In August this year, Spain’s top football league league In principle, agreed to sell 10% of his commercial business CVC Capital to approximately US$3b. For this La Liga deal, the private equity player had almost reached an agreement with Italy for a similar deal. a league in the media rights business of the league.
With over 25 offices globally, and over 23 years in the investment track record in sports, the arrival of one of the world’s leading private equity investors in IPL puts the Indian T20 league in the global spotlight and the Indian cricket team. A big shot in the hand. Cricket Administration.
In 2006, and in one of the riskiest sports investments ever, CVC Capital made an offer of US$2b (15 years ago) to buy formula One. This was at a time when many racing teams were embroiled in wage disputes and at a time when F1 founders Bernie Ecclestone The league was dominant.
By the time they exited 11 years later, Formula One had turned into one of CVC’s most profitable investments and is estimated to represent a nearly 450% return of US$4.5 billion on its initial US$1B stake.
“The way they have gone about their sports business is phenomenal. This is a huge shot for the IPL and the league is well and truly on the global stage,” said the BCCI treasurer. Arun Dhumal.
CVC has invested in Moto GP from 1998 to 2006, Premiership Rugby from 2019 to the present, United Rugby Championship from 2020 to the present, Six Nations from 2021 and Volleyball World from 2021 and has always spoken. -Term development perspective.
This is not the first time that the CVC is eyeing an IPL franchise. Few years back, PE firm was in the news, earlier Rajasthan Royals and then with Delhi Daredevils (now Delhi Capitals), for trading – deals that didn’t work.
The Mumbai-based company has been eyeing investments in India’s booming sports industry for some time, and “they were gearing up for something like this”, say those tracking developments.
IPL is a piece of pie in India’s sports landscape that everyone wants. “However, the thing is – most investments are either family-owned or backed by individuals who have their own unique brand value. There are a third type of associations that have blown hot and cold. One such investment (from CVC) One is the first of its kind. Yes, Rajasthan Royals recently struck a deal with US-based investors Redbird Capital. But nothing comes close to it,” say sources tracking this space.
The BCCI, which was desperate to show that the IPL is indeed on the verge of going to the next level, needs a shot in the arm and the industry at large has no qualms in admitting that “this is what it really is.” “.
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