CVC Capital Partners, the former owner of Formula 1, is "set to re-enter professional sport" with a £225M ($284.5M) deal to acquire a minority stake in the holding company behind Premiership Rugby, providing a "crucial capital injection to the cash-starved clubs of the game," according to Espinoza & Massoudi of the FINANCIAL TIMES. A deal for Premiership Rugby may be finalized with the private equity firm "as soon as this week," according to sources. The two sides were "racing" on Monday to get the final sign-off from three clubs, Harlequins, Leicester Tigers and Worcester Warriors. An agreement would end months of negotiations between CVC and the holding company of the elite competition after an initial bid worth £275M ($348M) for a majority, 51% stake was rejected. Reluctant to relinquish control, the 13 clubs in the union are "planning to sell CVC a minority stake in the business, allowing each team to walk away with a windfall." The exact terms of the agreement "may include other details that adjust the economics and incentives of the deal over time" (FT, 12/17).
