Investments of CVC Capital Partners in sports - Newspaper Kommersant No. 174 (7375) of 09/21/2022

Investments of CVC Capital Partners in sports - Newspaper Kommersant No. 174 (7375) of 09/21/2022


CVC's first major investment in the sports industry came in 1998, when the fund acquired financially struggling Dorna Sports, which owned the commercial rights to the most prestigious MotoGP series, for $70 million. Dorna CVC retained control until 2006, when, at the request of the antimonopoly structures of the European Union, it sold the company to its own management. But already for $ 500 million. The demand to part with control over Dorna was caused by the fact that in 2005 CVC agreed to purchase the commercial rights to the most prestigious auto racing series - Formula 1. The regulatory authorities considered that the concentration of two top series in one hand would give its owners the opportunity to charge monopoly high prices for broadcasting rights.

Formula 1 cost CVC $ 2 billion. Until 2016, the fund received $ 6 billion through the sale of part of the securities and deductions from the profits of Formula 1. In 2017, Formula 1 was sold to the Liberty Media fund for $ 4, 4 billion. This made the investment in racing the most successful (regardless of business area) in the history of CVC at that time.

After such a successful experience of investing in racing, CVC switched to more traditional types. From 2019 to 2021, the fund has consistently acquired stakes in three prestigious rugby championships - the Premiership Rugby (the top division of the English championship), the United Rugby Championship (an annual international club tournament) and the Six Nations Cup (an annual international tournament involving national teams). In total, CVC invested about $900 million in rugby assets.

Also in 2021, the CVC, together with the International Volleyball Federation (FIVB), established the joint venture Volleyball World, which transferred all commercial rights to the largest tournaments held under the auspices of the FIVB. In return, CVC pledged to provide an investment of $300 million. In addition, in the same 2021, CVC acquired a franchise in the Indian Premier Cricket League. The company paid $745 million for the right to create the Gujarat Titans team. Finally, at the very end of 2021, CVC reached an agreement with the Spanish football La Liga. The vast majority of the 42 teams in the top two divisions have agreed to transfer some of their media rights (just over 8%) to the CVC for the next 50 years. For this, CVC undertook to pay about $ 2 billion. True, such giants as Real and Barcelona refused the deal.

Afsati Dzhusoev



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