The investment vehicle set up to house a string of prominent sports assets is launching a €2.7bn (£2.3bn) debt-raising process aimed at funding its ambitions to become a global powerhouse.
Sky News has learnt that Global Sport Group (GSG), which is owned by CVC Capital Partners and counts a stake in Six Nations Rugby among its holdings, kicked off formal talks with investors on Monday.
The debt deal would provide significant firepower for CVC to acquire other sports properties around the world as it seeks to assemble the globe’s most compelling portfolio of sports-related assets.
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Sources said the debt-raising process, which is being overseen by Goldman Sachs, was being run in parallel with a wider set of discussions involving potential providers of equity capital to GSG.
These latter conversations include blue-chip investors such as Ares Management and Bain Capital, according to sources.
Among the debt funders with which CVC is engaged are HPS, the global private credit giant which is a subsidiary of Blackrock, the world’s biggest asset manager.
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GSG also owns interests in the women’s professional tennis tour, Premiership Rugby, the top flights of French and Spanish football, and international volleyball.
Its new war chest is aimed at acquiring a series of other assets in sports with substantial commercial growth prospects.
Chaired by Marc Allera, the former BT Group consumer boss, GSG also owns a stake in an Indian Premier League cricket franchise at a time of significant investor interest in the competition.
Alongside Goldman, PJT Partners and Raine Group are advising on the GSG refinancing.
Once completed, the deal is will enable CVC to remain invested in its sports portfolio for longer, while also paving the way for the sale of a minority stake in GSG or a future initial public offering on a major international exchange.
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 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.
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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 GSG 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 will be sold in the coming months.
Formal talks between the NBA and investors will get under way in the coming days.
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 declined to comment.
