Europe’s premier men’s basketball competition, the Euroleague, has attracted interest from private equity firms including EQT, BC Partners and General Atlantic, according to two sources with knowledge of the matter, Reuters reported.
Euroleague Commercial Assets (ECA), the entity that owns the Euroleague and EuroCup, has received interest from investors looking to buy a stake in the company and is targeting a valuation of 1 billion euros ($1.07 billion) in a potential sale, the two sources and a third said.
Private equity firms including BC Partners, EQT and General Atlantic have expressed interest in buying a stake in recent weeks. One of the sources said the offers are for a minority stake, although there are three other investors who have expressed interest.
Discussions are at an early stage and the ECA may decide not to pursue any agreement, said the sources, who spoke on condition of anonymity because the matter is private. EQT, BC and General Atlantic declined to comment.
European basketball competitions are the latest in a growing number of sports seeking new investment as a way to raise money. The sport is attracting new investors as they see opportunities in developing broadcasting and marketing rights.
Consultant Liontree asked interested parties to submit preliminary indications of interest a month ago, one of the people said. However, Liontree also declined to comment.
Private equity firms are now awaiting feedback from Euroleague clubs and negotiations will only move forward if the clubs decide to go ahead with the sale, this person added.
The Euroleague Commercial Assets Syndicate Shareholders’ Meeting, made up of 13 clubs including Olympiakos and Panathinaikos, met in Barcelona in June to approve, among other things, new rules to enhance the financial viability of the competition.
Source: Reuters