Italian soccer's top-tier Lega Serie A is reportedly reconsidering the sale of a stake in its overseas media rights business. This move comes four years after the league's initial attempt to sell a stake to an outside consortium.
The league has initiated discussions with private equity firms, assessing their interest levels in acquiring a stake in its media rights business. However, these talks are still at an early stage and there is no guarantee that a deal will be struck between the 20-team league and an investment firm.
In late 2020 and early 2021, Serie A first attempted to sell a stake in its media rights business to an outside consortium comprising CVC Capital Partners, Advent International, and Italian fund FSI. However, this proposal was met with resistance from several clubs within the league. The proposed deal would have been worth €1.7 billion ($2 billion) for the league. Despite similar conversations with potential investors taking place again in 2023, no agreement was reached.
Comparisons with other leagues
CVC Capital Partners already holds investments in Spain's LaLiga and France's Ligue 1 media rights businesses. The latter deal provided Ligue 1 with a financial boost of €1.5 billion when it was finalized in early 2022.
Meanwhile, Germany’s Bundesliga has repeatedly failed to secure outside investment due to opposition from clubs and supporters alike. These leagues all trail England's Premier League regarding media rights revenues; hence they are exploring alternative ways of raising capital.
Serie A aims to triple its overseas media rights revenues by 2030 compared to earnings from the last cycle (2021-24). During those three seasons, total overseas media right fees for Serie A amounted to €657 million – significantly less than Premier League’s £5.3 billion (equivalent to €6.2 billion) for the 2022-25 cycle.
Potential changes in legislation
The Italian government is contemplating removing legislation that currently prevents Serie A from selling its domestic broadcast rights to a single buyer. Known as the Melandri Law, this change could significantly alter how Serie A sells its media rights. However, it's worth noting that the next tender process for the league is unlikely to commence until 2028, for the 2029-30 campaign.
For overseas Serie A media rights, there was previously a three-season limit on rights cycles. This meant that every three years, the league had to re-tender in each territory. However, this rule was abolished in mid-2022 and has since led to an increase in rights fee valuations across key markets such as the Middle East and US.
While Serie A's potential sale of a stake in its overseas media rights business is still uncertain at this stage, it represents an intriguing development within European football’s financial landscape.
