Why is CVC Capital investing in sports?

Last week, CVC Capital were in the news for their proposed $3.2 billion investment in Spain’s La Liga. If the deal goes through, CVC will get a 10.95% share of the league over a 50-year term, which will value the league at $28.8 billion.

CVC Capital has been on an equity investment spree with global sports rights holders with invests in:

• Premiership Rugby (2018): CVC paid $294 million for 27% of the English rugby union.
• Pro14 Rugby (2020): CVC paid $149 million for a 28% stake in the league, which has been rebranded as United Rugby Championship. 
• Six Nations Rugby (2021): CVC invested $510 million in development capital. 
• Volleyball World (2021): The company was formed by CVC and the International Volleyball Federation. The firm invested $300 million.

With all the deals mentioned above, it’s evident that CVC Capital is probably the world’s most prominent investment vehicle in Sports. But, have you ever wondered why CVC Capital invest in sports?

Here is an infographic that shows CVC Capital’s early successful investments/exits in Sports: