Global Sports Group seeks global expansion as private equity interest rises in sport

Global Sports Group the largest private equity sports business in the world is intensifying its efforts to expand revenue outside Europe as it considers new investments. Established in September to hold sports assets for CVC one of the worlds leading private equity firms Global Sports Group is now in discussions regarding stakes in sports leagues across multiple continents with a particular focus on North America.

The investment vehicle currently holds stakes ranging from 10 per cent to 30 per cent in seven entities across four sports including the Six Nations Rugby Womens Tennis Association and Spanish footballs La Liga. The group is chaired by Marc Allera former chief executive of BTs EE. Allera has stated that their investment criteria seek high quality premium assets with the potential to expand their intellectual property brand and reach beyond domestic markets. He indicated that while there is a clear strategy to diversify outside Europe further investment in European leagues remains possible particularly where there is potential to attract international audiences. Interest in football in the United States is one example of untapped market growth.

Global Sports Group is currently valued at 10 billion euros and according to sources its leagues generated an estimated 3 billion to 3.5 billion euros in annual revenue last year. Allera prefers investing in leagues over individual clubs citing elevated risk arising from the threat of relegation which can destabilise revenues and long term outlooks. The group is pursuing negotiations with media and sponsorship partners as a collective to maximise income and enable cost efficiencies across its portfolio. It also plans to facilitate market entry for its sports rights into new regions while maintaining a co control governance approach that allows it to steer strategy and improve oversight.

The size of future stakes in leagues will be determined by factors such as league maturity capital requirements and the need for improved corporate governance. CVCs early foray into sports investment paved the way for a wave of private equity and wealthy investor activity in the sector. Other major players have followed suit, with Apollo Global Management establishing a 5 billion dollar sports investment entity earlier this year, marking the first allocation of permanent capital to this growing area.

Allera also observes significant developments in sports broadcasting, with global streaming companies becoming increasingly active. The recent sale of Uefa Champions League media rights in the UK and Germany to Paramount Skydance signals a noteworthy shift in the media landscape. Sport remains a powerful asset for content providers, delivering unique reach and engagement that remains difficult to replicate elsewhere in entertainment.

Some investments have encountered setbacks. A dispute between French footballs Ligue 1 and media partner DAZN led to the early termination of their domestic rights deal, forcing Ligue 1 to broadcast direct to consumers. In English Premiership Rugby the league has contracted from thirteen teams to ten following the collapse of several clubs. Despite these challenges Allera remains optimistic about its recovery, citing encouraging audience engagement and attendance figures.

The establishment of Global Sports Group provides the means for potential future public listings or stake sales although Allera insists there is no current timetable or discussion regarding these possibilities. Strategic focus remains on deal execution and operational improvement within the existing portfolio.