Preparing for a Sale: How Sports Businesses Can Capitalise on Australia’s M&A Surge

The sports sector in Australia is experiencing a significant increase in merger and acquisition (M&A) activity. From DAZN’s acquisition of Foxtel to BlueBet’s purchase of TopSport, and the growing interest in privatising the Big Bash League, the appetite for deals is clear. Recent National Basketball League (NBL) team transactions further confirm that investors and strategic players see long-term value in sport, fitness and entertainment assets.

If you operate a business in this space and are considering a sale in the next one to two years, the time to prepare is now. A well-prepared business is easier to sell, attracts more serious buyers and is better positioned to maximise valuation.

Below are key steps to help get sale-ready.

1. Lock Down Your Intellectual Property

All core intellectual property should be clearly owned by the company. This includes trade marks, logos, content, websites, digital products, and software. If any of this has been developed by contractors or freelancers, ensure there are written assignments in place. Without proper documentation, ownership remains uncertain, and that uncertainty creates risk for buyers.

2. Review and Formalise Key Contracts

Buyers want stability and predictability. Contracts with employees, key clients, ambassadors, suppliers and commercial partners should be up to date, legally enforceable and, ideally, assignable without consent. Many sport businesses rely on long-standing relationships that are undocumented. While that might work operationally, it does not give buyers confidence. Get these relationships in writing and renegotiate terms where needed to ensure alignment.

3. Clean Up Financials

Work closely with your accountant to prepare clear and accurate financial statements. Remove or explain any personal expenses that may have been run through the business. Transparency matters. Buyers will scrutinise margins, cost structures, cash flow and growth history. Any inconsistencies or missing information may be used to justify a lower valuation or to delay negotiations.

4. Resolve and Document Disputes

Open disputes can slow down or derail a deal. Whether it involves a former business partner, supplier, customer or employee, make sure any disputes are resolved and properly documented. That includes finalising deeds of release or settlement agreements where necessary. Buyers will expect confirmation that these issues are closed off and will not resurface post-completion.

5. Ensure Employment and Compliance Obligations Are Met

Review all employment contracts and ensure they comply with the relevant industrial instruments, such as applicable modern awards. If your business operates in a regulated space such as supplements, health, or youth sport, ensure all relevant licences and compliance requirements are in place.

Unaddressed compliance issues can materially impact the value or viability of a sale.

6. Clarify Team Structure and Contractor Status

Buyers want to understand who is essential to operations. Make sure roles and responsibilities are documented. Confirm whether individuals are engaged as employees or contractors and ensure that arrangements reflect legal obligations. Misclassified contractors can lead to employment law risks, which buyers may factor into the purchase price or use as a reason to walk away.

7. Structure the Business for a Clean Exit

Ensure the correct entity owns the assets being sold. If the IP is held by one entity, but the operations are run through another, you will need to structure the sale accordingly. Buyers prefer clean deals where all key assets, contracts and obligations sit within one clearly defined company.

At Aus Sports Law, we work with founders, business owners and investors to prepare businesses for exit. A strategic approach to pre-sale planning can protect the value you have built and ensure the deal process runs smoothly.

If you're thinking about selling or bringing in investors, contact us to arrange a confidential discussion.