A division of Blackrock, the world’s biggest asset manager, is in talks to provide hundreds of millions of pounds of funding to a company which owns stakes in Six Nations Rugby and the women’s professional tennis tour.
Sky News has learnt that HPS, the global private credit giant, is among the parties negotiating with CVC Capital Partners over the financing of its Global Sports Group (GSG) holding company.
The talks, which are not exclusive, would see HPS help provide firepower for the CVC-backed vehicle to make further acquisitions to expand its portfolio.
Chaired by Marc Allera, the former BT Group consumer boss, GSG holds stakes in Premiership Rugby, the top flights of French and Spanish football and the international volleyball tour.
In recent weeks, Mr Allera has outlined his ambitions to acquire further global sports properties.
HPS, which was acquired by Blackrock for $12bn late last year, is said to be serious about becoming involved in GSG.
Other parties with whom CVC is in discussions include Ares Management, which is interested in providing both debt and equity to GSG, according to insiders.
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Any new financing package was expected to be secured on favourable terms for the CVC-controlled group because of the underlying credit quality of the assets in the portfolio.
Sky News revealed during the summer that CVC had engaged a trio of banks to explore plans for a refinancing of what was at the time referred to internally as SportsCo and which has since been renamed Global Sport Group.
The portfolio also includes an Indian Premier League cricket franchise, several of which are currently exploring sales at valuations of well over $1bn.
Goldman Sachs, PJT Partners and Raine Group are advising on the refinancing of GSG, which has been set up to optimise CVC’s investments in the sector.
The deal is expected to allow CVC to remain invested in its sports portfolio for longer, while also paving the way for the sale of a minority stake in SportsCo or a future initial public offering.
Having made billions of dollars from its ownership of Formula One motor racing – one of the most lucrative deals in the history of sport – CVC has bought stakes in leagues and other assets spanning a spectrum of elite sporting assets over the last two decades.
Its investment in the media rights to La Liga – Spain’s equivalent of the Premier League – is expected to generate a handsome return for the firm, although a comparable deal in France has faced significant challenges amid broadcasters’ financial challenges in the country.
CVC’s backing of global sports properties is intended to position it to maximise their commercial potential through new media and sponsorship rights deals, as well as their expansion into new formats aimed at drawing wider audiences amid rapid shifts in media consumption.
In rugby union, its acquisition of a stake in Premiership Rugby’s commercial rights was hit by the pandemic and the subsequent financial pressures on clubs which saw a number of the league’s teams forced into insolvency.
CVC, which bought into Premiership Rugby in 2019, owns a 27% stake in the league.
Its sporting assets will continue to remain autonomous and independent of one another, despite the new umbrella holding entity.
One expected benefit of the SportsCo approach would be the sourcing of new investment opportunities, with CVC being linked to a bid for one of the new European NBA basketball franchises which is expected to be sold in the coming months.
Global sports properties have become one of the hottest growth areas for private capital in recent years, with firms such as Ares, Silver Lake Partners and Bridgepoint all investing substantial sums in teams, leagues and other assets across the industry.
CVC and Blackrock declined to comment.
