Weekend Sports Recap: Latest Sports Headlines within the Private Equity Sphere
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In the world of sports, investments are heating up as businesses and individuals look to capitalize on the excitement and potential of various sports industries. Here's a roundup of some significant deals and funds that have recently been announced.
Justin Ishbia, the founder of Shore Capital Partners, has agreed to a deal worth approximately $1.8bn to acquire a controlling stake in Major League Baseball's Chicago White Sox [5]. Ishbia has already bought out a number of minority investors and will begin injecting capital into the team this year and next to help reduce debt and support operations. The deal positions Ishbia to become the majority owner of the Chicago White Sox as early as 2029, with the right to acquire Jerry Reinsdorf's majority stake if no sale is finalized by the end of the 2034 season [6].
Meanwhile, in the UK, Broadsword Investment Management has acquired a majority stake in Powerleague, the country's largest five-a-side football operator [1]. Post-transaction, Powerleague will retain its existing management team and continues to operate in the UK, managing over 250 third-party venues offering football and netball. The acquisition aims to accelerate Powerleague's growth and diversification into new sports, with plans to add padel tennis to nearly half of its sites [2].
A new fund, known as the Collegiate Investment Initiative, has been launched to provide long-term capital and strategic support to universities navigating the transition to a student-athlete revenue-sharing model [3]. This fund, which targets commercial and infrastructure investments across US college sports, was primarily associated with Georgia Tech Athletics through the "Full Steam Ahead" initiative [4]. The initiative aims to raise $500 million to fund transformative projects such as renovations to Bobby Dodd Stadium, the Zelnak Basketball Center, and O’Keefe Gymnasium, as well as other program-wide operational enhancements.
Finally, EQT is reportedly preparing a bid worth approximately £500m ($675m) to acquire WRC Promoter, the commercial rights holder of the World Rally Championship (WRC) [7]. This would mark a rare move by EQT into the global sports sector. However, the details of the deal are not specified, and it does not involve Red Bull, German investment group KW25, or JPMorgan Chase, who are associated with WRC Promoter.
These deals and funds underscore the growing interest in sports investment and the potential for significant growth in various sports industries. As more investments are made, we can expect to see even more exciting developments in the world of sports.
References: [1] [Link to Reference 1] [2] [Link to Reference 2] [3] [Link to Reference 3] [4] [Link to Reference 4] [5] [Link to Reference 5] [6] [Link to Reference 6] [7] [Link to Reference 7]
- Investors are increasingly looking to capitalize on the sports industry's excitement and potential, as evidenced by significant deals and fund announcements.
- Justin Ishbia, the founder of Shore Capital Partners, has agreed to a $1.8bn deal to acquire a controlling stake in MLB's Chicago White Sox, planning to reduce debt and support operations.
- Broadsword Investment Management has acquired a majority stake in Powerleague, the UK's largest five-a-side football operator, aiming to accelerate its growth and expand into new sports like padel tennis.
- A new fund, the Collegiate Investment Initiative, has been launched to provide long-term capital and strategic support to universities transitioning to a student-athlete revenue-sharing model.
- This fund, associated with Georgia Tech Athletics, aims to raise $500 million for transformative projects across US college sports infrastructure and operations.
- EQT is reportedly preparing a £500m ($675m) bid for WRC Promoter, the commercial rights holder of the World Rally Championship (WRC), marking a rare move into the global sports sector.
- Private equity firms are showing growing interest in sports investments, leading to potential significant growth in various sports industries.
- These investments and funds demonstrate the exciting developments we can expect to see in the world of sports as more capital is invested in the industry.
