CVC Capital Partners Aims to Expand in Tennis
PRIVATE equity firm CVC Capital Partners is among the final bidders for a prestigious portfolio of tennis assets that includes the Miami Open and Madrid Open. CVC, known for its significant investments in major sports leagues and events, has already made notable strides in the sports industry with holdings such as La Liga, Premiership Rugby, and the Six Nations. This latest move underscores CVC’s ambition to further diversify and expand its portfolio in the world of sports, particularly in tennis.
A Strong Track Record in Sports Investment
CVC’s involvement in sports is not new. The firm was formerly the majority shareholder in the Formula One Group, which owns Formula 1, one of the most globally recognized and lucrative motorsport competitions. Although they have since reduced their shares, their experience and success in managing such high-profile properties are well-documented. CVC also holds a significant investment in the Women’s Tennis Association (WTA), which represents over 1,600 professional tennis players. Their investment of £120 million in the WTA in the first year of their partnership led to a revenue increase of 24 percent, highlighting their ability to drive financial growth and enhance the value of the properties they manage.
A Bid Worth £790 Million
According to Sky News, CVC is eyeing the Miami Open and Madrid Open with a bid reportedly worth £790 million. These tournaments, while not quite at the level of the Grand Slams, are still considered among the most prestigious in tennis. The Miami Open, known for its tropical setting and star-studded field, has seen recent champions such as Novak Djokovic and Carlos Alcaraz. Rafael Nadal, one of the greatest players of all time, has a particular fondness for the Madrid Open, where he has clinched victory a record five times. Other tournaments included in the deal are the Barcelona Open and an annual Wimbledon warmup at the Hurlingham Club, further solidifying the portfolio’s appeal.
The Role of Raine Group
The sale of these tennis assets is being handled by Raine Group, a prominent investment bank with a strong track record in sports and entertainment deals. Raine Group recently managed the sale of a majority stake in Manchester United to Sir Jim Ratcliffe and Ineos for over £1 billion, demonstrating their expertise in facilitating high-value transactions. This alignment with Raine Group further bolsters CVC’s position and increases the likelihood of a successful acquisition.
The Current Owners: Endeavour Group
The Miami and Madrid Opens are currently owned by Endeavour Group, a global sports and entertainment company led by Hollywood talent mogul Ari Emanuel. Endeavour’s portfolio includes other notable properties such as the Frieze Art Fair, a globally recognized touring exhibition. However, the art fair is also on the block, indicating a strategic shift in the company’s focus. The sale of these tennis assets would allow Endeavour to reallocate resources and potentially invest in other growth opportunities.
The Future of the Miami and Madrid Opens
The Miami Open is scheduled to begin on March 16, with the Madrid Open following shortly after. Despite the high-profile absence of Novak Djokovic, who is not expected to attend either tournament as he chases his 100th singles title, the events are still set to feature a star-studded lineup. Players like Carlos Alcaraz and Alexander Zverev are already confirmed to attend the Miami Open, while Jannik Sinner will miss out due to a doping violation. If CVC’s bid is successful, the future of these tournaments under their management could bring significant changes, including increased investment, enhanced fan experiences, and potentially broader global reach. The tennis world will be watching closely to see how these developments unfold.
