The Latest Era of Institutional Ownership in Professional Sports
The landscape of Major League Baseball ownership is shifting. The recent agreement for Joshua Kushner’s firm, Thrive Capital, to acquire a minority stake in the San Francisco Giants signals a broader trend: the migration of venture capital and private equity into professional sports.
For decades, sports franchises were primarily the domain of wealthy families or individual entrepreneurs. Today, we are seeing the rise of institutional investors who view sports teams not just as passions, but as high-growth financial assets.
The Giants are a prime example of this diversification. The team now has three private equity firms involved in its ownership structure. This includes Arctos Sports Partners, which owns approximately 2% of the team, and Sixth Street, which acquired a 10% stake before the 2025 season.
The Shift Toward Non-Controlling Stakes
A key trend in these deals is the “non-controlling stake.” As reported by the Wall Street Journal, Thrive Capital’s investment is a minority position. This allows venture capital firms to gain exposure to the massive appreciation of sports franchises without needing to manage the day-to-day baseball operations.
This model provides team owners with liquidity to reinvest in the franchise while allowing investors to bet on the long-term growth of the league’s valuation.
Beyond the Diamond: Sports as a Real Estate Strategy
Modern sports investment is no longer just about ticket sales and broadcasting rights. There is a growing trend of treating stadiums as anchors for larger real estate developments.
The Giants’ agreement with Thrive Eternal highlights this strategy. According to reports from Bloomberg, a portion of the investment is earmarked specifically for Oracle Park and the team’s surrounding real estate. We have already seen the beginning of this with the revamp of the area around the Willie Mays Gate.
By investing in the “stadium district,” ownership groups can create year-round revenue streams that are independent of the team’s win-loss record. This transforms a sports venue into a mixed-use destination.
The Valuation Boom: Why Venture Capital is Betting Big
The financial incentive for firms like Thrive Capital is rooted in skyrocketing valuations. Before the 2026 season, Forbes valued the San Francisco Giants at $4.05 billion, ranking them as the fifth-most valuable team in MLB.
The market for these assets is heating up rapidly. A recent benchmark was the sale of the San Diego Padres, which sold for a record $3.9 billion, despite a previous Forbes valuation of $3.1 billion. This gap between estimated valuation and actual sale price demonstrates the aggressive demand for professional sports assets.
The Role of Strategic Advisory
To navigate this complex intersection of entertainment, tech, and sports, firms are bringing in heavy-hitting industry veterans. Joshua Kushner recently announced that longtime Disney CEO Bob Iger is rejoining Thrive in an advisory capacity to assist with these new efforts.
The inclusion of a media titan like Iger suggests that the future of sports ownership will be heavily focused on content, media rights, and global brand expansion.
Frequently Asked Questions
Who is Joshua Kushner?
Joshua Kushner is a billionaire and the founder of the venture capital firm Thrive Capital. He is the brother of Jared Kushner.
What is Thrive Capital’s role with the SF Giants?
Thrive Capital (via Thrive Eternal) has reached an agreement to acquire a minority, non-controlling ownership stake in the team, subject to MLB approval.
How will the investment be used?
The funds are expected to be used to buy out some existing investors and to invest in real estate and improvements at Oracle Park.
What is the current valuation of the SF Giants?
Forbes listed the Giants’ valuation at $4.05 billion prior to the 2026 season.
What do you think about private equity firms owning pieces of your favorite sports teams? Does it help the team grow, or does it move the focus too far toward profit? Let us know in the comments below or subscribe to our newsletter for more insights into the business of sports.
