SportsInvest Newsflash (by Oakwell Sports Advisory)
Stay up-to-date with sports investment trends & events worldwide
Top Stories of the Week
DFL prepares auction for equity rights stake in return to investment market
The German Football League (DFL) is once again looking to sell a stake in its future broadcast rights and is preparing a tender designed to attract investment from private equity companies.
News of the preparation of an auction allowing bidders to acquire a minority stake in a sports rights marketing subsidiary comes as Bundesliga clubs continue to weigh up an investment in the domestic and international media rights.
In May last year, clubs from the two Bundesliga divisions decided to end talks over private equity investment into a new league entity that would hold a licence to commercialise their international media and sponsorship rights for 25 years.
However, the DFL could now raise between €3bn and €4bn through its latest investment plan. Borrowing and a combination of debt and equity financing are also options on the table.
Thrill One acquired by Fiume Capital and Juggernaut Capital Partners
Thrill One Sports and Entertainment, the organizers behind action sports’ Nitro World Games, has been acquired by private investment firms Fiume Capital and Juggernaut Capital Partners. The deal is worth $300m.
Among the other investors are venture creation studio Dyrdek Machine, Ultimate Fighting Championship president Dana White and television producer Craig Piligian, with acquisition financing provided by Prudential Private Capital.
Thrill One was formed in 2020 by uniting action sports brands Nitro Circus, Nitro Rallycross (Nitro RX), Street League Skateboarding (SLS) and Thrill One Media (formerly Superjacket Productions). It had been owned by The Raine Group and Causeway Media Partners.
Barcelona seals further €300m from US group Sixth Street
FC Barcelona has secured a further investment worth more than €300m from Sixth Street, as the Catalan club moves to generate funds for its summer transfer dealings.
The deal, set to be announced as soon as Friday, will give the US investment group an additional 15% share in the club’s media rights over 25 years.
The San Francisco-based fund had already agreed a similar deal worth more than €200m for a 10% share of the financially stricken football club’s rights just three weeks earlier.
IPL owners acquire all six teams in new South Africa-based T20 league
All six teams in the new T20 league co-founded by Cricket South Africa (CSA) and pay-television broadcaster SuperSport have been acquired by Indian Premier League (IPL) franchise owners.
CSA received 29 expressions of interest from prospective owners ahead of the deadline last week. The highest bids came from the owners of the Mumbai Indians, Chennai Super Kings, Delhi Capitals, Sunrisers Hyderabad, Lucknow Super Giants and Rajasthan Royals franchises in the IPL.
CSA has reportedly received a sum of more than $150m from the franchise sale for its new T20 league.
Football
Chelsea’s new owners raise £800m of debt to overhaul operations
Chelsea’s new owners are raising roughly £800m of debt as they bid to reshape the running of the English soccer giants.
The consortium led by US billionaire Todd Boehly completed its £4.25bn takeover of the Premier League club at the end of May. The group is now looking to implement a financial plan to boost the Blues’ operations and update the Stamford Bridge stadium.
Bank of America and JPMorgan are among the banks said to be involved with the financing.
The financing arrangements consist of a roughly £300m revolving credit facility and a £500m term loan. This would eclipse the reported $650m raised by City Football Group (CFG), the owner of English soccer champions Manchester City, back in July 2021 to invest in its network of clubs.
Zhang’s liability for unpaid $225m debt raises questions over Inter Milan’s future
Inter Milan owner Steven Zhang has failed to wriggle out of $255m of outstanding debts held by Suning Xiaodian, loans that he personally guaranteed.
On July 19th the Hong Kong High Court handed down its summary judgement against Zhang, dismissing his defence that his signatures on the financial agreements were forged. The judge rejected the notion that they were forged as “contrary to inherent probabilities and common sense”.
With Zhang legally liable for the debts, questions will be again raised about the future of Inter Milan, one of the few assets Zhang has left and which if sold would enable him to repay his debt.
AC Milan €1.2bn sale stalled in US court as Elliott accused of keeping shareholders in dark
A US judge has authorised a minority investor in AC Milan to obtain documents in a legal effort to block the hedge fund Elliott Investment Management LP from completing a €1.2bn sale of the newly crowned Italian champions.
Last month Elliott agreed to sell to fellow US investment group RedBird Capital, which said it would be retaining the club’s core management – chief executive Ivan Gazidis, chief revenue officer Casper Stylsvig and technical director Paolo Maldini – and that its priority would be to “continue Milan’s journey back to the summit of world football”.
But Blue Skye Financial Partners, which said it owns 4.3% of AC Milan, accused Elliott of violating its rights by engaging in several months of “behind closed doors” talks to clinch a sale of the seven-time European champions.
Local businessman Paul Richardson says he and former Barcelona striker Maxi Lopez hope to complete a deal to buy Birmingham within the next three weeks.
The consortium were reportedly competing with former Watford owner Laurence Bassini to purchase the Blues from current owners Birmingham Sport Holdings (BSHL).
They have now been granted exclusivity.
An application has been submitted to the EFL for the prospective new owners to undertake the league's owners' and directors' test, while Lopez and Richardson are at St Andrew's on Tuesday to begin due diligence.
Everton ‘not for sale’, says owner Farhad Moshiri
Everton majority shareholder Farhad Moshiri has written a letter to the club’s fans insisting the English soccer club is not for sale.
A consortium led by former Manchester United and Chelsea chief executive Peter Kenyon, and bankrolled by US real estate tycoon Maciek Kaminski and billionaire mining and investment magnate John Thornton, was in exclusive negotiations to purchase the Toffees.
But, in a message on the club website on 14th July, Moshiri said that any new investment would only be a minority stake.
North America
WWE and Thirty Five Ventures among investors in PLL funding round
The Premier Lacrosse League has announced the completion of a Series D funding round, which includes new investment from World Wrestling Entertainment and Thirty Five Ventures, the investment company led by NBA superstar Kevin Durant and his business manager Rick Kleiman.
The financing was led by return investor The Chernin Group, with continued participation from Blue Pool Capital and Brett Jefferson Holdings. New investors also include Wheelhouse Entertainment and Pomp Investments.
The new funding will be used for increased player incentives, upgraded travel experiences, off-season programming, hiring key talent across commercial business efforts, expansion of PLL media, marketing and scripted/unscripted productions, PLL game weekend enhancement, and a robust data science and technology team.
NBA takes minority stake in 15 Seconds of Fame video startup
The National Basketball Association (NBA) has taken a minority stake in 15 Seconds of Fame (15SOF), an application that allows spectators to download clips of themselves from broadcasts of sporting events.
The company’s technology uses facial recognition software to package together the clips from broadcast or in-venue video feeds, which can then be downloaded via partner applications.
Fans can then share clips of themselves in the crowd on social media, driving awareness and deepening engagement, while also generating advertising revenue which is shared between 15SOF and its partners.
NBA takes minority QuintEvents stake in expanded partnership
The National Basketball Association (NBA) has taken a minority stake in QuintEvents as part of an expanded deal with the event solutions company.
The pact designates Charlotte-based Quint as the league’s official experiences provider and sees the creation of the NBA Experiences platform, which will create bespoke on and off-court programming.
NBA Experiences aims to offer additional access to the league through a variety of customised and immersive fan experiences at marquee events throughout the year, including All-Star weekend, the draft, Summer League and the Global Games.
Golf
Elysian Park Ventures and PGA of America form golf investment fund
Elysian Park Ventures, the private investment arm of Major League Baseball’s Los Angeles Dodgers’ ownership group, has partnered with the PGA of America to create EP Golf Ventures, a new investment partnership designed to support innovation in the golf industry.
Targeted areas of investment include coaching and training; health, wellness and performance science; hospitality; facility management; retail; and agriculture.
EP Golf Ventures has already made investments in two companies: Sportsbox AI, an artificial intelligence-powered technology company that develops coaching applications through markerless 3D motion capture; and Dryvebox, which was built to increase golf access to all through a mobile golf simulator that offers lessons, practice sessions, virtual golf and private events.
Esports
Faze Clan goes public in $725m SPAC merger
Faze Clan’s quest to go public has been completed after the esports giant completed its merger with the B. Riley Principal 150 Merger Corp (BRPM) special purpose acquisition company (SPAC).
The combined company has been renamed Faze Holdings, with shares of common stock and warrants trading on Nasdaq from 20th July. The deal values the combined entity at $725m, down from the initial $1bn valuation touted last year.
CNBC reports that Faze Clan is expected to raise nearly $60m in proceeds from the SPAC deal, with current stockholders continuing to own 77% of the company after going public.
Media
Viaplay acquires Premier Sports in £30m deal to expand UK offering
Nordic media giant Viaplay Group has made a bold move in its UK expansion plans by acquiring Premier Sports in a deal that values the pay-TV network at £30m on a cash and debt-free basis.
The acquisition from Setanta Sports came as Viaplay announced a 69% year-over-year rise in its total subscriber count in the second quarter to now top 5.55m as of 21st July, sending the company’s share price up by more than 10%.
Viaplay’s UK rollout is planned for this autumn, with a number of eye-catching acquisitions – including a big package of Uefa national team matches from 2024 and National Hockey League (NHL) rights until 2027 – already secured.
Health & Fitness
Proteus Motion’s $8.5m Series A round backed by HBSE Ventures and Acies
Fitness tech startup Proteus Motion has raised $8.5m in Series A funds as it expands access to its training equipment and develops its software offerings.
Sports tech firm Acies Investment and HBSE Ventures, the VC arm of the Philadelphia 76ers and New Jersey Devils’ parent company, led the round. Blake Griffin Enterprises, Matthew Dellavadova, and Jon Lester invested as well, bringing the company’s total fundraising to date to $17m. Previous athlete-investors include Dave Winfield and Bryson DeChambeau. A valuation was not disclosed.
Proteus’ system features an anchored arm that provides resistance in three dimensions (to track any exercise motion) and measures strength output along the way.
Fan Data
Kore Software acquires fan data management firm Sports Alliance
Kore Software has acquired fan data management and digital marketing specialist Sports Alliance to expand its service portfolio and its presence in the EMEA region.
London-based Sports Alliance helps marketing teams at sports organisations aggregate their fan data and act upon it more rapidly. More specifically, the firm uses artificial intelligence-driven (AI) insights to create multi-channel campaign and engagement ideas.
The acquisition gives Kore access to 140 new clients, expanding its global footprint, as well as providing new feature offerings and services to an existing customer base of more than 1,000 clients.
Apparel & Footwear
JD Sports and Aurelius Group enter talks on Footasylum sale
JD Sports has reportedly entered discussions to sell Footasylum to Aurelius Group, a private equity firm, following a “costly” clash with the CMA.
The group is now attempting to negotiate a sale of the brand “despite growing difficulties in obtaining financing for corporate deals”.
The nature of the order from the CMA meant that JD Sports’ status as a forced seller would “inevitably reduce the price it hoped to obtain for the chain”.
Terms of the prospective deal and its timetable were still unclear yesterday.
Italmobiliare invests in Sidi Sport, an iconic cycling and motorcycling brand
Italmobiliare continues its strategy of expanding its investment portfolio with the acquisition of SIDI Sport, an iconic brand that has been able to revolutionize the world of footwear for cycling and motorcycling.
SIDI Sport represents an Italian success story that has become a globally recognized leader in the production of cycling and motorcycling shoes, recording a turnover of almost €38m euros and EBITDA of approximately €7m in 2021.
100% of the capital of SIDI Sport Srl will be taken over by Italmobiliare against an investment of €66m.
Performance
Performance coaching platform Hintsa secures $5.1m
Hintsa, a Finland-based high-performance coaching and well-being platform, raised €5.1m from K5 Global, ex-Unilever CEO Paul Polman, and others.
Used by Formula One racing champions and Fortune 500 execs alike, Hintsa will now bring its science-backed methods to employees and health-seekers.
Optimizing health and performance, Hintsa’s platform helps elite athletes and top CEOs operate at the highest level.
Private Equity
Sixth Street makes sports splash with investments in top-tier global franchises
Sixth Street Partners is a 13-year-old global investment firm with more than $60bn in assets under management. In January 2021 it made its first investment in sports, when it bought a controlling share of Legends.
Sixth Street has since invested in the San Antonio Spurs (June 2021), Real Madrid (May 2022) and FC Barcelona (June 2022). Each of the four deals is different in nature, which is indicative of the firm’s flexible approach. But they have one thing in common—in each case, Sixth Street opted to back a premium franchise (its partners in Legends are the New York Yankees and Dallas Cowboys). A source familiar with the firm’s thinking explained that its model works best when applied to top-tier, globally relevant teams.
Because Sixth Street’s sports thesis is largely built around the idea of accelerating the transition from local, seasonal businesses into all-year, global brands, the firm has focused on investment opportunities associated with the top teams in the top leagues. The logic is simple: It believes those organizations have a much higher probability of being a global business than the bottom 25.
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