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Saturday, December 03, 2022

Matchroom Sport in talks with CVC, KKR and Searchlight over minority stake, says report – SportsPro

  • 25% stake sale could net Matchroom UK £175m
  • A decision on the preferred bidder is expected in the coming weeks, according to Sky News.

According to Sky News, Matchroom Sport is in talks with at least three private equity firms about the sale of a substantial minority stake in the sports promotion company.

CVC Capital Partners, KKR and Searchlight Capital are all reportedly looking to strike a deal with Matchroom. A decision on the preferred bidder is reportedly expected in the coming weeks.

According to Sky News, the investment could be worth between UK£600 million (US$739 million) and UK£700 million (US$862 million) for Essex-based Matchroom, although that figure could eventually fall outside that range.

The size of the stake being sold as well as the structure of the deal are reportedly yet to be finalised. If Matchroom participates with 25 percent at the upper end of the potential price range, it would fetch the UK £175 million (US$215 million).

Matchroom was founded by Barry Hearn and is now run by his son Eddie Hearn, and the pair reportedly have no plans to relinquish control of the company. After its launch in 1982, Matchroom initially made its mark in snooker and darts, before becoming a major player in boxing. It also has a presence in basketball, fishing, gymnastics, netball, pool, tenpin bowling and poker.

Globally, Matchroom is best known for its boxing business and has the likes of two-time heavyweight world champion Anthony Joshua on its books. In June 2021, the company announced sports streaming subscription service DAZN as the global home of matchroom boxing in a five-year deal that Athletic said was well worth nine figures. Matchroom and DAZN were already working together in the US since 2018 in a joint venture reportedly valued at US$1 billion.

If CVC acquires a stake in Matchroom, it will combine deals with LaLiga, Ligue 1, Gujarat Titans, the International Volleyball Federation (FIVB) as well as the Six Nations of Rugby Union, the Gallagher Premiership and the United Rugby Championship (previously). Will give Pro 14).

Meanwhile, KKR have been linked with investments in the Bundesliga and World Rugby. Searchlight has a history of supporting large media companies, including through a deal for Gato Investments to acquire one of its portfolio companies, Hemisphere Media Group, which targets Hispanic and Latin American audiences in the US. does.

sportspro Matchroom has been reached for comment.

Sportspro says…

private equity was predicted sportspro It is proving to be a major force in shaping the sports landscape in 2022 and hence. In the most recent high-profile deal, American firm Redbird Capital Partners acquired AC Milan for €1.2 billion (US$1.3 billion) in a deal valued at the Italian football champions.

Broadly speaking, the reported figure may highlight the continued appeal of investing in sports properties even amid fears of a matchroom slowdown. In the last two months alone, Chelsea were taken over by a Todd Boehley-led consortium for UK £4.25 billion (US$5.23 billion), while the media rights for the 2023 to 2027 cycle of the Indian Premier League (IPL) took over. 48,390 crores received. (6.2 billion US dollars).

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