL League Two (pre-professional), and the Gainbridge Super League (women's professional). The organization impacts over 200 communities nationwide and uniquely offers a complete youth-to-professional pathway under one umbrella.

Strategic Timing Factors:

The investment validates USL's thesis that American soccer can support multiple professional tiers with club independence and competitive promotion/relegation, aligning the U.S. more closely with global soccer norms. 

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The Big 12 Conference reached advanced negotiations with Collegiate Athletic Solutions (CAS)—backed by RedBird Capital Partners and Weatherford Capital—on a groundbreaking deal that could make up to $500 million available to member schools without surrendering equity stakes. This structure represents a fundamental shift in how conferences access capital while maintaining institutional control.

Unlike traditional private equity investments that acquire ownership stakes, the Big 12 arrangement focuses on revenue-sharing mechanisms. This approach allows the conference to secure immediate capital for infrastructure improvements, technology investments, and competitive positioning while preserving the governance structure that member institutions require. The deal reflects growing sophistication in structuring capital partnerships that respect the unique dynamics of collegiate athletics.

Conference Commissioner Brett Yormark has positioned the Big 12 as the "most globally relevant" conference, with this capital infusion supporting international expansion initiatives, enhanced media production capabilities, and the competitive investments necessary as college sports continue their transformation into professionalized entertainment properties.

The University of Utah became the first NCAA athletic department to accept private equity investment through a $500 million partnership with Otro Capital via the newly formed Utah Brands & Entertainment LLC. This entity will manage the commercial operations of the athletic department including sponsorships, ticketing, and licensing—essentially creating a professional business unit to maximize revenue from Utah's sports properties.

The structure allows Utah to access institutional capital to fund Name, Image, and Likeness (NIL) obligations and facility upgrades while maintaining operational control of the athletic program. This pioneering arrangement creates a template that other universities are actively studying as they confront the escalating costs of competing at the highest levels of college sports.

Investment Considerations:

The deals collectively signal that institutional capital has found pathways into college sports despite traditional resistance. As NIL obligations, facility arms races, and revenue-sharing mandates with athletes escalate costs, these structures provide universities access to capital markets while navigating governance requirements unique to educational institutions.

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Apollo Sports Capital acquired a 55% majority stake in Atlético Madrid for a valuation of approximately €2.5 billion ($2.55 billion), representing the second-highest control sale of a soccer club ever (after Chelsea's $3.16 billion acquisition in 2022). The transaction, expected to close in Q1 2026, marks Apollo's flagship entry into European football after launching a $5 billion sports investment fund in September 2025.

The deal's strategic significance extends beyond the club itself. Atlético is developing Ciudad del Deporte (Sports City), a €350+ million mixed-use district adjacent to the Metropolitano Stadium in partnership with Madrid City Council. The project encompasses training facilities, retail, hospitality, and public spaces designed to generate year-round revenue—transforming the club from a matchday-dependent entity into a real estate-anchored entertainment platform.

Alexander Jarvis, Founder of Blackbridge Sports LLC, noted that "real estate is now a core pillar alongside media rights" for U.S. private equity in European football. The infrastructure-heavy scope differentiates this from traditional club acquisitions, with Apollo viewing the investment as a sports-anchored urban development opportunity in a top-tier European capital.

The timing of Apollo's acquisition coincides strategically with LaLiga's announcement of a new €5.25 billion domestic television rights deal for 2027-2032, averaging €1.05 billion per season—a 9% increase over the previous cycle. While this represents growth, LaLiga still trails the Premier League (€1.6B per season) and Bundesliga (€1.346B per season), suggesting potential upside if Spanish football can close the valuation gap.

Atlético benefits from LaLiga's centralized equal distribution model, which provides revenue stability but caps upside compared to the Premier League's structure. The club generated €395 million in revenue during 2023-24, with approximately 49% from broadcasting, 16-18% from commercial partnerships, 10-15% from matchday, and 11-14% from player trading.

Investment Framework Analysis:

The transaction exemplifies how global asset managers are approaching elite European clubs as multi-dimensional platforms combining sports entertainment, real estate development, brand IP, and digital engagement—rather than purely athletic entities.

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Women's soccer is experiencing unprecedented growth both on and off the pitch, with projections suggesting it will enter the global top five sports by 2030 with over 800 million fans worldwide. The National Women's Soccer League (NWSL) has emerged as the epicenter of this transformation in North America, with franchise valuations skyrocketing and institutional capital flowing into the ecosystem.

The NWSL's most recent expansion demonstrated this momentum: Denver Summit FC secured a franchise at a record $110 million expansion fee in early 2025—nearly triple the $53 million paid by Boston and San Francisco just two years prior. This exponential growth trajectory continued through the year, culminating with Arthur Blank's announcement that Atlanta would receive the league's 17th franchise, beginning play in 2028 at Mercedes-Benz Stadium with an expected capacity of 28,000.

From a commercial standpoint, the league secured a four-year media rights deal worth $240 million spanning CBS Sports, ESPN, Prime Video, and Scripps Sports—representing a 40x increase in average annual value compared to the previous agreement. League-level sponsorship revenue increased more than 200% since 2022, while club-level investment surged over 150% during the same period.

McKinsey analysis projects the broader women's sports market could reach $2.5 billion by 2025, with brand sponsorships representing the largest revenue share, followed by ticketing, broadcast media rights, and merchandise. The NWSL alone generated approximately $60 million in sponsorship revenue in 2024, with the WNBA reaching $55 million—more than double what it generated in 2020.

As the women’s soccer ecosystem continues to evolve, the USL’s Gainbridge Super League is a league worth keeping on your radar. It represents an early-stage asset in women’s sports that is still establishing its foundation, with the league now halfway through its second season. When paired with a USL men’s team within a single market—across a broader soccer, stadium, and real estate platform—you begin to see the vertically integrated men’s and women’s model that many investors are increasingly focused on.

Additionally, given the valuation trajectory we’re seeing in the NWSL, a compelling question emerges: could we see a future where current MLS ownership groups look to pair Gainbridge Super League teams with their existing MLS assets? In light of rising NWSL valuations, this bundled ownership model could become a real consideration for team owners and investors. It’s not a certainty, but it’s a possibility worth monitoring as the landscape continues to shift.

The timing appears strategic as the U.S. prepares to co-host the 2026 FIFA Men's World Cup and campaigns for the 2031 FIFA Women's World Cup, creating sustained momentum for soccer infrastructure and fan engagement across all levels.

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The University of Utah became the first NCAA athletic department to accept private equity investment through a $500 million partnership with Otro Capital via the newly formed Utah Brands & Entertainment LLC. This groundbreaking transaction created a professional business entity to manage the commercial operations of the athletic department—including sponsorships, ticketing, and licensing—while the university maintains full operational control of the athletic programs themselves.

The structure represents a sophisticated solution to college athletics' existential challenge: how to access institutional capital markets while respecting the nonprofit educational mission and governance requirements that define NCAA institutions. By carving out commercial rights into a separate LLC that can accept PE investment, Utah established a template that dozens of other universities are now actively studying and attempting to replicate.

Utah's decision to partner with private equity wasn't driven by financial distress but by strategic opportunity. The Utes compete in the Big 12 Conference (after leaving the Pac-12) and needed capital to:

Otro Capital brings operational expertise in sports commercialization, media rights optimization, and sponsorship sales—capabilities that most university athletic departments lack despite managing nine-figure budgets. The partnership essentially outsources the commercial function to specialists while keeping coaches, competition, and student-athlete welfare under university control.

The Utah-Otro structure solves several problems simultaneously:

For Universities:

For Private Equity:

For College Sports Ecosystem:

Despite the elegant structure, significant risks remain. The NCAA's evolving rules around athlete compensation, the ongoing House v. NCAA settlement discussions, and potential federal legislation could all fundamentally alter the economics underpinning these deals. Universities must balance maximizing commercial revenue against maintaining educational values and community support—fanbases may resist excessive commercialization even if financially rational.

Additionally, the deal creates precedent for hundreds of athletic departments with less sophisticated commercial operations and smaller fan bases. While Utah can leverage its strong regional brand and competitive programs, many schools may struggle to attract PE interest or justify similar valuations, potentially widening the gap between haves and have-nots in college sports.

Since Utah's announcement, multiple athletic departments have disclosed they're in discussions with private equity firms about similar arrangements. The structure Utah pioneered—commercial rights carve-out with professional management while preserving athletic operations control—appears to be the model that can navigate NCAA governance, university boards, and state regulations.

This represents the first wave of institutional capital entering college athletics at the school level (rather than conference or league level). As NIL costs escalate, facility expectations rise, and direct athlete compensation becomes mandatory, expect dozens of programs to follow Utah's playbook over the next 24-36 months.

Investment Thesis Summary:

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A growing number of professional athletes are expanding their influence beyond the field and into ownership, investing, and business operations across the sports ecosystem. Rather than serving solely as brand ambassadors, today's athletes are leveraging firsthand industry knowledge, long-term brand equity, and trusted networks to identify compelling investment opportunities in teams, leagues, media, and sports-adjacent businesses. This shift reflects a broader evolution in how athletes view career longevity, wealth creation, and impact beyond their playing years.

To explore this shift in greater depth, we sat down with former NFL offensive lineman Justin Pugh for our latest podcast episode. Listen to our podcast to hear how athletes are approaching the business side of sports with increasing sophistication and strategic intent.

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