CVC cuts valuation of its LFP Media stake amid TV revenue slump | OneFootball

CVC has reduced the carrying value of its LFP Media stake. According to L'Équipe, the move reflects French football's fragile finances, with TV income around €300m gross this season before costs such as L1+ production, the Buffet tax, CVC and union subsidies.

The fund invested €1.5bn in 2022 to launch the league's commercial subsidiary, providing €750m of its own capital and borrowing the rest. It now views the net asset value, NAV, of that €750m as significantly lower, around €200m according to some sources, a message being relayed to its investors.

When CVC arrived a little over three years ago, it bought 13% of LFP Media for €1.5bn, implying a valuation of just over €11bn for the whole company. That was based on an initial business plan that put French TV rights at €1bn.

With that investment now depreciated, a broadcaster might pay only €150m to €250m for Ligue 1.

Next season only subscriptions from L1+ will remain, with neither the €78.5m beIN pays for the ninth match nor DAZN's €85m compensation. One financier argued CVC would accept swapping its 13% for a return of its €1.5bn because it is far from recouping its outlay. CVC did not respond to a request for comment.

Source: L'Équipe