Abu Dhabi doubles down on global sports investment

• Two strategic deals this month
• Lunate invests in TPG Sports
• Mubadala Capital anchors TWG

Manchester City may have lost its grip on the English Premier League title this season, but Abu Dhabi has no intention of relinquishing its power in the sporting sphere.

The emirate has unveiled two major deals this month that underscore a strategic push to remain a dominant player in the fast-evolving sports business, even as rivals Saudi Arabia and Qatar capture global attention with high-profile events and eye-watering capital commitments.

Lunate, an Abu Dhabi-based alternative asset manager that manages more than $110 billion, has emerged as the anchor investor in TPG Sports, a newly launched investment platform targeting sports-related opportunities. 

The platform is a joint venture between private equity firm TPG and golf champion Rory McIlroy, along with his business partner Sean O’Flaherty and their firm Symphony Ventures.

“The sports industry is on the cusp of a revolution, catalysed by new technologies, evolving fan behaviour and innovative engagement channels,” said Khalifa Al Suwaidi, managing partner at Lunate, in a statement.

Parallel move

In a parallel move, Mubadala Capital, the asset management arm of Abu Dhabi’s sovereign wealth fund Mubadala Investment Company, has agreed to anchor and lead a $10 billion syndicated investment in US-based TWG Global. The sports and entertainment holding company holds stakes in high-profile franchises including the LA Dodgers, LA Lakers and Chelsea Football Club.

As part of the transaction, TWG will also acquire a minority stake in Mubadala Capital, which oversees more than $30 billion in assets.

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“This partnership gives Mubadala indirect ownership exposure to iconic Western sports franchises – a savvy move – amid the rising valuation of global sports assets and the convergence of content, fan engagement, and streaming monetisation,” sovereign wealth tracker Global SWF wrote in a blog post.

While Saudi Arabia has dominated headlines with multibillion-dollar investments in domestic football and its audacious moves into golf, tennis, boxing and motorsports, and Qatar remains a fixture in the global sporting calendar following its 2022 Fifa World Cup, Abu Dhabi is signalling its intention to stay in the race.

“With Qatar about to host events such as the basketball World Cup and Saudi Arabia now ubiquitous in sport, Abu Dhabi needs to maintain parity, compete more effectively and demonstrate a greater strategic intent to rival its neighbours,” said Simon Chadwick, professor of sport and geopolitical economy.