Private equity giant CVC Capital Partners has formed Global Sport Group (GSG), a new division to hold its $13.6 billion of sports properties and pursue expanded opportunities in the sports world.
The European fund giant, with about €200 billion ($234 billion) in total assets under management, unveiled the new group in a presentation to investors in London Wednesday, according to two people familiar with the move who asked not to be named because they are not permitted to discuss it publicly. The formation of GSG provides a structure for sharing expertise among CVC’s seven leagues, unlocking commercial opportunities across the leagues and providing a platform to scale value creation in the sports, media and entertainment areas, according to the people.
Heading up Global Sport Group is Marc Allera. According to his LinkedIn profile, the 53-year-old British executive was hired by CVC in May after serving more than nine years as CEO of EE, a U.K. communications company that has mobile phone operations, broadband service and streaming bundling, including the Premier League and TNT Sports.
Joining GSG leadership are Michelle Wilson and George Barrios, former WWE executives and PE fund founders, who will handle brand, fan engagement and content responsibilities. Former DAZN CEO Simon Denyer will focus on media and betting, while Alkit Patel, recently the chief operating officer of CVC’s rugby holdings, will handle operations and governance.
The formation of Global Sport Group makes it the largest sports fund in private equity and signals CVC’s intention to expand its sports holdings with a long-term focus on capitalizing on global leagues and teams as new media models, mobile-first consumption and the explosion of women’s sports have put the industry at an inflection point, according to the people familiar.
CVC, which went public on the Amsterdam-based Euronext exchange last year, is one of the more established institutional investors in sports; it bought Formula 1 in the 2000s and sold it to Liberty Media in 2016 for $8 billion, quadrupling its investment. Today CVC has financial interest in Spain’s LaLiga; France’s LFP Media, the commercial arm for Ligue 1 and Ligue 2; and Six Nations Rugby, the organizer of the popular Six Nations Championship.
Along with those, CVC is part of a joint venture in WTA Ventures, to commercialize women’s tennis, and in Volleyball World, to globalize commercial operations. CVC also owns a majority of PREM Rugby, the U.K’s top-tier rugby league, as well as about 28% of United Rugby Championship. All those investments are now part of the Global Sport Group.
While CVC declined to comment, the company has been active in discussing its sports interests, which it has cited as one of its five areas of expertise. On its half-year earnings call with analysts last week, CVC offered as an example of its corporate-wide teamwork how its presence in India allowed it to win the Gujarat Titans cricket franchise, which it sold 67% of for $575 million in February. The remaining equity in the Titans is being held at CVC separately from the GSG.
The formation of Global Sport Group is also seen as a way for CVC to emphasize its commitment to the sports industry, given the sense sports investments at other private equity groups can get lost among much larger efforts in other industries. Practically, the move also probably allows CVC to provide an exit for some earlier investors as well as a vehicle to attract new money interested in seeking sports investments.
In addition to stewarding the existing sports properties, Global Sport Group is likely to seek geographic and sports expansion in its portfolio, with North America probably an obvious place to seek more opportunities. CVC is part of a consortium of funds permitted to purchase minority stakes in NFL franchises. Teams protected from relegation, like the Gujarat Titans, are particularly of interest to the firm.
Shares of CVC on the Euronext exchange ticked up more than 1% higher Wednesday, closing at €15.29. Shares were sold at €14 in its April 2024 public offering.
