The World Ski Federation FIS has allegedly rejected 400 million euros from an investor – to the displeasure of some athletes and officials who wrote an incendiary letter. The German Ski Association comments on this in an interview.
There is once again a dispute in the ski circus. And that’s what it’s about: The private equity company CVC has reportedly offered the FIS 400 million euros for a 20 percent share in a joint company for the central marketing of media and sponsorship rights, with the winter sports associations supposed to keep 80 percent of this. The offer is available to the BR24Sport editorial team.
CVC suggested paying 375 million euros in advance and then starting its marketing machine as soon as possible. The company, which had to exit as a possible investor in the German Football League (DFL) in February after fan protests, assured the FIS and the national associations full control over “sporting and regulatory decisions”. With a similar strategy, the distributions to the teams in Formula 1 were quadrupled from 2006 to 2017, claimed CVC.
FIS rejects 400 million euro offer, Shiffrin & Co. respond with fire letter
The FIS apparently rejected this offer. This is said to have prompted activists and association representatives to write an incendiary letter, as the “Süddeutsche Zeitung” and the Swiss newspaper “Blick” reported. Well-known athletes such as US ski star Mikaela Shiffrin, the Swiss overall World Cup winner Marco Odermatt and the German ski ace Linus Straßer as well as high-ranking representatives of the national associations are said to have signed this letter. They criticize President Johan Eliasch’s lonely decision.
The world winter sports association FIS has now sharply rejected this criticism. The allegations were “false,” the FIS said in a statement. The letter indicates that CVC’s offer was rejected without proper examination because the FIS was already pushing forward the centralization of international media rights together with the company Infront.
FIS needs “no further funding”
The presidium around the controversial chairman Eliasch now claims that the discussions with CVC were not about central marketing of media rights, but about a proposal to establish a joint venture with the aim of managing all commercial rights of the FIS and the national associations. However, the world association emphasized that it was “well capitalized” and therefore “does not need any further financing.” The CVC proposal is also inadequate.
“The CVC draft was missing key details, including assessment, strategic plans and governance framework,” the FIS said, adding that “contrary to speculation, it did not include an increase in prize money.” At a meeting with Eliasch, CVC representatives also admitted “that they had not reviewed the strategic plan or financial structure of FIS.”
Eliasch wants to market media rights centrally
The central marketing of media rights by the world association is the goal of Eliasch, who has been in office since 2021. In the statement on CVC’s offer, the FIS now emphasized that it remains “committed to initiatives that are in line with its strategic vision and promote the long-term growth and success of winter sports “. According to the SZ, activists and officials complained in their fire letter about a “noticeable lack of progress”.
So far, the marketing of the international media rights for the FIS events has been the responsibility of the respective national associations. They are their main source of income. The German Ski Association (DSV) has already taken legal action against the FIS’s plans and won the case before the Munich regional court in October.
“With private equity, you don’t rent out your house, you sell it – forever”
We are now close to reaching an agreement with the FIS on this point, as DSV board member Stefan Schwarzbach says in an interview with BR24Sport. He is also critical of the controversial investor offer. In principle, he thinks these ideas are good – but they come at the wrong time. “400 million euros sounds like a lot of money, and it is. The DSV will not carelessly give up money that is supposedly lying on the street. We will also communicate that to the athletes.”
And he points out the following: “If you bring private equity into such an overall structure, then you are not renting out your house, but selling it. And forever.” And he raises the questions: “Does it make sense at this point – and where does the money ultimately go?” Schwarzbach points out that when investors get involved, the marketing situation changes completely. “We then also have to talk about sponsorship, national and world rights – and then the sum is put into perspective.”
The FIS suggests meeting again in six months and considering whether and in what form an investor is needed. The right step for Schwarzbach. “It’s better to take the long view and see: Where does it really make sense to involve a third party? Rather than rushing after the money now without analyzing what risks and opportunities that brings with it. I do Right to take the first step before the second.” And when it comes to central marketing, this first step now seems to be imminent.
Source: BR24 December 10, 2024 – 6:30 p.m
