- GSG launched in 2025 and houses CVC’s sports investments
- Allera joined firm from BT last year
- Key investments include Ligue 1, LaLiga and rugby
Marc Allera, the chair of private equity firm CVC Capital Partners’ Global Sport Group (GSG) division, believes streaming services have ensured an “even healthier” media rights market and is confident that investments in Ligue 1 soccer and Prem Rugby will eventually bear fruit.
GSG was formed last year as a vehicle to house more than €4.6 billion (US$5.33 billion) worth of sporting investments made by CVC since 2018, including stakes in LaLiga and Ligue 1’s media business, as well as shares in Prem Rugby, the United Rugby Championship (URC) and the Six Nations.
In addition to the capital injection, companies in GSG’s portfolio are also promised access to resources and expertise that will increase their value, benefiting all parties.
The principal mechanism by which this value can be unlocked has traditionally been media rights. However, changing consumption habits, macroeconomic challenges and budget pressures have made it difficult for all but the biggest properties to grow media revenues, with tier one sports increasing their share of the money available.
Speaking at SportsPro New York, Allera expressed his belief that live sport’s ability to command huge live audiences in a fragmented market and its role in attracting and retaining subscribers would ensure it continues to remain desirable. However, he acknowledged future growth would rely on diversification and more effective data analytics.
“I’m confident that the media rights landscape, over the long term is still incredibly healthy and arguably even more healthy with global streamers who have recognised the power of sport and appointment viewing coming in [to the market],” he said.
“Sport is the most powerful IP on planet earth. It is the only thing that can unite a country in a particular moment or divide a city. It’s the only appointment to view content that anyone will sit and watch at that time, in that moment, whether it’s in the stadium, on the sofa or couch, or in the pub or restaurant.
“Fans will tune in week in, week out to support their team or their nation. Nothing [else] will do that.
“You’ve got incremental, incredibly well funded platforms adding to the media landscape, which I think is a tailwind for the long term. But I do believe that the opportunities to grow revenue beyond media do exist.”
Earlier this week, GSG reportedly raised €3.7 billion (US$4 billion) in financing – valuing the unit at €7 billion (US$8.02 billion) – in order to fund future acquisitions. Allera suggested properties that had the ability to realise future opportunities through the better use of data would be of interest to GSG, citing digital sponsorship and gaming as two examples of potential growth.
“[The big challenge in sport] is how to drive more value from the IP that you have,” he explained. “The media market is changing beyond all recognition … the sponsorship market will be changing significantly.
“We work with our assets to ensure they really understand the importance of data and analytics and of understanding [their] fans because that’s how you demonstrate value to streamers, sponsors and partners in a crowded media market.
“It’s crowded enough today, and it will get even more crowded with AI able to generate more content. Consumers have only got 24 hours in the day so the need to understand them and deliver great, relevant content is hugely important.”
Both the investments in Ligue 1 and Prem Rugby predate former BT Consumer chief executive Allera’s arrival at GSG. However, both leagues have experienced difficulties in recent years. Allera said both were long-term plays, allowing them to adopt a bigger picture approach rather than chase short-term gains.
Ligue 1 has seen the value of its media deals first contract and then evaporate entirely, forcing it to launch a domestic streaming service that offers neither the same level of revenue, nor the financial certainty of a traditional media rights deal.
The league received €500 million (US$573 million) from DAZN and BeIN Sports in 2024/25, but forecasts suggest Ligue 1+ will generate just €158 million (US$181.1 million) this season, with BeIN’s contract for one game a week worth €98.5 million (US$101 million).
“Where we take a long-term view, we don’t expect results overnight,” Allera explained. “Ligue 1+ achieved more than one million subscribers in their first season, which is an incredible achievement, and many leagues are now watching with real interest to see how that product is performing. Going back to data and analytics and the importance of understanding your fans, I think it’s going to be a really interesting case study in terms of a potential distribution model that can work.”
Meanwhile, Prem Rugby has seen three clubs withdraw from the league due to bankruptcy. Allera said the potential benefits of its initial investment were offset by the unexpected financial impact of Covid-19. He pointed to strong underlying metrics and belief that a new franchise structure will drive up standards and increase the value of the league.
Indeed, the competition’s new UK£200 million (US$264.8 million) domestic broadcast deal with TNT Sports is a “significant uplift” on the current arrangement.
“[Prem Rugby] had to deal with a pandemic,” Allera said. “No one could have predicted that so the timing of the investment was unfortunate. This is the benefit of taking a long-term perspective and CVC supports management teams for all kinds of situations.
“What we’re seeing now, in a more stable world, is the product shining through as plans come to fruition.
“[The Prem] is in a great position. As a league it’s performing brilliantly. Audience figures are up hugely, audiences in the stadium are increasing significantly, and the team there are doing a fantastic job in improving that product. The fans are recognising that and feeling that.”
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