Private Equity Investment In Sport

2020 represented a tough financial year for sports organisations, sports teams and the governing bodies of sport due to the Covid-19 pandemic. However, this hasn't put off investment from private equity firms seeking financial returns from the sporting market. Private equity is typically a non-publicly traded source of capital from investors who seek to invest or acquire equity ownership in a company. The problems of cash flow and liquidity challenges in sport as a result of the pandemic are attracting capital from private equity firms. Just recently private equity firm CVC Capital partners purchased a 14.3% stake in Six Nations Rugby, which will see CVC pay roughly £365 million over the next five years. This deal secures investment in rugby for the near future and is due to offset some of the heavy losses that unions of its member nations such as the Rugby Football Union have suffered. The investment into a sport that has struggled significantly at the hands of