Investment fund Oaktree has submitted a preliminary non-binding offer to invest €1.75 billion (USD 1.90 billion) into the media business of Italy’s Serie A soccer league, people familiar with the matter said on Friday.
Serie A’s media business, which mainly consists of the broadcast rights for live matches, has drawn interest from international banks including JP Morgan, as well as private equity investors at a time when Italian clubs are looking at ways to boost revenue.
Oaktree would structure the proposed investment through a combination of debt and cash which would imply an enterprise value for the company managing Serie A’s media rights of €35 billion, the people said.
The Oaktree investment would comprise a debt tranche worth €1 billion and €750 million of cash in return for a 5% stake in a venture managing the media arm.
The proposal would be subject to a lock-up period of five years, the sources added, asking not to be named because the proposal is not public.
Serie A, which on Friday said it will hire a financial adviser to study approaches from private equity firms and banks, declined to comment. Oaktree did not immediately respond to request for comment.
Oaktree previously provided a €275 million loan to Inter Milan in 2021 to help the club weather the impact of the coronavirus pandemic.
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