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The sports investment firm owned by Saudi Arabia’s Public Investment Fund has entered the sale process for EuroLeague, as Europe’s top basketball competition seeks to sell a minority stake at a €1bn valuation.
SURJ Sports Investment, which is owned by the $925bn PIF, may invest alongside private equity firm General Atlantic in its bid to buy a stake in EuroLeague, according to people with knowledge of the details.
They face competition from private equity group BC Partners in the ongoing sale process. BC Partners has been building its sports portfolio, including a recent stake for its credit arm in sports agency GSE Worldwide.
Shareholders in Euroleague Commercial Assets, which owns EuroLeague and the second-tier EuroCup, are looking to sell roughly a third of the business.
The group had been working with investment bank LionTree and the stake sale was in the advanced stages of negotiation, the people said, adding that a deal was not certain.
SURJ, which is run by Danny Townsend the former head of Australia’s top-tier soccer league, was set up last year to further expand the PIF’s investments in sport. In recent years, the PIF has built high-profile stakes in the sector, including football teams and golf. Last year SURJ agreed its first deal, investing $100mn in US mixed martial arts series Professional Fighters League.
More recently, the PIF has signalled it wants to turn more of its focus to domestic investments.
The EuroLeague sale comes at a time when private equity is pouring money into buying sports teams and leagues. According to Gerry Cardinale, founder of the private equity firm RedBird Capital Partners that owns AC Milan, this has led to “massively inflated” valuations based on “facile notions” about future growth.
EuroLeague says its viewer numbers are growing, but it is far overshadowed by the NBA in global audience and recognition.
EuroLeague’s television audience increased by 27 per cent year-on-year in the 2023-24 season, bolstered by rises in Turkey, Serbia, Greece, Spain, Lithuania and Italy. User numbers for its online viewing platform rose 46 per cent to 85,000.
EuroLeague, SURJ, General Atlantic, BC Partners and LionTree declined to comment.
