CVC to Invest as Much as $509 Million in Six Nations Rugby
(Bloomberg) -- CVC Capital Partners will pay as much as 365 million pounds ($509 million) for a stake in Six Nations Rugby, the body that oversees Europe’s main rugby tournament.
The money will be paid over a five-year period in return for a one-seventh stake in the competition. The rugby unions of England, France, Ireland, Italy, Scotland and Wales, who play in the competition, will continue to own the remainder of Six Nations Rugby.
Private equity firms are investing in sports as broadcasters compete for content to help sell subscriptions. The money managers are especially interested in leagues rather than teams because that helps diversify the risk.
Under the agreement, the rugby unions retain sole responsibility for all sporting matters as well as majority control of commercial decisions. CVC will bring its experience in sports to help grow the competition and the autumn international series, a statement on Thursday said without giving details.
The deal adds to a roster of sports investment for the private equity giant, including stakes in motor bike racing, volleyball and other rugby competitions. The firm was previously invested in Formula One auto racing.
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