DFL investor process: Who and what is behind “CVC”?

Fan alliance celebrates interim success

On Tuesday, the US financial investor “Blackstone” withdrew from the bidding process for the media rights of the Bundesliga and 2nd Bundesliga. The last contender for a percentage stake in the subsidiary for the exploitation of media rights remains “CVC Capital Partners”. “The further process will be continued according to the planned schedule with CVC,” said the German Football League, which is hoping for a payment of one billion euros in exchange for a share in the TV revenue.

The active fan scenes have been protesting against the DFL’s plans for months. In a vote by the 36 professional clubs last December, the necessary two-thirds majority was only barely achieved. The first vote in May last year failed to achieve the necessary majority, after which the concept was said to have been revised. The contract with the strategic marketing partner should now be concluded before the national TV rights are put out to tender. The auction is scheduled for mid-April. The DFL recently reduced the number of applicants little by little to two companies, now only one of them remains. But who and what exactly is behind “CVC”?

DFL investor process: Who and what is behind “CVC”?

The investor from Luxembourg, whose roots lie in the USA, is one of the ten largest private equity companies in the world – new German for investment companies. These collect money, manage it and then invest it in companies whose shares are not traded on stock exchanges or other markets. According to its own information, “CVC” currently manages around 188 billion euros. After joining, the investment companies usually provide a company with advice. This is also what the DFL concept envisages.

“CVC” invests in more than 100 companies worldwide that employ over 450,000 people. A planned IPO had been postponed several times in the past, among other things due to uncertainties on the global market, such as Russia’s war of aggression against Ukraine. It is not openly clear who exactly the financiers of “CVC” are. In addition to private individuals, this also includes institutional investors such as credit institutions or funds.

This is where the Saudi Arabian sovereign wealth fund “PIF” comes into play, the kingdom’s public investment fund. This means that the Gulf state, which has been heavily criticized for violations of human rights, is already heavily involved in sports and football. For example, “PIF” took over the Premier League club Newcastle United in 2021 and a handful of clubs in the domestic Saudi Pro League such as Al-Nassr FC around superstar Cristiano Ronaldo (39) in 2023, which resulted in a transfer offensive worth millions. “PIF” is also one of the financiers of “CVC”.

“CVC”’s investments are wide-ranging, the first major takeover in sports concerned Formula 1. From 2006 to 2012, “CVC” held the majority share, and in 2016 the investor withdrew completely. Criticism was already loud back then. Bob Fernley, deputy team principal of Force India, accused CVC of raping the sport during the period: “All their measures were taken to get as much money out of the sport as possible and put as little into it as possible. “

Bundesliga soon too? “CVC” has already invested in Ligue 1 and LaLiga

In addition to other sports such as rugby and tennis, “CVC” has also long been active in the football business. The investor has already concluded deals similar to those with the DFL with the French Ligue 1 and the Spanish LaLiga – for even higher sums. In France, “CVC” took over shares in a Ligue 1 subsidiary and secured 13 percent of the marketing revenue, primarily from TV rights, for 1.5 billion euros. In Spain, “CVC” will receive eleven percent of all revenue from the first and second leagues for the next 50 years and took over 10.95 percent of the audiovisual rights. 2.67 billion euros went to this. There was headwind from Barça and Real Madrid, among others, who were particularly concerned about the long term of the agreed partnership. In the end, a quintet of the two top clubs did not take part in the deal.

In addition, in 2016, “CVC” acquired a majority stake of 60 percent in the betting provider “Tipico”, which is one of the most important sponsors of the DFL and record champions FC Bayern. The investment company had already been active in this segment before. After investing in the bookmaker “William Hill”, “CVC” took over 80 percent of the gaming company “Sky Betting & Gaming” in 2015. The many cross-connections in football could lead to conflicts of interest.

“CVC” relies on active lobbying for all deals, and Carsten Schmidt is supposed to pull the strings in the background as a consultant for the DFL deal. The 60-year-old was most recently CEO of Hertha BSC from December 2020 to October 2021 and previously managing director of the pay-TV channel “Sky”, which has acquired numerous football rights. In Germany, “CVC” has a stake in companies such as the chemical company “Evonik”, a sponsor of Borussia Dortmund, and the perfumery “Douglas”, outside of sports.

Fan alliance for “Blackstone”: “Celebrate interim success”

The fan alliance “Our Curve” has meanwhile welcomed the exit of the company “Blackstone” from negotiations with the DFL. “We celebrate this as an interim success,” said chairman Jost Peter of the “German Press Agency”. “That was exactly what we wanted to achieve. Our protests were successful.” According to Peter, the resistance will also continue against “CVC”.

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