Private Equity Firm Competes Against Endeavor CEO and Other Firms to Acquire Premier Tennis Events

Private equity firm CVC Capital Partners is placing a substantial bid to acquire two of tennis's most prestigious events: the Madrid Open and the Miami Open. CVC is preparing a US$1 billion offer for the tournaments, currently owned by Endeavor, marking a significant move in the tennis industry. According to Sky News, CVC is among the remaining bidders for the two tournaments, with the sale process being handled by The Raine Group.

The sale is being managed by The Raine Group, and CVC is one of the prominent contenders, facing stiff competition from Endeavor’s own CEO Ariel Emanuel. Emanuel, who is seeking to acquire the events outright, has enlisted Goldman Sachs as advisers to assist with his bid. Other private equity firms, including EQT Partners and Providence Equity Partners, have also expressed interest in the tournaments, although it is unclear if they are still actively involved.

A Strategic Play for CVC in Tennis

The Madrid Open and the Miami Open are both part of the ATP Tour Masters 1000 and WTA 1000 series, making them among the most important events in the global tennis calendar, second only to the four Grand Slam tournaments. With such a prominent standing in the tennis world, these events represent valuable assets. The decision to bid on them marks a significant move for CVC, which has previously invested in sports ventures but has not owned tennis events outright until now.

This bid could further strengthen CVC's already established presence in the sports industry. In 2023, the firm acquired a 20 per cent stake in the WTA Tour’s commercial business for US$150 million, resulting in a notable 24 per cent increase in revenue for the WTA in its first year of operation under the new partnership. The acquisition of the Madrid and Miami Opens could serve as a natural progression in CVC's strategy to expand its sports portfolio and maximise returns in the tennis sector.

Endeavor’s Restructure and CVC’s Sports Investments

Endeavor, which owns both tournaments through IMG, has faced a challenging financial landscape. Despite seeing a nearly 30 per cent year-on-year revenue increase to US$7.11 billion in 2024, the company posted a net loss of US$1.21 billion. The sale of the Madrid and Miami Opens is part of a broader restructuring plan as Endeavor transitions to being privately held.

Earlier in 2024, Endeavor transferred ownership of IMG, On Location, and Professional Bull Riders (PBR) to TKO Group Holdings in a US$3.25 billion deal. The company is also set to be taken private by Silver Lake, with the equity transaction valued at US$13 billion, expected to close by the end of Q1 2025.

While the fate of the tournaments hangs in the balance, CVC’s increasing sports investments are clear indicators of its ambitions. The firm has established strategic partnerships across multiple sports, including Spanish soccer’s LaLiga and English rugby’s Premiership Rugby. Additionally, it has shown interest in acquiring a portion of the International Ski and Snowboard Federation’s (FIS) commercial rights, offering €400 million (US$421 million) in a recent bid.

A Promising Future for Tennis with CVC’s Support

Should CVC successfully acquire the Madrid and Miami Opens, it would mark the firm’s first major tennis ownership. Given CVC’s successful partnership with the WTA, and the proven commercial potential of tennis properties, this move reflects a growing belief among private equity firms in the lucrative and stable nature of sports investments. Tennis, with its loyal fanbase and consistent revenue streams, represents an attractive prospect for firms looking to maximise returns.

However, CVC’s track record, while strong, has not been without its challenges. Despite its investments, the firm’s partner in French soccer, the Professional Football League (LFP), recently faced a decline in media rights values for Ligue 1. This highlights the unpredictable nature of sports investments, despite the generally stable commercial dynamics that make them appealing.

The Path Ahead

The Madrid Open and Miami Open are set to begin soon, with the Miami Open scheduled for March 16, 2025, and the Madrid Open starting on April 21, 2025. As bidding continues, all eyes are on who will secure these prestigious tournaments. With CVC already deeply embedded in the world of sports, its acquisition of the two events would undoubtedly reshape the landscape of professional tennis, adding to its growing influence in global sports management.

With the bidding process expected to conclude later this month, tennis fans, investors, and industry leaders are eagerly awaiting the outcome, as it could signal a new era in the management of tennis’ top-tier events.

About CVC Capital Partners
CVC Capital Partners is a leading global private equity and investment firm, specialising in growth and value-oriented investments across various sectors, including sports, media, and entertainment. With a strategic focus on maximising value through partnerships and active management, CVC has established itself as a significant player in the financial industry, with a robust portfolio of high-profile assets and partnerships worldwide.