Private investors are increasingly betting on sports, drawn by a combination of rising valuations and expanded market opportunity. It is no longer just the team that draws investors’ interest, but the multiplying effect of business opportunities around the sport, the team and the players. Law firm Sidley Austin has advised investors involved in a number of marquis sports transactions. They include the acquisition of the National Football League’s Washington Commanders by a group led by private-equity titan Josh Harris and a separate acquisition of the National Basketball Association’s Charlotte Hornets by a group led by Gabe Plotkin, founder of former hedge-fund manager Melvin Capital Management, and Rick Schnall, co-president of private-equity firm Clayton, Dubilier & Rice.

WSJ Pro Private Equity discussed the changing investment environment with Charles H. Baker and Irwin P. Raij, who co-chair Sidley Austin’s entertainment, sports and media industry group. Responses have been edited for length and clarity.