By Elvira Pollina and Amy-Jo Crowley MILAN/LONDON, April 8 (Reuters) - Italy’s Serie A soccer league has sounded out private equity investor interest for a minority stake in its international media
Serie A Explores Private Equity Stake in International Media Rights Unit
Private Equity Interest in Serie A's International Media Rights
By Elvira Pollina and Amy-Jo Crowley
Background and Current Developments
MILAN/LONDON, April 8 (Reuters) - Italy’s Serie A soccer league has sounded out private equity investor interest for a minority stake in its international media rights business, three sources with knowledge of the matter told Reuters.
Italy's top flight, home to Inter Milan, AC Milan and Juventus, last year hired JP Morgan to explore options for a unit holding the league's international media rights, Reuters reported last year.
Financial Overview
The division generates sales of around 250 million euros ($292.6 million) a year, a fraction of those generated by England's Premier League and Spain's LaLiga, according to data from European soccer body UEFA.
Potential Bidders and Process Timeline
Funds Apollo, CVC, Ares and Sixth Street are among several potential bidders JP Morgan has informally sounded out about the potential deal, the sources added. A formal process is expected to start later this month, one source said.
Serie A, JP Morgan and Sixth Street declined to comment.
Apollo, CVC and Ares did not immediately respond to requests for comment.
Challenges and Previous Attempts
Struggles in Selling Media Rights Abroad
Serie A has struggled to sell its media rights abroad, as broadcasters' interest dwindled due to a crowded fixture list dominated by the expanded UEFA Champions League and the popularity of England's Premier League.
Past Efforts to Sell Stake in Domestic Media Unit
It explored a similar plan in 2021 to sell a stake in its more lucrative domestic media unit, but those talks collapsed after the league’s 20 clubs failed to reach the required majority to approve a deal.
Deal Structure and Strategic Implications
Business Plan and Sponsorship Agreements
JP Morgan has assisted the league in drafting a business plan for its international media operations, also encompassing sponsorship agreements and contracts to stage Italian Super Cup matches overseas, the sources said.
Proposed Stake and Agreement Terms
Under the proposed deal pitched to funds, the Italian league could sell an up to 49% stake in the unit as part of a multi-year agreement, the sources said.
Comparison with Other European Leagues
The potential Serie A move would mirror private equity investments completed in other European leagues, including Spain and France, where investors have taken minority stakes in media rights businesses in exchange for upfront capital and long-term revenue sharing, the sources said.
Approval Requirements
Under league rules, at least 14 clubs must vote in favour of transactions involving strategic commercial assets.
Additional Information
Currency Exchange Rate
($1 = 0.8543 euros)
Reporting Credits
(Reporting by Elvira Pollina in Milan and Amy-Jo Crowley in London, Editing by Anousha Sakoui and Ed Osmond)
