Introduction to Global Sports Group Funding

A division of Blackrock, the world’s largest asset manager, is negotiating to provide hundreds of millions of pounds in funding to a company that owns shares in Six Nations Rugby and the women’s professional tennis tour. The company in question is Global Sports Group (GSG), a holding company backed by CVC Capital Partners.

Negotiations and Funding

HPS, the global personal lending giant, is among the parties negotiating with CVC to fund GSG. The talks, which are non-exclusive, are expected to see HPS help give the CVC-backed company the clout to make further acquisitions to expand its portfolio. Other parties CVC is in talks with include Ares Management, which is interested in providing both debt and equity capital to GSG.

Expansion and Ambitions

GSG, chaired by former BT Group consumer boss Marc Allera, has stakes in Premiership Rugby, the top divisions of French and Spanish football, and the international volleyball tour. In recent weeks, Mr. Allera has outlined his ambitions to acquire more global sports properties. HPS, which was acquired by Blackrock for $12 billion late last year, is reportedly serious about investing in GSG.

Portfolio and Assets

The portfolio of GSG includes an Indian Premier League cricket franchise, some of which are currently exploring sales worth well over $1 billion. The company was formed to optimize CVC’s investments in the sector and is advised by Goldman Sachs, PJT Partners, and Raine Group on its refinancing. The deal is expected to 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.

History and Involvement in Sports

After earning billions of dollars from its involvement in Formula One motorsports, CVC has acquired stakes in leagues and other assets across a wide range of elite sports properties over the past two decades. 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. 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.

Future Plans and Opportunities

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. Despite this, CVC remains committed to its investments in the sector. The company is linked to a bid for one of the new European NBA basketball franchises, which is expected to be sold in the coming months. 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.