SportsInvest Newsflash (by Oakwell Sports Advisory)
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Top Stories of the Week
Deltatre to be acquired by Bain Capital and Nextalia
New York-based investment and operating company Bruin Capital has agreed to sell its streaming technology provider Deltatre to Bain Capital and Nextalia SGR.
The transaction is subject to regulatory and other customary approvals. The value of the deal has not been disclosed but it is understood that it is at the upper end of the $700m to $900m range that had previously been reported.
The exact spilt between Boston-based investment firm Bain and Milan-headquartered asset management company Nextalia was also not revealed, but the former will be the majority shareholder.
Barcelona approve minority sales of LaLiga TV rights and merchandising division
Spanish soccer giants Barcelona have approved the sale of a minority stake in their licensing and merchandising division, as well as ceding up to 25% of income from their LaLiga TV rights.
Of the delegate members representing fans, 88% voted in favour of selling a 49.95% share in Barca Licensing & Merchandising (BLM). The club will retain a repurchase option.
87% of accredited members supported the move to cede up to 25% of LaLiga TV rights income to one or more investors, and or obtain financing based on the rights.
Barca said they expect to earn around €600m from the deals, which help to shore up the club’s finances, ensuring it can finish the financial year without losses and increase their spending limit.
Fanatics billionaire Michael Rubin selling 76ers and Devils stakes
Billionaire Michael Rubin is selling his nearly 10% stake of Harris Blitzer Sports & Entertainment, the parent company of the Philadelphia 76ers and New Jersey Devils.
The Fanatics CEO, who increased his stake in the company in 2020, is currently the third-largest shareholder behind Josh Harris and David Blitzer. The deal is expected to close in the coming weeks.
HBSE will likely be valued around $3bn in the transaction, which is in line with the valuation in a separate HBSE stake sale involving Arctos Sports Partners earlier this month. It’s unclear who is buying Rubin’s stake.
Football
US investor Textor closes in on majority control of Ligue 1’s Lyon
John Textor and Eagle Football Holdings is on the verge of acquiring a majority stake in French top club Olympique Lyon. The American already has stakes in Brazil’s Botafogo, Belgium’s RWD Molenbeek and England’s Crystal Palace.
On Monday, the French club confirmed that they had opened exclusive talks with Textor. The club had previously been in negotiation with US businessman Foster Gillett but with those talks stalled, the door has opened for Textor.
A takeover by Textor would mark the end of the long reign of Jean-Michel Aulas, the current owner and club president. Aulas is expected to retain a holding at the Ligue 1 giants and remain at the Groupama Stadium.
Sunderland confirm Kyril Louis-Dreyfus as new majority shareholder
Newly-promoted English second-tier soccer club Sunderland have confirmed that French businessman Kyril Louis-Dreyfus has become the team’s new majority shareholder, after increasing his holding to 51%.
Louis-Dreyfus has acquired all the shares in the Championship outfit previously held by Charlie Methven, who has now left the club, and more from Stewart Donald, whose holding is now 19%. Juan Sartori has also increased his stake to 30%.
Mike Ashley rivals Andrew Appleby group with £50m deposit ready to save Derby
Mike Ashley has ramped up his bid to buy Derby County after depositing £50m to acquire the club and Pride Park Stadium.
Ashley's group are set to inform Derby's administrators, Quantuma, that they are ready to proceed with a deal to rival former chairman Andrew Appleby and save the club from liquidation.
Ashley's lawyers, RPC, are holding £50m in preparation to complete a takeover of the stricken League One club.
The deal is understood to include the club and its assets, plus the stadium which is still owned by former chairman Mel Morris. Ashley's proposal will not include any charges for the rent of Pride Park, or take any money out of the club, including charges of interest, for the next 10 years.
Small stake in Seattle Sounders recently sold at $680m valuation
A couple of months ago a 3% to 5% stake in the Seattle Sounders was sold to an unknown buyer which valued the MLS team at $680m. The Sounders have been one of the best teams in MLS, winning the MLS Cup in 2019 and 2016. They also boast one of the most passionate fan bases in MLS, placing second in the league in attendance and Twitter followers.
The valuation for the Sounders is the fourth-highest valuation for a limited partner stake Forbes is aware of.
North America
Bill Haslam set to buy NHL’s Predators
Bill Haslam, former Tennessee governor, is set to buy the Nashville Predators of the NHL.
Herb Fritch, current Predators chairman, has agreed to sell the majority of his stake in the team to Haslam, who will begin as a minority owner in the franchise and over the next several years rise through a planned, phased transition to become the team’s majority owner. Financial details around the transaction, which still must be approved by other Predators shareholders and the NHL Board of Governors, has not been disclosed.
Haslam, Tennessee’s governor from 2011-19 and holding an estimated net worth of $2.3bn, is the brother of Jimmy Haslam, co-owner of the National Football League’s Cleveland Browns.
Cleveland Guardians’ deal to sell minority stake to David Blitzer confirmed by MLB
Major League Baseball has approved David Blitzer’s purchase of a 25% stake in the Cleveland Guardians, with the option of becoming majority owner in six years.
In February, Forbes reported that Blitzer’s deal for a 35% share in the franchise would value the Guardians at $1bn.
The Guardians have been seeking a minority owner since 2019, when John Sherman left to purchase the Kansas City Royals.
“We did approve a sale of a minority interest in the Guardians, pending the closing,” commissioner Rob Manfred said at the owners meetings in New York. “Really excited about the change there.”
Esports, Gaming, & Fantasy
Esports fantasy startup FanClash raises $40m to fund global expansion
Indian fantasy esports gaming startup FanClash is plotting global expansion after raising $40m in fresh funding.
The Series B round was led by Alpha Wave Global, with participation from Sequoia Capital India, Info Edge and Polygon, bringing the total amount raised by the company to $50.5m since it was founded two years ago.
Its game allows users to create fantasy teams comprising esports athletes across multiple disciplines and the ultimate plan is for there to be prizes that rewards fans for their fandom.
Betting
Fanatics ‘in talks’ to acquire sports betting company Tipico
Global sports merchandising company Fanatics is in talks to acquire European sports betting company Tipico as the firm looks to make significant inroads into the gambling landscape.
The two sides are supposedly at an impasse on price but talks are ongoing.
Tipico currently has small US sports betting presence, with licenses in New Jersey and Colorado, with plans to establish operations in Indiana and Iowa, and beyond, following a multistate market access partnership agreement with Caesars Entertainment.
Fanatics’ efforts quickly follow Fanatics chief executive Michael Rubin announcing he would be selling his minority stake in Harris Blitzer Sports & Entertainment to avoid potential conflicts of interest in the betting space, as well as regarding individual player licensing deals, and to comply with National Basketball Association ownership guidelines.
SIG makes $65.8m investment in PointsBet
Financial industry giant Susquehanna Investment Group has agreed to a deal in which it will invest $65.8m into Australia-based sportsbook PointsBet and become the company’s largest shareholder.
In the agreement, PointsBet will issue 38.75m shares to SIG Sports, a unit of the Pennsylvania-based SIG, at a price of A$2.43 each, representing a 15% premium compared to the five-day average on June 17. SIG as a result will own 12.8% of PointsBet, a larger percentage than any other shareholder.
In addition to its home country, PointsBet is also operational in the United States, Canada, and Ireland, and in the US has a large-scale agreement with NBCUniversal making it the official sports betting partner of NBC Sports.
Sports Gambling Guides raises $2m with Astralis Capital among investors
Sports Gambling Guides, which represents nearly 1,000 social media content creators and influencers, has gained $2m in funding as online gaming continues to be legalized nationwide.
Astralis Capital, a venture capital firm known for backing companies in the digital gaming space, was among the top investors through its betting-focused Astralis Fund I LP. Considering Sports Gambling Guides is licensed in every legal on-line wagering state—with more states expected to legalize digital gambling soon—the funding will help it expand its reach.
Sports Gambling Guides has gained notoriety as a top Instagram and Twitter gambling account. Birthed in 2020 by father and son founders, the company’s content creators have an aggregate audience of more than 22m followers.
Arctos, Kraft, and Rubin among heavy hitters in $35m Jackpot raise
Online lottery platform Jackpot has raised $35m from a powerful list of sports owners, athletes and investors.
The Series A was co-led by Courtside Ventures, the VC fund backed by Cleveland Cavaliers owner Dan Gilbert; and by Accomplice, an early DraftKings investor. Others in the round include Fanatics CEO Michael Rubin, Arctos Sports Partners, the Kraft Group, DraftKings CEO Jason Robins, Sapphire Sport, NBA stars James Harden and Joel Embiid, and groups connected to the owners of the Cleveland Browns and Los Angeles Dodgers.
Jackpot is hoping to capitalize on a U.S. lottery market estimated to be $100bn—far bigger than the market for sports betting or live event ticketing—but currently conducted almost entirely via physical stores. Last year 53% of Americans purchased lottery tickets, the company says, with online sales representing roughly 5% of those transactions.
Performance, Health, & Fitness
NOWATCH raises $8.7m for its stress-sensing wearable
Dutch healthtech company NOWATCH closed $8.7m in Series A funding for its stress-predicting wearable, set to launch this fall.
Using electrodermal activity sensors developed with Philips, its wrist-worn wearable reads cortisol levels on the skin in real time. The device also tracks breathing and heart rate, temperature, SPO2, and movement, as well as sleep activity.
Dubbed an “awareable,” its algorithmic software uses machine learning to generate an up-to-the-minute “state of being” report—determining whether you’re overstimulated, balanced, or understimulated—using your body’s sensory data inputs.
Media & Production
Buzzer cuts jobs as it seeks to raise $20m in fresh funding
Mobile-centric live sports streaming platform Buzzer has reduced its workforce by a fifth as it seeks to raise $20m in additional funding to continue its expansion.
Chief executive Bo Han confirmed the lay-offs, suggesting the move was necessary given wider economic conditions and the need to maximise its resources.
Since launching last year Buzzer has secured deals with the National Basketball Association (NBA), Women’s National Basketball Association (WNBA), the PGA Tour and the National Hockey League (NHL), allowing users to access content either via an existing subscription or through micropayments.
Staige receives $8.9m investment from Dortmund
Staige, an automated video production company, has received a significant investment from Bundesliga club Borussia Dortmund and signed a partnership with Spanish youth soccer streaming platform Footters.
Originally founded as Soccerwatch in 2017, Staige uses AI-powered cameras to record and stream live sports and offers an integrated coaching tool for post-match analysis. Dortmund invested €8.5 earlier this month.
Aser Ventures invests in Sponix Tech, an AI-powered sports broadcasting software startup
Aser Ventures has invested in Sponix Tech, an AI-powered sports broadcasting software startup based in Doha, Qatar. Broadcast cameras can leverage Sponix’s computer vision software to create immersive replays from the perspective of on-field players during matches.
Qatari broadcaster beIn Sports has used Sponix during soccer broadcasts. The startup also partnered with UEFA to share Champions League player’s view highlights to UEFA.TV and on social media. Networks and sponsors can also use Sponix’s software to add virtual ad placements to broadcasts.
Athlete Investors
Athlete investors on rise as brands embrace new ways to partner with sport stars
When Anthony Joshua and Dazn announced a new partnership last week, it involved the British heavyweight boxer acquiring a stake in the sports streaming platform.
From passion projects such as vegan footballer Chris Smalling’s investment into health foods to Andy Murray’s backing of dozens of start-ups and the multi-million-dollar funds established by US sports stars such as LeBron James and Serena Wiliams, an entrepreneurial sideline of some kind has become almost ubiquitous among big-name players.
While some of these examples involve sportspeople investing their own money or even setting up their own business, they often involve some degree of endorsement too, as in the case of Joshua and Dazn.
And in many cases the endorsement is in exchange for equity or discounted shares, particularly in start-ups or early-stage companies, blurring the lines between investment and sponsorship.
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