Serie A is seeking to sell a stake in the company that will manage the international commercialisation of the Italian league’s rights, with two US investment groups bidding for a business valued at more than €3 billion.
The company will handle the international sale of not only Serie A’s broadcasting rights but also sponsorship agreements and betting-related deals. The Italian league received final offers from investors last month.
According to Reuters, private equity firm Avenue Capital is leading the race with a €320 million bid for a 10% stake, valuing the company at €3.2 billion.
The New York-based investment firm is ahead of its rivals despite receiving lower financial offers, as its proposal is structured as an investment in ordinary equity. Competing bidders are seeking to secure future cash flows to protect their investments, a source told Reuters.
Avenue Capital faces competition from a consortium comprising Carlyle and Nextalia, which submitted a bid of around €650 million for approximately 17% of the business. The proposal values Serie A’s international rights operation at about €3.75 billion.
Reuters reports that Avenue Capital’s offer will undergo further scrutiny in the coming weeks, with no final decision having been made.
Any deal will require approval from at least 14 of Serie A’s 20 clubs.
Despite boasting some of European football’s most historic clubs, including Inter Milan, AC Milan and Juventus, Serie A has struggled in recent years to sell its broadcasting rights in international markets.
Serie A’s international media business generates around €250 million in annual revenue, a fraction of the amounts earned by the English Premier League and Spain’s LaLiga, according to UEFA data.