SportsInvest Newsflash (by Oakwell Sports Advisory)
Stay up-to-date with sports investment trends & events worldwide
Top Stories of the Week
Castore valued at £750m after latest funding round
Castore has raised £50m in a move the UK sportswear brand says values it at £750m.
The secured revolving credit facility (RCF) has an initial maturity of three years and involves the banks HSBC, BNP Paribas and Silicon Valley Bank.
Castore has the ability to extend the facility by an additional year and increase the RCF to £75m.
The world’s 50 most valuable sports teams 2022
The world’s 50 most valuable sports teams are worth a combined $222.7bn, 30% more than a year ago, the biggest increase in five years.
The NFL continues its dominance, with 30 of its 32 teams in the top 50, making up 60% of the list. The last time the NFL was represented by at least 30 teams was 2014. Last year, it had 26.
In 2013, the league had a record 32 teams in the top 50. But back then, the top three on the list were soccer teams: Real Madrid, Manchester United and Barcelona. This year, the NFL has six of the top ten and 13 of the top 20 teams on our list. The main reason for the NFL’s success: the richest media deal in sports, worth $112bn through 2032.
The most valuable team is the NFL’s Dallas Cowboys, who are worth $8bn and have held the top spot since 2016. Rounding out the top five are the New England Patriots ($6.4bn), the Los Angeles Rams ($6.2bn) and the New York Yankees and New York Giants, both valued at $6bn.
Football
LaLiga targets €3bn windfall from Galaxy Racer JV
LaLiga has signed a 15-year agreement with Dubai-based esports and gaming organisation Galaxy Racer (GXR) in a move designed to grow the Spanish soccer league’s appeal with young audiences.
The deal is exclusively focused on the Middle East and North Africa (MENA) region and Indian subcontinent, with the joint venture (JV) designating GXR as LaLiga’s local partner in the two markets.
GXR and LaLiga will each hold a 50% stake in the JV, which is projected to yield over €3bn in revenue.
Sampdoria takeover: SPAC linked with Pacific Media Group ‘joins race’
An American special purpose acquisition company (SPAC) connected to the Pacific Media Group has joined the race to buy Sampdoria.
The Pacific Media Group, which owns stakes in a number of European teams, reportedly approached another Serie A club, Verona, in July.
It is understood that the SPAC is one of three potential buyers still in the running to acquire Sampdoria, alongside another American group, as well as a consortium of investors from the Persian Gulf represented by the film entrepreneur Francesco Di Silvio.
The identity of the other American group remains unclear, and Sampdoria are said to want maximum confidentiality on the names of potential buyers.
US investors eye cost controls to boost value of European club acquisitions
US investors often talk up their ability to find efficiencies and increase revenues in football. But one source points out that few have significantly increased the value of their club and at the same time secured on-pitch success. They suggest Liverpool, taken over by Fenway Sports Group in 2010 for £300m and today worth £3.6bn, according to Forbes, is one successful example.
With values on the rise how do investors expect to make a healthy return in football?
US investors are likely to lobby for the sorts of financial controls present in US sport, like a salary cap
While that may be the aim of US investors, one source agrees it would "not be easy" to implement, given the "diversity of thought" in the Premier League, for example.
Motorsport
Porsche calls off Red Bull F1 entry plans for 2026
Following the Volkswagen Group’s approval for Porsche to enter F1, the German manufacturer held talks with Red Bull about a potential partnership from 2026.
But regular delays amid uncertainty from Red Bull about Porsche’s bid to take a 50% share in the team have ultimately led to negotiations coming to an end.
Porsche confirmed on Friday ahead of the Italian Grand Prix that these talks had ended and that no partnership with Red Bull would be pursued.
Betting
LiveScore Group nets £50m expansion boost from Ringier
LiveScore Group, the sports scores and betting company, has announced a £50m investment from Ringier, the Swiss media group with interests in sport.
The deal, described by the pair as a “landmark strategic partnership,” values LiveScore Group at £500m.
The injection of funds will be used to accelerate the expansion of LiveScore Group, which owns the LiveScore result platform and the LiveScore Bet and Virgin Bet wagering platforms.
Sports betting tech provider Betegy closes investment round
The venture capital firm Yolo Investments Ltd has made an investment of several million Euros in Betegy, which is a supplier of automated marketing technology for the iGaming and sports betting industry.
Betegy’s specialized AI-powered service is a marketing technology provider to the likes of ESPN, Ringier Axel Springer, Bwin, Yahoo Sports, Sportsbet.io, 22bet, Parimatch, PokerGo, ShotTracker and Winners.net.
Yolo Investments was founded by entrepreneur Tim Heath. The Tallinn, Estonia-based firm holds investments in more than 80 companies in the gaming, fintech and emerging technologies industries with total assets under management of €375m.
Esports
Tencent increases Ubisoft stake in a $297m deal
French video game company Ubisoft announced that Tencent increased its shareholding stake in the company.
The Chinese conglomerate indirectly increased its stake in Ubisoft through the acquisition of a passive minority stake in Guillemot Brothers Limited for $297m.
Guillemot Brothers Limited is controlled by the Guillemot family, which founded Ubisoft and is the largest shareholder in the company. The move comes amid rumors that Ubisoft is an acquisition target for larger companies, along with China cracking down on gaming and esports revenue declining in that nation.
Saudi National Development Fund to invest $80m in gaming and e-sports
The Saudi National Development Fund (NDF) is adopting a program to finance gaming and e-sports sector with $80m. The Fund will enhance KSA’s position in these sectors while realising the goals of Saudi Vision 2030.
The Gaming and E-sports Sector Financing Program, which was approved by NDF, in cooperation with the Saudi Esports Federation and Digital Content Program “Ignite”, aims to provide products and funding solutions through development funds, NDF affiliated banks as well as private financial institutions.
Venture Capital
Venturerock establishes new $75m sports tech investment fund
Venture capital firm Venturerock has launched a new $75m fund that will look to invest in sports technology startups.
The fund’s backers include former Dutch international soccer player Mark van Bommel and former National Football League (NFL) cornerback Bryson Keeton, with Venturerock’s successful investments in digital startups in other sectors such as fintech, healthtech, as well as smart cities.
It has so far worked with more than 700 startups, helping them prepare for their series A funding rounds.
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