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Serie A, Italy’s top-tier soccer league has declared that they will not dilute more than 15% in its new commercial entity where all the league TV rights are parked. The private equity firms in the fray has been communicated the 15% cap decision by the Series. They have also been asked to submit concrete proposals by 24th July.
In recent months, the league has been mulling approaches from at least eight companies over investment in a new company that would manage the Serie A broadcasting rights from 2021, the international trademark for the league and its commercial development.
Now, Lega Serie A president Paolo dal Pino has written a letter to the interested firms, which include the likes of CVC Capital Partners, Wanda Sports, Advent International and Bain Capital, setting “a maximum limit (for the acquisition) of 15 per cent of the capital”, as reported by Italian news site Milano Finanza.
This limit would seem to come as a particular blow to CVC, which had entered into exclusive negotiations with the league in May over an offer to acquire 20 per cent of any new company established, in a deal worth some €2.2 billion ($2.5 billion). That negotiating period has, however, now ended.
The letter also said that the proposals must contain “a legal opinion prepared by a leading law firm, in which it is concluded that the terms and conditions comply” with Italy’s Melandri law, which governs the collective selling of media rights in the country.
The letter also asks for specific suggestions as to “the structure relating to the governance of the partnership.”
Italian media has now suggested that despite the investment, the new company created would be fundamentally controlled by the league itself, as some club executives are reluctant to cede control of
Serie A Investments : Details of few Offers in hand for stake sale
Serie A till March was in a period of exclusive negotiation with CVC Capital but once that ended – others have joined the race. Serie A is currently looking to sell a minority stake in a separate division that manages the league’s broadcast rights, both domestically and on an international basis.
– Bain Capital tabled a reported US$3.4 billion preliminary offer for a 25 per cent stake in the Serie A business
– Advent bid was said to value Italian soccer’s top flight at US$14.6 billion.
– Luxembourg-based CVC Capital Partners had reportedly been in exclusive talks with Serie A over a US$2.4 billion deal to acquire 20 percent of the league.
According to the report, Serie A has also appointed French Financial consultancy firm Lazard to evaluate the proposals from the interested parties.
Serie A decided to offload some of its stake in order to financially strengthen itself and fight the impact of the Covid19 pandemic. According to Gabriele Gravina, president of the Italian Football Federation (FIGC), the pandemic has already cost Serie A US$526 million. Not only this in the month of Mar-April, Serie A was also in talks with US-based Blackstone for a US$112 million short-term loan to help Serie A clubs sail through the difficult times created by Coronavirus.
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