CVC Eyes Gulf Wealth with £10B ‘SportsCo’ Spanning Rugby, Football, and Tennis
10 hours ago
Private equity powerhouse CVC Capital Partners is consolidating its growing sports interests under a unified investment platform—provisionally named “SportsCo”—as it looks to attract fresh capital from Gulf sovereign wealth funds and other global investors.
Valued at over £10 billion, SportsCo will house CVC’s diverse holdings across the sports ecosystem, including stakes in Six Nations Rugby, Spanish and French football, and women’s tennis. The initiative marks a strategic pivot toward long-term ownership models, streamlining governance and commercial operations across leagues.
To explore funding opportunities and broader investment partnerships, CVC has enlisted Goldman Sachs, PJT Partners, and the Raine Group. Sources indicate that the firm may open the door to minority investments in SportsCo, providing external capital without ceding operational control.
Former BT Consumer CEO Marc Allera has been tapped as chairman of the new entity. Under his leadership, SportsCo will aim to centralize executive appointments across its portfolio and harmonize key commercial areas—especially broadcast rights and global media negotiations—amid a landscape increasingly influenced by tech disruptors like Apple and Netflix.
The creation of SportsCo also provides a strategic mechanism for refinancing and capital return to limited partners, a move that allows CVC to retain ownership beyond traditional private equity timeframes of five to seven years.
While CVC enjoyed significant returns from its previous investment in Formula 1, recent ventures have come with challenges. Its €1.3 billion injection into France’s Ligue de Football Professionnel sparked governance disputes and legal pushback. Similarly, its foray into English rugby union struggled against pandemic-driven financial pressures.
Despite these headwinds, SportsCo is CVC’s response to a shifting private equity landscape—characterized by higher borrowing costs, valuations under pressure, and a renewed focus on operational synergy across global sports assets.