Key Takeaways
- • Avenue Capital is the leading contender to acquire a minority stake of roughly 10% in the vehicle holding Serie A's international media rights, for approximately €320m, implying a valuation of about €3.2bn, according to Reuters.
- • A consortium of Carlyle and Nextalia has reportedly offered about €650m for around 17%, implying a valuation of approximately €3.75bn, a higher headline valuation than Avenue's bid.
- • Avenue's proposal is gaining traction because it is a straightforward equity investment without additional protections over future cash flows, according to people familiar with the process.
- • Any transaction requires approval from at least 14 of the league's 20 clubs, and no final decision has been made; Avenue's bid is expected to receive further consideration in the coming weeks.
- • The vehicle would hold international broadcasting, sponsorship and betting rights, which generate approximately €250m annually for Serie A.
Summary
Avenue Capital, the New York-based private markets investor, has emerged as the leading contender to acquire a minority stake in the company that manages international media rights for Italy's Serie A football league, according to a Reuters report. The transaction could value the venture at €3.2bn. According to unnamed people familiar with the process, Avenue is seeking a 10% holding for €320m.
Avenue's proposal is reportedly gaining traction despite competing offers with higher headline valuations. Sources attribute this partly to the structure of Avenue's bid, which is a straightforward equity investment without additional protections over future cash flows. By contrast, a consortium of Carlyle and Nextalia has reportedly offered approximately €650m for a stake of around 17%, implying a valuation of €3.75bn.
Serie A clubs are currently reviewing the competing proposals. Avenue's bid is expected to receive further consideration in the coming weeks. Any transaction requires approval from at least 14 of the league's 20 clubs, and no final decision has been made.
The proposed investment vehicle would hold the league's international broadcasting, sponsorship and betting rights. Serie A generates approximately €250m annually from international media activities, and the league sees scope for growth as it seeks to strengthen its commercial position against rivals including the English Premier League and Spain's LaLiga.
Avenue's proposal is reportedly gaining traction despite competing offers with higher headline valuations. Sources attribute this partly to the structure of Avenue's bid, which is a straightforward equity investment without additional protections over future cash flows. By contrast, a consortium of Carlyle and Nextalia has reportedly offered approximately €650m for a stake of around 17%, implying a valuation of €3.75bn.
Serie A clubs are currently reviewing the competing proposals. Avenue's bid is expected to receive further consideration in the coming weeks. Any transaction requires approval from at least 14 of the league's 20 clubs, and no final decision has been made.
The proposed investment vehicle would hold the league's international broadcasting, sponsorship and betting rights. Serie A generates approximately €250m annually from international media activities, and the league sees scope for growth as it seeks to strengthen its commercial position against rivals including the English Premier League and Spain's LaLiga.
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