Dorna Sports, the company that owns exclusive global rights for MotoGP, is "considering paying a dividend," according to people with knowledge of the matter. As part of the plan, Dorna would "refinance its existing debt and take out a loan to pay its shareholders a dividend" of more than €200M ($211M). Majority owner Bridgepoint Advisers is holding "preliminary talks" with lenders about the potential deal and no final decision has been made. A spokesperson for Bridgepoint "declined to comment." Dorna and minority investor Canada Pension Plan Investment Board did not "immediately respond to requests for comment" (BLOOMBERG, 3/8).
Bookmaker Paddy Power Betfair admitted that it was "unlikely to return cash to investors this year and promptly lost almost" 6% of its value Monday. Shares of the group, created when Betfair and Paddy Power merged a year ago, fell by 515p to £82.70 ($100.61) after it said that the focus this year would be on "completing the integration and putting both brands on to the same technology platform." Reporting full-year results that were "in line with forecasts," CEO Breon Corcoran admitted that he was "a bit surprised" by the fall in shares (LONDON TIMES, 3/7).
Mike Ashley's retail company Sports Direct admitted that its import costs "could surge when a hedging contract that has protected it from the weakening euro expires next month." Sports Direct said that the devaluation of the euro against the dollar would "impact its gross margin." The sportswear retailer, which buys many of its products in dollars, "hedged its euro to dollar exchange rate at 1.46 -- a spot rate last recorded more than five years ago." This rate will end in April. The euro is currently trading at about $1.05 against the dollar (LONDON TIMES, 3/8).
Sports fashion retailer JD Sports confirmed that its Australian store will open in April. The 540-square-meter store in Melbourne Central "would offer a range of leading global brands servicing men, women and children." The store "would bring cross-category products ranging from footwear to apparel." The retailer "would bring" brands including Nike, adidas, Lacoste, Reebok, Ellesse, The North Face and Puma (IB TIMES, 3/8).
