IPL 2022: CVC Capital: Know the owners of Ahmedabad franchise, net worth, investments in other sports

With this auction, the BCCI is set to get richer by Rs 12690 crores after Kolkata-based business tycoon Sanjiv Goenka’s RP-SG Group claimed the Lucknow franchise for a whopping Rs 7090 crore while international equity investment firm CVC Capital won the bid for Ahmedabad with a Rs 5600 crore offer.

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The BCCI was expecting a windfall in the range of Rs 10,000 crore but to their surprise, earned Rs 12,690 crore from the two new teams that will take part in the 2022 IPL. The CVC Capital emerged as surprise contenders as they outbid Adani Group, one of the major companies owned by business tycoon Gautam Adani, which bid around Rs 5000 crore.

Who are CVC Capital?

CVC Capital had recently bought a stake in La Liga, and made deals in Formula One, Moto GP, and British Rugby league as well. They now foray into cricket as well.

CVC Capital Partners is a leading British private equity firm with about US$111 billion in secured commitments since inception across European and Asian private equity, credit and growth funds. In total, the CVC Group manages US$70 billion of assets.

When was it established?

According to the company’s website, CVC was established in 1981. CVC is a world leader in private equity and credit with $125 billion of assets under management, $165 billion of funds committed and a global network of 25 local offices: 16 across Europe and the Americas and nine in the Asia Pacific region. CVC is majority-owned by its employees and led by its Managing Partners.

CVC’s assets and strategies?

CVC’s private equity platform manages $97 billion of assets and comprises four strategies: Europe/Americas; Asia; Strategic Opportunities; and Growth Partners, each of which benefits from CVC’s global platform.

What is CVC investment in La Liga?

In 2018, CVC invested in the Spanish football league LaLiga. They will be receiving 10 per cent of profits of the new company during the next 50 years. “They will recoup their investment through their percentage of LaLiga’s total profits,” claims a report.

“Under the terms of the deal, which has been labelled ‘Boost La Liga’, some 90 per cent of CVC’s funding will be channelled directly to the clubs, who will be able to spend 30 per cent of their allocation on registering players and addressing financial debt,” claimed another report.

CVC investment in Formula One & Moto GP:

In 1998, CVC Capital bought Moto GP brand Dorna for €71.5 million ($83 million). Eight years later they sold it in 2006 at 700 per cent profit for €525 million ($609 million).

They also invested in Formula 1, selling their stake to Liberty Media in 2017.

CVC investment in Rugby:

In 2020, the British equity firm acquired a 27 per cent holding in Premiership Rugby, the first division of English clubs. Later in 2021, the company added 14 per cent of the rights for the Six Nations and 28 per cent of the Pro14 tournament, taking their investment total in the sport to around €800 million ($928 million).