Private equity’s £42bn sports binge
PRIVATE equity firms are ploughing cash into professional sport at an unprecedented pace, cashing in on lucrative media rights and the need of governing bodies for capital after the pandemic.
They pumped £42bn into sports investments globally in 2021, according to figures compiled by Pitchbook, with £18.1bn flowing into Europe alone.
High-profile deals involving private equity include CVC Capital Partners’ investments in Premiership Rugby and rugby union tournaments Pro14 and the Six Nations, and Silverlake’s purchase of a minority stake in the New Zealand All Blacks.
Private equity cash has been a lifeline for some leagues and organisations where gate money and TV rights have dried up, but profit-driven motives haven’t always found popularity with teams.
In February Spanish football chiefs joined Real Madrid, Barcelona and Athletic Bilbao in legal action seeking to annul the sale of a stake in the top league, La Liga, to CVC.
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2022-08-13T07:00:00.0000000Z
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