CVC, the investment fund that focuses on sport

The CVC investment fund is putting on its crampons and putting a foot on the ball in Spain. La Liga announced on Wednesday that it had sold % of its capital to the investment fund based in Luxembourg for 2.7 billion euros . The Spanish football league has agreed to the creation of a new entity to house its business activities, such as “sponsorship” contracts and income from matches, in which CVC will take a stake.

After Formula 1, rugby and volleyball, it is therefore on football that the investment fund has decided to bet. And even though sports represent only a small portion of the 30 billions of dollars in assets under management claimed by CVC, the fund continues to grow. ” extend its list of sports assets.

Formula 1 In its investment strategy, CVC is interested in mainly to competition organizers. A pioneer in venture capital funds focusing on sport, CVC had invested in 115 nearly $ 1 billion to manage the commercial rights of the Formula 1.

A first winning investment with a resale of its participation in two stages, first in 2012 to the Waddell & Read, BlackRock and Norges funds for an estimated sum of around $ 2 billion. Then the rest to the American group Liberty Media for at least $ 3 billion. As a private equity fund, it invests in companies that are not listed on the stock exchange to accelerate their development before reselling. its shares.

Commercial rights Since then, CVC has turned in particular to rugby: it has invested in 2019 in the Premiership, the English professional league he owns 14%, or in 2020 with 27% of the Pro 10, which brings together Irish, Scottish, Welsh, Italian and South African teams.

The fund is also in advanced negotiations to buy part of the commercial rights to the 6 Nations Tournament, as well as with the Australian Rugby Federation.

In 2021, CVC has also created a joint company with the international volleyball federation the. And before closing its deal with La Liga, it was in Italian football that CVC was close to investing. An agreement in principle between Series A and private investment funds CVC, Advent and FSI for the management of TV rights in exchange for 1.7 billion euros was unanimously approved in November. But several clubs, including Juventus and Napoli, are no longer in favor and the negotiations are slipping.

CVC is not, however, alone in taking an interest in professional leagues: in Germany, the The Bundesliga is thus courted by more than ten international funds, ready to take 28% of a company marketing non-domestic TV rights .

Digital entertainment The investment project in Italy was the same as in Spain: accelerate the transition from the organization towards “a global digital entertainment company”. The idea is to support the Spanish league in diversifying its income, in particular by developing sponsorship and marketing. The advent of streaming also represents the opportunity to take advantage of a redistribution of broadcasting revenues.

With AFP