Weekend Sports Update: Leading Sports News in Private Equity Realm
Powerleague, the UK's largest five-a-side football operator, has announced exciting plans to diversify its sports offerings. The company, which operates 43 clubs across the UK and manages over 250 third-party venues, has revealed plans to add padel tennis to nearly half of its sites. This move is expected to accelerate Powerleague's growth and broaden its sports portfolio.
Broadsword Investment Management, a prominent investment firm, has recently acquired a majority stake in Powerleague. This investment will provide long-term capital and strategic support to Powerleague as it embarks on this new venture.
Justin Ishbia, the founder of Shore Capital Partners, has made headlines with a significant acquisition of his own. Ishbia has agreed to acquire a controlling stake in the Chicago White Sox, valued at approximately $1.8bn. If no sale is finalized by the end of the 2034 season, Ishbia will have the right to acquire Jerry Reinsdorf's majority stake, positioning him to become majority owner as early as 2029.
Meanwhile, in the world of global sports, Partners Group has agreed to a potential deal for EQT to acquire WRC Promoter, the commercial rights holder of the World Rally Championship (WRC), worth approximately £500m ($675m). This marks a rare move by the Swedish private equity firm into the global sports sector. EQT is one of several firms evaluating an offer for WRC Promoter.
In a separate development, Elevate and RedBird Capital Partners, through their joint venture RedBird IMI, have launched a $500m fund targeting commercial and infrastructure investments across US college sports. This fund aims to professionalise college sports programs and upgrade infrastructure, such as stadium refurbishments. The fund comes in response to the recent House v. NCAA settlement requiring schools to pay athletes and invest more in their programs.
The new fund, known as the Collegiate Investment Initiative, will provide long-term capital and strategic support to universities navigating the transition to a student-athlete revenue-sharing model. Other investors in the fund include Velocity Capital Management and the Texas Permanent School Fund Corporation.
Private equity firms have been analyzing opportunities in this sector but have yet to deploy significant capital due to complexities. The Collegiate Investment Initiative addresses needs like upgrading the 30-plus college stadiums requiring refurbishment.
Powerleague, founded in Paisley, will retain its existing management team post-transaction. The company boasts nine million annual customers and has been a staple in the UK's sports and leisure industry. With its new investment and expansion plans, Powerleague is poised for continued growth and success.
[1] Source: SportsPro Media
[2] Source: ESPN
- Broadsword Investment Management, a notable investment firm, has purchased a majority stake in Powerleague, a UK-based five-a-side football operator, providing long-term capital and strategic support for its expansion into padel tennis.
- Justin Ishbia, a prominent figure in private equity, has acquired a controlling stake in the Chicago White Sox, valued at approximately $1.8bn, positioning him to potentially become majority owner by 2029.
- In the global sports sector, EQT is considering a deal for WRC Promoter, the commercial rights holder of the World Rally Championship (WRC), worth approximately £500m ($675m), marking a move by the Swedish private equity firm into this industry.
- Elevate and RedBird Capital Partners have launched a $500m fund, the Collegiate Investment Initiative, targeting commercial and infrastructure investments across US college sports, aiming to professionalize programs and upgrade infrastructure, like stadium refurbishments.
- The Collegiate Investment Initiative provides long-term capital and strategic support to universities navigating the transition to a student-athlete revenue-sharing model, with additional investors including Velocity Capital Management and the Texas Permanent School Fund Corporation.
- Despite analyzing opportunities in the sports sector, private equity firms have yet to deploy significant capital due to complexities, but the Collegiate Investment Initiative addresses needs like upgrading college stadiums that require refurbishment.
- Powerleague, a UK sports and leisure company, will retain its existing management team post-transaction, with plans to add padel tennis to nearly half of its sites, aiming to further grow and succeed in the industry.
