CVC and Advent team up in €1.3bn bid for Italy’s Serie A
Private equity firms CVC Capital Partners and Advent International have reportedly joined forces in a €1.3bn (£1.17bn) offer for a minority stake in Italy’s Serie A football league.
Last month Lega Serie A, the governing body of the league, placed a cap of 15 per cent on any potential private equity investment. CVC and Advent will now join forces in an offer for 10 per cent of a new company that would control the league’s media rights, according to the Financial Times.
More than half of Serie A revenues come from broadcasting, but it lags behind the Premier League, La Liga in Spain and Germany’s Bundesliga.
The two buyout firms had previously made separate bids but are now working with Italian investment fund Fondo FSI in a bid that values the league at €13bn (£11.68bn), according to the FT.
The two firms must win over 14 of Serie A’s 20 clubs to set up a new company with private equity backing to oversee broadcast rights. If that goes through, 15 clubs must then vote in favour of their offer over rivals.
Several clubs are said to be sceptical about the prospect of handing over control to private equity. Instead they favour setting up a company funded through a debt deal, which would allow them to remain in control of commercial matters.
Under the joint bid, CVC would own half of the stake, Advent with 40 per cent and FSI the remainder, according to the FT.
The buyout firms face competition from Bain Capital, which has also reportedly submitted a bid for a stake. Apollo, Fortress and Blackstone’s credit arm GSO are also said to have made offers, according to Reuters reports last month.
CVC has a long history in sports dealmaking, including Formula One, MotoGP and England’s Premiership Rugby. Last year it held talks with Fifa and Real Madrid last December over funding new global competitions but plans have stalled.
CVC Capital Partners, Bain Capital and Fondo FSI did not immediately respond to requests for comment.
Advent declined to comment.