Private equity firm BC Partners has initiated exclusive discussions to purchase a minority stake in the EuroLeague basketball competition, surpassing competing offers from General Atlantic and Saudi Arabia’s SURJ Sports Investment.
Sources familiar with the negotiations indicate that London-based BC Partners could reach an agreement with the EuroLeague within a month. The league’s owners aim to sell approximately one-third of the business, valuing it at €1 billion, as previously reported by the Financial Times.
Neither BC Partners, General Atlantic, nor EuroLeague has commented on the ongoing negotiations, and SURJ Sports Investment has not responded to requests for comment.
BC Partners has been actively expanding its sports investment portfolio, including a recent acquisition by its credit division of a stake in sports agency GSE Worldwide.
The EuroLeague features 18 clubs, with Greece’s Panathinaikos currently holding the championship title. Notably, several former EuroLeague players, including France’s Victor Wembanyama and Bojan Bogdanović, have transitioned to the NBA.
The league’s primary sponsor is Turkish Airlines, and it has reported a growing audience, particularly in Turkey, Serbia, Greece, Spain, Lithuania, and Italy.
The trend of private equity investment in sports is increasing, with firms like Luxembourg-headquartered CVC taking significant stakes in the commercial divisions of the French and Spanish football leagues, as well as English Premiership Rugby and the Six Nations rugby competition. Additionally, Clearlake Capital has co-owned English football club Chelsea since a £2.5 billion takeover in 2022, and RedBird Capital Partners owns Italy’s AC Milan.
Recently, the US National Football League (NFL) also approved external investments in its teams, signaling a broader acceptance of private equity in sports.
A recent report from asset manager PGIM noted that sports leagues are increasingly leveraging streaming platforms to reach new audiences and expand their revenue potential. The report highlighted the EuroLeague’s online platform, which saw user numbers surge by 46%, reaching 85,000 in the 2023-24 season.
While investors often view sports investments as resilient during economic downturns because of loyal fanbases, they continue to express concerns over inflated valuations. Gerry Cardinale, founder of RedBird, recently expressed worries that private equity investors have “massively inflated” sports valuations based on overly simplistic assumptions about growth.
The influx of private equity into sports has not been universally welcomed. Earlier this year, the German football league halted discussions regarding potential private equity investments following significant protests from fans.
As BC Partners continues its negotiations, the outcome could significantly reshape the EuroLeague’s financial landscape and enhance its position within the competitive global sports market.
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