CVC Capital Partners to Refinance $12 Billion Sports Portfolio with Goldman Sachs, PJT Partners, and Raine Group.

CVC Capital Partners is refinancing its £9bn ($12bn) sports assets portfolio, hiring Goldman Sachs, PJT Partners, and The Raine Group to advise. The move could involve raising new debt and may also lead to an initial public offering. CVC holds stakes in various sports leagues and tours, including Six Nations, Premiership Rugby, and the Indian Premier League.

CVC Capital Partners is set to refinance its £9bn ($12bn) sports assets portfolio, hiring Goldman Sachs, PJT Partners, and The Raine Group to advise on the process. The move could involve raising new debt and may also lead to an initial public offering (IPO). CVC holds stakes in various sports leagues and tours, including the Six Nations Championship, Premiership Rugby, and the Indian Premier League.

The private equity giant has assembled a team of bankers from Goldman Sachs, PJT Partners, and The Raine Group to help package its diverse sports portfolio under an umbrella company called SportsCo. The goal is to explore opportunities for refinancing and potential acquisitions. The portfolio, valued at over £10bn, is being prepared for a possible sale of minority stakes, which could attract investment from Gulf sovereign wealth funds or fellow private equity firms.

The decision to refinance comes as part of a broader strategy to capitalize on the global growth of sport. CVC has been a pioneer in private equity investments in sports, with its investment in Formula 1 delivering billions in profit. However, the complexity of club ownership and governance structures in competitions like rugby and football has posed challenges. For instance, CVC's £1.3bn investment in France's Ligue de Football Professionnel faced setbacks due to a contentious television rights deal with Dazn and allegations of corruption.

Despite these challenges, CVC remains optimistic about the potential of its sports portfolio. The firm's move to refinance its assets is part of a broader trend in the sports industry, where valuations have surged to record levels. According to JPMorgan Chase, valuations for major sports teams have jumped by more than 1000% in the past 25 years, driven by factors such as scarcity and high demand from wealthy investors.

CVC's efforts to refinance its sports portfolio are being led by Marc Allera, who was appointed as the chief executive of SportsCo. The firm is expected to hold meetings with potential investors in the coming months, with a view to securing investment before the end of the year. No final decisions on the financial structure of SportsCo have been made yet.

References:
[1] https://uk.finance.yahoo.com/news/six-nations-rugby-courts-gulf-124716082.html
[2] https://www.aol.com/finance/elite-jp-morgan-unit-driving-100000166.html