CVC Weighs Buying $2.2 Billion Stake in Italy’s Top Soccer League

(Bloomberg) -- CVC Capital Partners is considering buying a minority stake in Italy's top soccer league in a move that would give the buyout firm access to one of the world's top sporting showcases, home to star players like Cristiano Ronaldo and Zlatan Ibrahimovic.

CVC is in talks to purchase as much as 20% of Serie A for about 2 billion euros ($2.2 billion), according to people with knowledge of the matter. That would value the league at about 10 billion euros, they said, asking not to be named as discussions aren't public.

In the deal, the fund would buy a minority stake in a league unit that also own its lucrative TV rights, the people said. Talks, which have been underway for several weeks, could still fall apart and the size of the investment hasn't been finalized, they said.

Serie A is seeking funding at a time league play has been been suspended for about two months amid a nationwide lockdown to fight the coronavirus pandemic.

Representatives for Serie A and CVC declined to comment.

CVC has prior experience with investments in sports-related businesses. The private equity firm, which manages about $82 billion of assets, has invested in Formula One auto racing and has weighed buying a stake in the Six Nations global rugby organization.

Italian teams such as Juventus Football Club SpA have reached agreements with players to reduce compensation as the virus outbreak forced the league to halt play. AC Milan, owned by U.S. investment fund Elliott Management Corp., is also considering cutting player salaries.

Italy eased its nationwide lockdown Monday, allowing more than four million employees to return to work and permitting people to leave their homes for certain activities, including jogging and trips to parks. No date has been set yet for a return to play for Serie A.