Matchroom Sport in Talks to Sell Minority Stake Worth $215M

[CrownCityCorey]

Does this have potential to grow, or halt, “Nineball” Pool within the Matchroom Sport organization and our sport as a whole?

“Matchroom Sport is in negotiations with several private equity firms regarding the sale of a minority stake in the event promotions company, according to a report by Sky News.

The group of private equity firms in talks for the 25% stake in Matchroom up for grabs includes Luxembourg-based CVC Capital Partners and New York’s KKR and Searchlight Capital.

• The 25% stake could fetch an asking priceof roughly $215 million.
• A sale could value Matchroom at between $739 million and $862 million.
• No details have been finalized, but a bidder is expected to be chosen in the coming weeks.

Launched in 1982, Matchroom has gained notoriety through boxing. Last year, it agreed to a five-year deal worth over $100 million with sports streaming service DAZN to broadcast its matches based in the U.K. and Ireland. The deal came after Matchroom announced an eight-year, $1 billion joint venture with Perform Group — now DAZN Group Limited — in 2018.

Growing Portfolios​

A deal for CVC or KKR would add to a portfolio of sports-related investments for the firms.


In December 2021, KKR bought a $396 million minority stake in PureGym, and a month later it agreed to buy bike maker Accell Group NV for $1.8 billion.
In March, CVC acquired a 13% stake in the company that will facilitate France’s Ligue de Football Professionnel sale of media rights in a deal valued at $1.6 billion.
Both firms have also been linked to investment opportunities in World Rugby.”

Matchroom Sport in Talks to Sell Minority Stake Worth $215M

Matchroom Sport is in negotiations with several private equity firms regarding the sale of a minority stake in the event promotions company.

frontofficesports.com

 

[bbb]

• A sale could value Matchroom at between $739 million and $862 million.

wow!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!

 

[skip100]

It's hard to know.

Situation A: Pool is a minor part of Matchroom's business but you could imagine these folks want broad exposure to an array of different globally popular sports, which is why they invested in F1, rugby, soccer, bicycling, and so on. Professional pool is moribund at the moment but pool remains one of the world's most popular participatory games. CVC has a minority stake and will not be able to push through major changes like cutting the new 9-ball efforts which are clearly important to Emily.

Situation B: Pool is a minor part of Matchroom's business, likely does not make much or any profit for Matchroom, and could easily be shut down without anyone (except us) crying about it. CVC could convince Emily and company that pool is dead, pool is not coming back and they should focus on other things.

We shall see...

 

[NathanDetroit]

• A sale could value Matchroom at between $739 million and $862 million.

wow!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!

For comparison, Take-Two bought mobile gaming company Zynga for over 12 Billion.

 

[Fatboy]

• A sale could value Matchroom at between $739 million and $862 million.

wow!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!

For that much money, I’d make every 5 ball purple in the world!!!!!

Fatboy<———everyone has their price….

 

[Cameron Smith]

It's hard to know.

Situation A: Pool is a minor part of Matchroom's business but you could imagine these folks want broad exposure to an array of different globally popular sports, which is why they invested in F1, rugby, soccer, bicycling, and so on. Professional pool is moribund at the moment but pool remains one of the world's most popular participatory games. CVC has a minority stake and will not be able to push through major changes like cutting the new 9-ball efforts which are clearly important to Emily.

Situation B: Pool is a minor part of Matchroom's business, likely does not make much or any profit for Matchroom, and could easily be shut down without anyone (except us) crying about it. CVC could convince Emily and company that pool is dead, pool is not coming back and they should focus on other things.

We shall see...

My thoughts too. It could go either way depending on your perspective. Maybe I’m just an optimist but one thing they would be looking for is growth opportunities. Matchroom has a history of growing niche games (ex. Darts) and pool has similar potential given the viewing numbers on YouTube and participation rates around the world.

Meanwhile Matchroom doesn’t have major competitors in this space with respect to promoters broadcasting on major channels/streaming services.

 

[Fatboy]

In my limited experience with having a big biz, mine was worth roughly $100M 20 years ago. So kinda small by comparison. I owned 50% to be clear.

We looked at different ideas/divisions on a loosely structured time line. We’d allocate X amount of $ and put the idea/division in motion and then mostly let it do it’s thing for a period of time.

After a period of time, we’d look at the numbers and see what results we had. If they were bad we’d usually let it go another cycle and then if still bad-either restructure or eliminate.

What it looks like to me is MR has the “pool division” up and going. They have empowered and hired all new staff. They need a couple cycles of numbers to look at them will make a decision.

Could go good or bad. But until they have numbers it will roll on for the time being.

That’s the normal course of biz. Some are more structured and formal than others. I can’t speak to MR’s structure. But it’s very unlikely that if the pool division is making $ it will get cut. If it’s a big loser-rip pool.

Time will tell,

If it holds up, for the love of God and my blood pressure I hope they correct the 5 ball.

Best
Fatboy

PS: all jokes aside I hope for the very best for MR & pool.

 

[kling&allen]

In my limited experience with having a big biz, mine was worth roughly $100M 20 years ago. So kinda small by comparison. I owned 50% to be clear.

We looked at different ideas/divisions on a loosely structured time line. We’d allocate X amount of $ and put the idea/division in motion and then mostly let it do it’s thing for a period of time.

After a period of time, we’d look at the numbers and see what results we had. If they were bad we’d usually let it go another cycle and then if still bad-either restructure or eliminate.

What it looks like to me is MR has the “pool division” up and going. They have empowered and hired all new staff. They need a couple cycles of numbers to look at them will make a decision.

Could go good or bad. But until they have numbers it will roll on for the time being.

That’s the normal course of biz. Some are more structured and formal than others. I can’t speak to MR’s structure. But it’s very unlikely that if the pool division is making $ it will get cut. If it’s a big loser-rip pool.

Time will tell,

If it holds up, for the love of God and my blood pressure I hope they correct the 5 ball.

Best
Fatboy

PS: all jokes aside I hope for the very best for MR & pool.

I assume that pool is the smallest part of their business and requires the smallest amount of ongoing investment compared to their other sports. The purses are low and the venues are second or third rate (the World Cup was played in a run down community center).

Hopefully that buys us railbirds a few years as there is little risk to Matchroom in continuing.

 

[Fatboy]

I assume that pool is the smallest part of their business and requires the smallest amount of ongoing investment compared to their other sports. The purses are low and the venues are second or third rate (the World Cup was played in a run down community center).

Hopefully that buys us railbirds a few years as there is little risk to Matchroom in continuing.

They used York Hall for the Mcup for years. That place is low rent for sure. But has a great vibe for pool. Keeping costs down when the gate $ isn’t much is smart biz.

MR isn’t going to be building any stadiums anytime soon, State funded stadiums would be wonderful, but the public interest just isn’t there for pub games. And that’s their niche.

This question will answer itself over time. So far it hasn’t worked for anyone too long. ESPN threw in the towel, IPT, Bonus Ball, etc. It’s just not marketable enough. The rules aren’t the reason why either-as some suggest.

It’s a old slow analog game played on cumbersome equipment by people who don’t spend much $.

If MR can make it work, wow that would be great.

 

[King T]

They used York Hall for the Mcup for years. That place is low rent for sure. But has a great vibe for pool. Keeping costs down when the gate $ isn’t much is smart biz.

MR isn’t going to be building any stadiums anytime soon, State funded stadiums would be wonderful, but the public interest just isn’t there for pub games. And that’s their niche.

This question will answer itself over time. So far it hasn’t worked for anyone too long. ESPN threw in the towel, IPT, Bonus Ball, etc. It’s just not marketable enough. The rules aren’t the reason why either-as some suggest.

It’s a old slow analog game played on cumbersome equipment by people who don’t spend much $.

If MR can make it work, wow that would be great.

You make some good points, lets just hope that the news will give pool a look again jsut because its part of the company being purchased and whatever has motivated ESPN to air cornhole and tag will get them looking at Pool again.

 

[Fatboy]

You make some good points, lets just hope that the news will give pool a look again jsut because its part of the company being purchased and whatever has motivated ESPN to air cornhole and tag will get them looking at Pool again.

Cornhole is simple to watch.

If you don’t play pool it’s kinda meaningless. People don’t understand how difficult a full length of the table draw shot is, or coming around 3 rails with inside English is.

They do understand a bag going in a hole.

 

[CocoboloCowboy]

Cornhole is simple to watch.

If you don’t play pool it’s kinda meaningless. People don’t understand how difficult a full length of the table draw shot is, or coming around 3 rails with inside English is.

They do understand a bag going in a hole.

It called a game of skill Pool that is, not putting or tossing a bean bag in a hole.

 

[telinoz]

A cash injection can only help is my take on this.

 

[L.S. Dennis]

Was this thing for seen or is it a bombshell out to nowhere?

 

[Black-Balled]

They used York Hall for the Mcup for years. That place is low rent for sure. But has a great vibe for pool. Keeping costs down when the gate $ isn’t much is smart biz.

MR isn’t going to be building any stadiums anytime soon, State funded stadiums would be wonderful, but the public interest just isn’t there for pub games. And that’s their niche.

This question will answer itself over time. So far it hasn’t worked for anyone too long. ESPN threw in the towel, IPT, Bonus Ball, etc. It’s just not marketable enough. The rules aren’t the reason why either-as some suggest.

It’s a old slow analog game played on cumbersome equipment by people who don’t spend much $.

If MR can make it work, wow that would be great.

I really don't see any incoming money c/o MR pool though.

They spent money and built something. Where is the profit...from the sale?

Nice try

 

[kling&allen]

For context, Matchroom is the promoter of the upcoming Canelo GGG 3 fight, which is one of the biggest boxing events of the year (or last few years even). The purse is weird due to GGG's deal with DAZN, but it seems to be in total over $50M.

 

[vapoolplayer]

Fairly simple.

Their pool side is either making money or they are expecting it to. Or it serves a positive financial purpose for them somehow.

Or it doesn’t.

More money/investors won’t all of a sudden change that. As investors are either investing because the like what a company is doing, or a they see the potential to make changes and make money.

Regardless, this likely won’t change the trajectory of the pool side. If it is failing or will fail, that wa already happening or will happen.

If it is profitable or will be, this also wont change that.


Generally speaking though, investors willing to put up substantial amounts of cash is almost always positive for a company. So, indirectly, if matchroom pool is destined for success, this is definitely not a bad thing to see.

 

[KAP1976]

For the last time: cornhole is on ESPN because it is paying for the air time. ESPN didn’t offer cornhole some sweetheart deal.

 

[Mich]

As long as it's a MINORITY stake, I think it's OK. But as everyone knows Private Equity only knows one way -- leverage debt, dump it on the Company, squeeze as much money as possible out of the company for shareholders, dump the company and walk away leaving employees to pick up the pieces while you go out of business

 

[buckshotshoey]

As long as it's a MINORITY stake, I think it's OK. But as everyone knows Private Equity only knows one way -- leverage debt, dump it on the Company, squeeze as much money as possible out of the company for shareholders, dump the company and walk away leaving employees to pick up the pieces while you go out of business

Remington Arms is a good example.