EQT’s agreement to buy a majority stake in Melbourne Storm represents the first significant PE investment in an Australian rugby league club – and the firm’s debut direct deal involving any sports team globally.

The context, however, is seemingly at odds with that of large-cap managers that have positioned sports as a standalone strategy, or even a distinct asset class within private markets. EQT regards it as part of a broader sectoral convergence in Asia.

“Sports sits alongside education and media as one of the areas EQT has real thematic conviction,” said Alexander Hansen, a managing director and the firm’s investment lead for sports and education in Asia Pacific.

“IMG Academy is probably one of the clearest examples of what that looks like in practice. It is one of the world’s leading institutions for athlete development, but at its core it is also educating young individuals and helping them progress towards collegiate and professional sport.”

The two investments fall into different funds based on their respective sizes. Storm – which will reportedly transact at a valuation of approximately AUD 150m (USD 107m) – is set to join EQT’s debut Asia mid-market fund, a USD 1.6bn vehicle that closed in 2024. IMG was acquired by the firm’s eighth flagship regional buyout fund in 2023 for USD 1.25bn.

But this is no obstacle to collaboration. Hansen believes Storm can draw on IMG’s expertise in player development, strength and conditioning, and mental performance. Beyond that, asked why Storm opted for a global PE firm above other options, he pointed to EQT’s scale, resources and capital, as well as experience in areas such as growth, international expansion, and strategic partnerships.

“We also have a strong track record of using AI [artificial intelligence] and technology to help the businesses we back perform better. For the Storm, that could mean investing further in the tools, data, and analytics that support both the football programme and the club’s commercial growth, while further building the club’s profile and reputation,” Hansen added.

Institutional incursion

Subject to approval from the Australian Rugby League Commission (ARL) and the competition regulator, EQT will have board representation alongside other members of the ownership group, with Matt Tripp – one of the existing shareholders – remaining as chairman. This is the culmination of a process run by Storm to identify potential strategic investors that could help take the club forward.

Seeking external investment is relatively unusual in the National Rugby League (NRL) where most of the 19 clubs, including two expansion teams, are controlled by member associations or by the ARL. Where there is private ownership – as was the case with Storm prior to EQT – it tends to be media companies or high net worth individuals.

Institutional investor involvement is rare across Australia’s professional sporting landscape. The Australian Football League (AFL), which sits alongside NRL as the nation’s most valuable league ecosystem, follows a similar model of member or league ownership.

Hansen declined to offer a view as to whether the lack of private equity penetration is a function of ownership structure. “What we can see is that a number of other private and listed NRL teams have been successful. The NRL itself is a well-governed league with strong fundamentals and a structure that supports its teams in being competitive, both on and off the field,” he said.

There was also a reluctance to comment on the likelihood of Australia replicating patterns seen in the US and Europe where private equity investors have taken stakes in individual clubs as well as in leagues and entities that hold media rights.

Commercial viability

Across Asia Pacific, the only previous targets for global private equity have been the commercial arm of New Zealand’s rugby team and franchises competing in cricket’s Indian Premier League (IPL). IPL’s exceptional status is reflected in what Houlihan Lokey describes as a “near-perfect blend of predictable cash flows and cost discipline” that compares favourably to the US and Europe.

NRL can boast a degree of certainty regarding broadcast revenue. Last month, ARLC secured the largest media rights deal in Australian sports history as Foxtel Group, Nine Entertainment and Sky NZ committed to pay AUD 5.3bn for the 2028-2034 period. The current five-year deal is worth AUD 2bn.

Comparisons with IPL are arguably unfair, given the discrepancy is market size. It generated an estimated USD 1.21bn in revenue for the 2025 season and has a five-year media rights deal of USD 5.4bn through 2027. Earlier this year, a consortium featuring Blackstone acquired a franchise at a USD 1.78bn valuation.

But NRL’s AUD 845m for 2025 still represents a 116% increase over a 10-year period in a more mature commercial environment. Hansen said the new media rights agreement, plus the expansion teams – in Perth and Papua New Guinea – increasing TV viewership and broad appeal to fans of all ages indicate strong momentum. And EQT is prepared to be patient.

“Sports and education are both sectors where it’s important to invest with a long-term perspective and deliver for a wide range of stakeholders, whether they’re students, athletes, fans, or communities,” he added.