Introduction to Global Sport Group’s Investment
The sports car backed by CVC Capital Partners, the former owner of Formula 1 motorsports, is close to closing a $300 million deal to acquire a majority stake in Equine Network, a US-based equestrian league. Global Sport Group (GSG), which owns stakes in assets including women’s professional tennis and Six Nations rugby, is planning its first investment in a new league since the company was founded.
Details of the Deal
Sports industry sources said the deal could be finalized and announced in the coming days. Equine Network hosts equestrian competitions ranging from team roping rodeo events to show jumping competitions and has benefited from growing interest from viewers and participants in the American market. The company, which was built up over several years, now includes 40 owned and operated competitions as well as more than 800 events run by third parties.
Revenue and Growth
A significant portion of Equine Network’s competition revenue is expected to be awarded as prize money to participants, with some tournaments’ prize money reaching tens of millions of dollars. GSG’s investment in Equine Network will increase the vehicle’s presence in the US and add a profitable and fast-growing league to its portfolio.
GSG’s Strategy and Plans
A source said the deal would underpin GSG’s model of leveraging its network of sports industry executives to support investments in technology infrastructure, increase fan engagement, and improve commercial opportunities in areas such as sponsorships and data services. The deal comes as CVC-backed GSG prepares to raise billions of dollars in new debt and equity financing to become a global sports company.
Future Plans and Investments
GSG also owns interests in Premiership Rugby, the top divisions of French and Spanish football, and international volleyball. The new war chest aims to acquire a number of additional sports assets with significant commercial growth prospects. Following completion of the transaction, CVC will remain invested in its sports portfolio for a longer period of time, while paving the way for the sale of a minority stake in GSG or a future IPO on a major international stock exchange.
CVC’s Support for Global Sports Properties
CVC’s support of global sports properties is intended to enable the company to maximize their commercial potential through new media deals and sponsorship rights, as well as their expansion into new formats aimed at attracting broader audiences amid rapid changes in media consumption. Despite the new umbrella holding company, the sporting assets remain autonomous and independent of each other.
Expected Benefits and Future Opportunities
An expected benefit of the GSG approach would be to open up new investment opportunities, with CVC potentially interested in acquiring additional elite tennis tournaments. 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.
