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Volume 6 No. 212

Leagues and Governing Bodies

F1 has generated the "biggest return from a single investment in the past 12 months" for investment firm CVC Capital Partners, according to Anne-Sylvaine Chassany of BLOOMBERG. CVC has "marked up the value of its stake to 4.7 times its initial investment." The leveraged buyout firm "has already reaped" €1.74B ($2.3B) from the holding after selling a minority stake and refinancing loans. CVC bought about 63% of F1 in '05 and '06 from its lenders "for an undisclosed amount," using about $2.5B of loans. In May and June, the private equity firm sold a $2.1B stake to Waddell & Reed Financial Inc., BlackRock Inc. and Norges Bank Investment Management in "deals valuing the auto-racing company" at $9.1B (BLOOMBERG, 9/19).

A PIECE OF THE PIE: SKY NEWS' Mark Kleinman reported that government-backed funds in Kuwait and Singapore "have acquired a stake in CVC Capital Partners, the buyout firm, which counts F1 motor racing and the owner of Madame Tussauds among its investments." Entities connected to the Kuwait Investment Authority and the Government Investment Corp. of Singapore and an unidentified Asian fund "have bought 10% of CVC's management company in a deal, which reinforces its status as one of the most influential private investors in the world." The transaction "was struck in June" and was outlined to investors in CVC's funds at the time. It was also discussed at the firm's annual conference in London last week. The new investors "gain a share of the profits made by the management company and get preferential access to investment opportunities." CVC has been "planning a flotation of F1 in Singapore although it was delayed earlier in the year because of the Eurozone crisis," and people close to the firm said that it is "not likely to be revived in the immediate future" (SKY NEWS, 9/19).

FIFA Executive Committee Member Jacques Anouma has "called for a strict term limit for the presidency of the Confederation of African Football," according to the BBC. The Ivory Coast Football Federation former president is "hoping to become" the next president of CAF. Cameroon's Issa Hayatou has held the position since '88. Anouma told the BBC's World Football show that the game in Africa cannot carry on being "run like a fiefdom controlled by a village chief." He believes that the next CAF president should serve a "maximum of three four-year terms." Anouma: "I believe three mandates of four years will be the right thing; 12 years will be enough for anyone to put in place his programme. If we do that it's going to solve the problem because people will not be able to last longer than they should" (BBC, 9/20).

British Olympic Association CEO Andy Hunt "has presented a restructuring programme to the organisation's board that will lead to a cut in the number of top staff," raising fresh questions over Clive Woodward's future as the BOA's director of sport, according to the PA. Former England Rugby Coach Woodward "will meet Hunt within the next 10 days to discuss the future." There are eight directors at the BOA, and under the restructuring program "it is expected that a number of the posts will be merged." The BOA is facing a financial deficit after a significant expansion in costs and staff numbers ahead of the London Games and "needs to cut expenditure" (PA, 9/19).

The "simmering war of words" between the IOC and the Indian Olympic Association "intensified with the IOC slamming the IOA for refusing to accept an observer for its upcoming elections and threatened to take action" if the poll date is not furnished by Sept. 25, according to the PTI. In response to a Sept. 13 missive by IOA President V.K. Malhotra, in which he had termed the world body's decision to send an observer "as unacceptable," the IOC said that such supervision was necessary owing to the "confusion surrounding the status" of former IOA President Suresh Kalmadi. In a letter the IOC wrote: "The IOC and OCA [Olympic Council of Asia] are extremely astonished by the content of your letter and by the fact that you do not seem to understand that the internal situation of your NOC is not as smooth and normal as you want to depict it" (PTI, 9/20).

The Japan Basketball Association announced that its current Japan Basketball League will be relaunched as the National Basketball League for the start of the '13 season. The letter 'N' of NBL also represents "New" and "Nippon," which means "Japan" (JIJI PRESS, 9/19). ... Business house Wave Group has taken up the Delhi franchise in the Hockey India League, making it the fourth of the six teams that will compete in the field hockey tournament starting in January. Wave Group, under Gurdeep Singh 'Ponty' Chadha, will own the Delhi franchise in the HIL, making it the business group's "maiden foray in the world of sports" (PTI, 9/17).