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- Serie A could sell stake of up to 49%
- Italian soccer league brought in JP Morgan last year to explore options for international media rights
Italian soccer’s Serie A has gauged interest from private equity investors as it moves ahead with plans to sell a minority stake in its international media rights business, according to Reuters.
It was reported last year that the league had enlisted investment banking giant JP Morgan to review various proposals, including the creation of a dedicated media subsidiary in which a minority stake could be sold to private equity firms.
Apollo Global Management, Ares Management, CVC Capital Partners and Sixth Street Partners are said to be among several potential bidders that JP Morgan has informally sounded out about the potential deal.
Reuters added that a formal process is expected to start later this month.
JP Morgan has also reportedly helped Serie A draft a business plan for its international media operations, encompassing sponsorship agreements and contracts to host Italian Super Cup matches abroad. The league could sell a stake of up to 49 per cent in the unit as part of a multi-year agreement.
The deal would follow the model of similar private equity investments in other European leagues. Notably, Spain’s LaLiga and France’s Ligue 1 have struck similar deals with CVC, worth several billion euros, which involve the firm taking minority stakes in both competitions’ media rights businesses in exchange for upfront capital and long-term revenue sharing.
Serie A currently earns about €250 million (US$292 million) annually from international media rights, a figure well below that of the Premier League and LaLiga. The Italian top flight had previously aimed to triple its international media revenue by 2030 to close the gap with other top European leagues. However, Serie A chief executive Luigi De Siervo acknowledged last year that the international market is especially challenging for any competition other than the Premier League.
More than five years ago, Serie A explored a similar plan to sell a stake in its domestic media unit. The league had looked on the verge of a major financial boost in November 2020 after its clubs gave the thumbs up to a €1.7 billion (US$2 billion) offer from a CVC-led consortium, which included Advent International and FSI, to take a stake in the competition’s new media business.
However, that deal collapsed in 2021 after multiple clubs, including heavyweights Juventus and Inter Milan, felt the proposal was no longer viable. Serie A had reportedly hoped to informally restart talks in the autumn of that year, but no progress was made.
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