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- Learfield co-owner Charlesbank Capital Partners to remain as minority owner
- TPG previously owned majority stake in CAA
Private equity firm TPG has reportedly reached a deal to buy college sports multimedia rights agency Learfield, for roughly US$2 billion.
According to Sports Business Journal (SBJ), Learfield co-owner Charlesbank Capital Partners will remain a minority owner of the business, while Fortress Investment Group is to sell its entire shareholding as part of the transaction. SBJ reports Learfield chief executive and president Cole Gahagan and other leading figures are to remain at the company, with no immediate management changes expected.
Founded over 50 years ago, Learfield’s current structure was established in 2018 through a merger with IMG College. It is among the leading third-party multimedia rightsholders in college sports, working with hundreds of Division I schools such as Ohio State University, the University of Alabama and the University of Texas.
As well as managing media rights, the company also works with schools on licensed merchandise, ticketing, and providing technological support for official websites and mobile apps.
In 2023, Learfield closed a recapitalisation transaction worth US$1.1 billion, with its outstanding debt reduced by over US$600 million. It also secured US$150 million in fresh equity investment, which led to Charlesbank, Fortress and Clearlake Capital becoming majority owners of the business. Clearlake subsequently exited its stake in the agency.
Now the company comes under the control of TPG, which previously tried to buy Learfield during its sale in 2016. The firm notably sold its majority stake in Creative Artists Agency (CAA) to Francois-Henri Pinault in 2023 in a deal that valued the agency at US$7 billion.
The alternative asset manager currently manages over US$303 billion in assets as of the end of last year. It has also moved into the sports space, forming the TPG Sports investment fund alongside golf star Rory McIlroy and his Symphony Ventures company.
SportsPro says…
Learfield has built a diverse business that offers a range of services for schools trying to expand their revenue streams at a time when college sports are becoming increasingly commercialised and the financial burdens ever greater. The latest development in this shift is direct payments to student athletes who had previously been prohibited from making money from their sporting activity until NIL rules were liberalised in 2021.
This commercial expansion has attracted the interest of private equity firms who are increasingly active in sport. Otro Capital became the first company to partner with a school through a deal with the University of Utah last December, while the Big 12 and Big Ten have also been linked with conference-wide transactions. However, not everyone is as optimistic about the investment potential of college athletics, with Dave Checketts noting at SportsPro New York he was sceptical if the returns would match professional leagues.
But TPG’s decision to swoop for Learfield suggests that private equity has other ways to take a cut of the commercial revolution in student athletics beyond direct investments.
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