January 15 – Global Sport Group, the sports investment arm of CVC Capital Partners, has begun a £2.3 billion fund raising process to finance further sports acquisitions.
CVC has a broad range of sports investments including the Six Nations Rugby Union Championship, women’s professional tennis tour, Premiership Rugby, and international volleyball.
In football the group has invested in Spain’s LaLiga and in France’s Ligue de Football Professionnel (LFP). It has steered clear of investing in clubs, preferring instead to invest in media rights and longer term commercial league opportunities.
The CVC deal with LaLiga saw a €2 billion investment in exchange for 8.2% of broadcasting/sponsorship revenue for 50 years. While Real Madrid and Barcelona opposed the deal, other clubs were fully supportive. The new money has brought club stability and sustainability, and funded infrastructure projects crucial for club growth.
The investment in France’s LFP has been used to back the creation of a new, club-owned commercial body that overseesthe organisation, media rights, and marketing of France’s professional competitions.
It is not clear whether CVC and GSG have already earmarked what it the new money will be spent on, but a deeper investment in the football business is expected.
Blue-chip investors reportedly in talks about joining GSG include Ares Management and Bain Capital.
The refinance group would give CVC the opportunity to hold on to some investments for a longer period rather than have to cash out to realise value to meet their own investor criteria. It also opens the opportunity for a further minority stake to be sold in GSG and potentially a public offering with a broader base of sports properties.
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