The strategies of investment firms, very active in sport in times of crisis

The Luxembourg investment firm CVC Capital Partners has agreed to invest up to £365m (€426m) to acquire one-seventh (14.3%) of Six Nations Rugby, the organising body of the Six Nations tournament, on 11/03/2021.

The deal confirms the growing appeal of sports properties to investment firms, which hold a portfolio of private financial assets in joint ownership, at a time when sport, condemned to matches behind closed doors due to the Covid-19 pandemic and thus deprived of ticketing and hospitality revenues, has significant cash flow needs to overcome the effects of this health crisis.

In rugby, where CVC is particularly well established (it also has a 27% stake in Premiership Rugby and 28% in the Guinness Pro14), matchday revenues usually constitute the majority of the revenues of clubs and leagues. The funds, initially a financial lifeline, prefer a minority stake and the acquisition of commercial rights - leaving the sports and rules to the body - believing that they are better able to manage these issues to maximise their value.

In football, some leagues are in advanced…