In recent years, private equity has changed the global sports landscape, with clubs from Major League Baseball (MLB) and the National Football League (NFL), rugby union in New Zealand and European soccer reaping massive financial benefits.

Sports codes in Australia and New Zealand have also dipped their toes in the water, with potentially more to come: Cricket Australia is reportedly considering selling its Big Bash League teams to private investors.

However, there may be tax implications and other risks that negatively impact these leagues, which enjoy tax exemption status as not-for-profit entities that promote or encourage sport.

Private equity investments raise questions over whether sporting bodies can continue to claim the tax exemption.

Read more: Australia's major sports codes are considered not-for-profits – is it time for them to pay up?

There was a seismic change in Australian sports’ ownership structure in 2021 when private equity firm

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