Key Takeaways
- • Avenue Capital has emerged as the leading bidder for a minority stake in the company that will hold Serie A's international media, sponsorship and betting rights, according to two people with knowledge of the matter cited by Reuters.
- • Avenue is targeting a 10% stake for €320 million, implying an overall valuation of about €3.2 billion for the venture.
- • A joint bid from Carlyle and Nextalia reportedly offered around €650 million for roughly 17%, valuing the venture at about €3.75 billion, but Avenue's common equity structure is favored over the structured protections sought by rivals.
- • Any deal requires backing from at least 14 of the league's 20 clubs, and no final decision has been made; the bids will be examined further in the coming weeks.
Summary
Private equity firm Avenue Capital has emerged as the leading bidder for a minority stake in the company that will hold the international media rights of Italy's top soccer league, Serie A, two people with knowledge of the matter told Reuters. The New York-based firm is targeting a 10% stake for €320 million, which would value the overall venture at €3.2 billion.
Serie A is exploring the sale of a stake in the company, which will hold its international broadcasting, sponsorship and betting rights. The league received final bids from private equity firms last month. Serie A clubs met on Friday for an initial review of the bids, according to the sources.
Avenue is ahead despite some rival bidders offering more, because its offer is structured as a common equity investment without the protections on future cash flows sought by some competitors, one of the sources said. Carlyle and Nextalia, which submitted a joint bid, reportedly offered around €650 million for a stake of roughly 17%, valuing the venture at about €3.75 billion.
Avenue Capital and Serie A declined to comment, and Carlyle and Nextalia were not immediately available. The clubs will examine the Avenue offer more closely in the coming weeks, and the sources cautioned that no final decision has been made. Any deal requires the backing of at least 14 of the league's 20 clubs.
The context for the sale is a league that has struggled in recent years to sell its media rights abroad, as broadcaster interest has dwindled amid a crowded fixture list dominated by the expanded UEFA Champions League and the popularity of the English Premier League. According to UEFA data cited by Reuters, the Serie A international media unit generates sales of around €250 million a year, a fraction of those yielded by the Premier League and Spain's LaLiga.
Serie A is exploring the sale of a stake in the company, which will hold its international broadcasting, sponsorship and betting rights. The league received final bids from private equity firms last month. Serie A clubs met on Friday for an initial review of the bids, according to the sources.
Avenue is ahead despite some rival bidders offering more, because its offer is structured as a common equity investment without the protections on future cash flows sought by some competitors, one of the sources said. Carlyle and Nextalia, which submitted a joint bid, reportedly offered around €650 million for a stake of roughly 17%, valuing the venture at about €3.75 billion.
Avenue Capital and Serie A declined to comment, and Carlyle and Nextalia were not immediately available. The clubs will examine the Avenue offer more closely in the coming weeks, and the sources cautioned that no final decision has been made. Any deal requires the backing of at least 14 of the league's 20 clubs.
The context for the sale is a league that has struggled in recent years to sell its media rights abroad, as broadcaster interest has dwindled amid a crowded fixture list dominated by the expanded UEFA Champions League and the popularity of the English Premier League. According to UEFA data cited by Reuters, the Serie A international media unit generates sales of around €250 million a year, a fraction of those yielded by the Premier League and Spain's LaLiga.
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