Global Sport Group’s Ambitions

The investment vehicle, created to house a number of major sports properties, is embarking on a €2.7bn (£2.3bn) debt-raising process to fund its ambitions to become a global powerhouse. Global Sport Group (GSG), which is owned by CVC Capital Partners and counts a stake in Six Nations Rugby among its holdings, began formal discussions with investors on Monday.

Debt-Raising Process

The debt deal would give CVC significant leverage to acquire additional sports properties around the world to assemble the world’s most compelling portfolio of sports-related assets. The debt-raising process, which is being overseen by Goldman Sachs, was conducted alongside a broader series of discussions with potential equity investors for GSG.

Investors and Financiers

Sources said the latter discussions also include blue-chip investors such as Ares Management and Bain Capital. Among the debt financiers CVC works with is HPS, the global private credit giant that is a subsidiary of Blackrock, the world’s largest asset manager.

Holdings and Acquisitions

GSG also owns interests in the women’s professional tennis tour, Premiership Rugby, the top divisions of French and Spanish football, and international volleyball. The new war chest aims to acquire a number of other sports assets with significant commercial growth prospects. CVC’s only non-GSG sports asset is a stake in an Indian Premier League cricket franchise.

Future Plans

Once completed, the deal will allow CVC to remain invested in its sports portfolio for longer, while paving the way for the sale of a minority stake in GSG or a future IPO on a major international stock exchange. The investment in the media rights to La Liga – Spain’s equivalent of the Premier League – is expected to bring the company a handsome return.

Market Trends and Challenges

In rugby union, the acquisition of a stake in Premiership Rugby’s commercial rights was impacted by the pandemic and the resulting financial pressure on clubs, which resulted in several teams in the league being forced into bankruptcy. CVC, which bought into Premiership Rugby in 2019, owns a 27% stake in the league. Despite the new umbrella holding company, the sporting assets remain autonomous and independent of each other.

Growth Opportunities

An expected benefit of the GSG approach would be to open up new investment opportunities, with CVC linked to a bid for one of the new European NBA basketball franchises to be sold in the coming months. Formal discussions between the NBA and investors will begin in the coming days. Global sports real estate has emerged as one of the hottest growth areas for private capital in recent years, with firms such as Ares, Silver Lake Partners, and Bridgepoint all investing significant sums in teams, leagues, and other assets across the industry.