UK Law and Practice Contributed by: Jamie Singer and Flora Peel, Onside Law
Other Sports organisations also secure funding from stakeholders, donors and, increasingly, private capital (see 4.4 Recent Deals/Trends ). It is up to each organisation to determine how to distribute money across its sport. 4.4 Recent Deals/Trends Private Capital The sports business investment landscape in the UK has experienced a notable increase in private equity, venture capital and institutional invest - ment and interest. This upward trend in invest - ment continued into 2024, and looks as if it will only keep building momentum, with investors confidentially backing sports properties – espe - cially since stadiums were full and rights-holders could more easily engage with fans. In addition, sports governing bodies and leagues are considering alternative sources of investment such as private capital (which has not tradition - ally been the case) as they manage revenue shortfalls and working capital needs. Rights- holders will seek longer-term partnerships where investors can bring commercial expertise, con - nections, ideas and further sources of funding. Recent examples include: • Two Circles (backed by Bruin Sports Capital) acquired the sports agency, LiveWire Sport. • Private Equity Firm CVC Capital Partners finalised a USD150 million investment into the Women’s Tennis Association (WTA) in return for a 20% stake in the tour’s new commercial business, WTA Ventures. • Elevate Sports Ventures acquired executive search firm SRI and launching Elevate Talent. • Bright Path Sports Partners announced a GBP10 million investment in Ipswich Town, securing a 40% stake in the club.
• Baller League received a USD25 million investment from the Swedish private equity firm, EQT Ventures. • Baller League is one of many start-up leagues entering the market at staggering values. They are becoming more attractive to inves - tors as they seek to gain interest through the use of influencers and public figures. • The Hundred is in the process of selling stakes in each of the Hundred teams, with GBP145 million being paid for London Spirit by the Silicon Valley Consortium. Other own - ers currently include Tom Brady, Lucknow Super Giants and Sanjay Govil, with IPL own - ers Sunrisers Hyderabad and Royal Challeng - ers Bengaluru among the interested parties. Mitigating Risk Private capital investment must navigate govern - ance regulation (in particular around ownership and control – see 4.2 Corporate Governance ), the establishment of breakaway leagues/events and reliance upon club/athlete/league perfor - mance. In addition, global crises pose significant concerns for potential investors, who may seek protective measures to withhold investment in uncertain conditions – a notable example being CVC Capital Partners’ reported request for such rights as part of its Six Nations investment dur - ing the disruptive COVID-19 pandemic. Player Influence More athletes and players are bolstering their earnings outside their playing careers by endors - ing sport brands and/or investing in sports organisations. In recent times, notable examples include: • Simone Biles with gymnastics apparel com - pany GK Elite, and athleisure company Athleta;
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