The Women’s Tennis Association (WTA) is poised to sell a 20% stake to private equity firm CVC Capital Partners for £150m, according to The Times.
While a WTA spokesman told The Times no decision over CVC had been finalised, the British newspaper reports that the deal is ‘pretty much done’ and is expected to be confirmed at a WTA board meeting at the US Open in September.
The WTA board reportedly met at the ongoing Wimbledon Grand Slam and is in favour of the investment, which will secure CVC a 20 per cent share of the tour’s commercial revenue.
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Other leading bidders circling the WTA reportedly included Sinclair Group, which owns The Tennis Channel streaming service, and a group led by Arnon Milchan, the Israeli businessman and film producer who is married to former tennis player Amanda Coetzer.
In June 2021, Sky News reported that Luxembourg-based CVC was in talks over a US$600 million deal to combine the WTA and men’s Association of Tennis Professionals (ATP). However, The Times reports that the ATP first wants to trigger its ‘One Vision’ strategic plan, which was announced last month and includes a 50-50 profit sharing formula, before completing any negotiations for a private equity deal.
The latest development in the proposed CVC investment comes after the WTA confirmed to The Telegraph last month that Saudi Arabia was looking to host a women’s tennis tour event in the country.
The WTA has refused to rule out the proposal, which would provide a welcome cash boost for the tour. Covid-19 had already hit the WTA’s income, which was compounded when the organisation suspended its events in China amid fears for the safety of Chinese player Peng Shuai. This included the lucrative WTA Finals in Shenzhen, which offered a US$14 million prize purse when it was last played in 2019.
According to The Times, the WTA is being advised on the CVC deal by Ari Fleischer, the former press secretary to US president George W Bush. Fleischer has also been advising the controversial breakaway LIV Golf series, which is being funded by Saudi Arabia.
For CVC, the deal would add to major investment across the likes of cricket, European rugby union, as well as French and Spanish soccer.
Source: Sports Pro Media
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