Latest news with #MarcAllera
Yahoo
19-07-2025
- Business
- Yahoo
Six Nations rugby courts Gulf sovereign wealth
The Six Nations Championship is being lined up for new investment as part of a multibillion-pound attempt to cash in on the global growth of sport. The private equity giant CVC Capital has called in bankers to review options for its sporting portfolio, which include stakes in Europe's top rugby competition, Spanish and French top-flight football and women's tennis. A full squad of bankers from Goldman Sachs and the boutique advisers PJT Partners and Raine Group have been called up to help package up the disparate collection of sports and examine opportunities for refinancing and more acquisitions. The collection of assets, being brought together under an umbrella company with the working title SportsCo, is also being prepared for refinancing. City sources said the plans could include the sale of minority stakes in the overall business, which is valued at more than £10bn. CVC has appointed Marc Allera, the former head of BT's consumer division, to spearhead the discussions as chairman of SportsCo. The private equity firm is said to believe its portfolio could attract investment from Gulf sovereign wealth funds or fellow heavyweight buyout specialists. It is understood that a string of meetings have been lined up in the coming months with bankers hopeful of securing investment before the end of the year. No decisions on the final financial structure of SportsCo have been made, however. Private equity in sport The moves are designed to capitalise on booming global investor interest in sport, a field in which CVC has been a private equity pioneer. The firm enjoyed major success with its investment in Formula 1, which delivered billions in profit with a sale in 2016. The gains drove CVC's confidence in further sporting ventures in rugby and football. However, the relative complexity of club ownership and governance structures in these competitions has made it harder to make the swift operational and financial improvements on which private equity typically depends to deliver returns. CVC's £1.3bn investment in a 13pc stake in France's Ligue de Football Professionnel has been particularly problematic. A seemingly lucrative television rights deal with the streaming operator Dazn descended into acrimony, and then CVC's Paris offices were raided over allegations of corruption in its investment deal. The firm denies any wrongdoing. Its sports expansion also met with bad luck. CVC's 2018 investment in English top-flight club rugby was predicated on significant increases in revenue from grounds and television rights. Those assumptions proved particularly heroic when the pandemic struck and at one stage came close to making the Premiership bankrupt. SportsCo is being designed to allow CVC to refinance its portfolio and return money to its own investors while retaining control beyond the typical five to seven-year term of private equity ownership. The new vehicle will be responsible for senior appointments in the sports leagues in which it holds stakes and could seek to co-ordinate television rights discussions in an increasingly globalised market in which the likes of Netflix and Apple are expected to play a growing role. It comes at a time when private equity firms are generally struggling to cash in on investments made under very different conditions. Some 15 years of rock-bottom interest rates after the financial crisis delivered hundreds of billions of dollars into funds as investors hunted returns. Flush with cash, buyout firms ventured into riskier businesses and paid higher prices. Now, with debt more expensive and valuations depressed, some are struggling to return cash to their investors and being forced to seek innovative ways to deliver returns. CVC declined to comment. Broaden your horizons with award-winning British journalism. Try The Telegraph free for 1 month with unlimited access to our award-winning website, exclusive app, money-saving offers and more. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Telegraph
19-07-2025
- Business
- Telegraph
Six Nations rugby courts Gulf sovereign wealth
The Six Nations Championship is being lined up for new investment as part of a multibillion-pound attempt to cash in on the global growth of sport. The private equity giant CVC Capital has called in bankers to review options for its sporting portfolio, which include stakes in Europe's top rugby competition, Spanish and French top-flight football and women's tennis. A full squad of bankers from Goldman Sachs and the boutique advisers PJT Partners and Raine Group have been called up to help package up the disparate collection of sports and examine opportunities for refinancing and more acquisitions. The collection of assets, being brought together under an umbrella company with the working title SportsCo, is also being prepared for refinancing. City sources said the plans could include the sale of minority stakes in the overall business, which is valued at more than £10bn. CVC has appointed Marc Allera, the former head of BT's consumer division, to spearhead the discussions as chief executive of SportsCo. The private equity firm is said to believe its portfolio could attract investment from Gulf sovereign wealth funds or fellow heavyweight buyout specialists. It is understood that a string of meetings have been lined up in the coming months with bankers hopeful of securing investment before the end of the year. No decisions on the final financial structure of SportsCo have been made, however. Private equity in sport The moves are designed to capitalise on booming global investor interest in sport, a field in which CVC has been a private equity pioneer. The firm enjoyed major success with its investment in Formula 1, which delivered billions in profit with a sale in 2016. The gains drove CVC's confidence in further sporting ventures in rugby and football. However, the relative complexity of club ownership and governance structures in these competitions has made it harder to make the swift operational and financial improvements on which private equity typically depends to deliver returns. CVC's £1.3bn investment in a 13pc stake in France's Ligue de Football Professionnel has been particularly problematic. A seemingly lucrative television rights deal with the streaming operator Dazn descended into acrimony, and then CVC's Paris offices were raided over allegations of corruption in its investment deal. The firm denies any wrongdoing. Its sports expansion also met with bad luck. CVC's 2018 investment in English top-flight club rugby was predicated on significant increases in revenue from grounds and television rights. Those assumptions proved particularly heroic when the pandemic struck and at one stage came close to making the Premiership bankrupt. SportsCo is being designed to allow CVC to refinance its portfolio and return money to its own investors while retaining control beyond the typical five to seven-year term of private equity ownership. The new vehicle will be responsible for senior appointments in the sports leagues in which it holds stakes and could seek to co-ordinate television rights discussions in an increasingly globalised market in which the likes of Netflix and Apple are expected to play a growing role. It comes at a time when private equity firms are generally struggling to cash in on investments made under very different conditions. Some 15 years of rock-bottom interest rates after the financial crisis delivered hundreds of billions of dollars into funds as investors hunted returns. Flush with cash, buyout firms ventured into riskier businesses and paid higher prices. Now, with debt more expensive and valuations depressed, some are struggling to return cash to their investors and being forced to seek innovative ways to deliver returns.
Yahoo
19-07-2025
- Business
- Yahoo
CVC kicks off refinancing plan for £9bn portfolio of sports assets
The owner of stakes in Six Nations and Premiership Rugby and the top flights of French and Spanish football is plotting refinancing expected to value its sports portfolio at more than £9bn. Sky News has learnt that CVC Capital Partners has hired Goldman Sachs, PJT Partners and Raine Group to advise on a deal involving SportsCo, a new entity established to optimise the buyout giant's investments in the sector. City sources said this weekend that the refinancing was likely to involve raising new debt against one of the largest private equity-owned sports portfolios in the world. CVC also owns stakes in international volleyball, the women's professional tennis tour and Indian Premier League cricket. Sources said the refinancing would enable 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. Last month, Sky News revealed that Marc Allera, the former boss of mobile phone network EE, had been recruited as chairman of SportsCo. The creation of SportsCo is aimed at providing more cohesive support to CVC's investments across the sector. 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 cricket, football, rugby union, tennis and volleyball 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. Under its stewardship, broadcast audiences and attendances have turned a corner, with total TV audiences up 40% this year - partly as a result of an increase in the number of games being shown. It recently agreed a more lucrative TV rights deal for the league. Sponsorship revenues are also said to have nearly doubled since CVC's initial investment, with fan interest among the crucial 18-34 age demographic rising by 30% during the last year. Its SportsCo strategy will see Mr Allera, who also chaired BT Sport, working across the CVC sports portfolio, with other executives expected to be recruited to assist the effort in due course. One source last month likened the initiative to the approach employed by the luxury goods conglomerate LVMH. They added that there would be parallels with the sharing of best practice used at US basketball's NBA through its TeamBusinessOperations (TeamBO) unit to unlock collective opportunities and drive further long-term growth projects. CVC's sporting assets will continue to remain autonomous and independent of one another. One expected benefit of the SportsCo approach would be the sourcing of new investment opportunities in future years, with another likely to mean CVC remaining a stakeholder in its existing portfolio for a longer duration. SportsCo could be used as an acquisition vehicle for future CVC deals in the industry. The firm was recently outbid in an auction of major tennis tournaments by Ari Emanuel, the Endeavor founder whose company was also the seller of the assets. Global sports properties have become one of the hottest growth areas for private capital in recent years, with firms such as Ares Management, Silver Lake Partners and Bridgepoint all investing substantial sums in teams, leagues and other assets across the industry. CVC could not be reached for comment on Saturday.
Sky News
19-07-2025
- Business
- Sky News
CVC kicks off refinancing plan for £9bn portfolio of sports assets
The owner of stakes in Six Nations and Premiership Rugby and the top flights of French and Spanish football is plotting refinancing expected to value its sports portfolio at more than £9bn. Sky News has learnt that CVC Capital Partners has hired Goldman Sachs, PJT Partners and Raine Group to advise on a deal involving SportsCo, a new entity established to optimise the buyout giant's investments in the sector. City sources said this weekend that the refinancing was likely to involve raising new debt against one of the largest private equity-owned sports portfolios in the world. CVC also owns stakes in international volleyball, the women's professional tennis tour and Indian Premier League cricket. Sources said the refinancing would enable 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. Last month, Sky News revealed that Marc Allera, the former boss of mobile phone network EE, had been recruited as chairman of SportsCo. The creation of SportsCo is aimed at providing more cohesive support to CVC's investments across the sector. 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 cricket, football, rugby union, tennis and volleyball 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. Under its stewardship, broadcast audiences and attendances have turned a corner, with total TV audiences up 40% this year - partly as a result of an increase in the number of games being shown. It recently agreed a more lucrative TV rights deal for the league. Sponsorship revenues are also said to have nearly doubled since CVC's initial investment, with fan interest among the crucial 18-34 age demographic rising by 30% during the last year. Its SportsCo strategy will see Mr Allera, who also chaired BT Sport, working across the CVC sports portfolio, with other executives expected to be recruited to assist the effort in due course. One source last month likened the initiative to the approach employed by the luxury goods conglomerate LVMH. They added that there would be parallels with the sharing of best practice used at US basketball's NBA through its TeamBusinessOperations (TeamBO) unit to unlock collective opportunities and drive further long-term growth projects. CVC's sporting assets will continue to remain autonomous and independent of one another. One expected benefit of the SportsCo approach would be the sourcing of new investment opportunities in future years, with another likely to mean CVC remaining a stakeholder in its existing portfolio for a longer duration. SportsCo could be used as an acquisition vehicle for future CVC deals in the industry. The firm was recently outbid in an auction of major tennis tournaments by Ari Emanuel, the Endeavor founder whose company was also the seller of the assets. Global sports properties have become one of the hottest growth areas for private capital in recent years, with firms such as Ares Management, Silver Lake Partners and Bridgepoint all investing substantial sums in teams, leagues and other assets across the industry.
Yahoo
25-06-2025
- Business
- Yahoo
Former EE chief Allera joins team at CVC sports empire
The former boss of mobile phone network EE is taking on a powerful new role at the heart of a sports portfolio which includes interests in Six Nations Rugby, Spanish top-flight football and the women's global tennis tour. Sky News has learnt that Marc Allera, who stepped down as the boss of BT Group's consumer business earlier this year, has been appointed chairman of CVC SportsCo, a new entity aimed at providing more cohesive support to the buyout firm CVC Capital Partners' investments across the sector. The establishment of the new operating and investment group concept comes as CVC, the Amsterdam-listed private equity group, continues to diversify its sporting asset base. Money latest: 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 cricket, football, rugby union, tennis and volleyball 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. Sky News revealed earlier this year that CVC had extended further support to Newcastle Falcons as part of a broader financial package aimed at paving the way for the team's sale. Red Bull is reported to be the acquirer of Newcastle Falcons, with a deal expected imminently. CVC, which bought into Premiership Rugby in 2019, owns a 27% stake in the league. Under its stewardship, broadcast audiences and attendances have turned a corner, with total TV audiences up 40% this year - partly as a result of an increase in the number of games being shown. It recently agreed a more lucrative TV rights deal for the league. Sponsorship revenues are also said to have nearly doubled since CVC's initial investment, with fan interest among the crucial 18-34 age demographic rising by 30% during the last year. Its SportsCo strategy will see Mr Allera, who also chaired BT Sport, working across the CVC sports portfolio, with other executives expected to be recruited to assist the effort in due course. One source likened the initiative to the approach employed by the luxury goods conglomerate LVMH. They added that there would be parallels with the sharing of best practice used at US basketball's NBA through its TeamBusinessOperations (TeamBO) unit to unlock collective opportunities and drive further long-term growth projects. CVC's sporting assets will continue to remain autonomous and independent of one another, the source said. One expected benefit of the SportsCo approach would be the sourcing of new investment opportunities in future years, with another likely to mean CVC remaining a stakeholder in its existing portfolio for a longer duration. The firm was recently outbid in an auction of major tennis tournaments by Ari Emanuel, the Endeavor founder whose company was also the seller of the assets. Global sports properties have become one of the hottest growth areas for private capital in recent years, with firms such as Ares Management, Silver Lake Partners and Bridgepoint all investing substantial sums in teams, leagues and other assets across the industry. Mr Allera already has connections to CVC as chairman of JagEx, the mobile gaming business it bought last year, and as a broader adviser to the private equity firm. He spent nine years running BT's consumer arm following its acquisition of EE. CVC declined to comment on Wednesday.
