May 20, 2022

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RedBird Capital Soars to Front of AC Milan Sale

AC Milan

RedBird Capital appears to be outpacing Investcorp in the race to acquire AC Milan, which is one point away from its first Serie A title in 11 years.

Bloomberg reported [[link removed]] that RedBird has reached a preliminary agreement on a deal worth around $1.4 billion with outgoing owner Elliott Management, and it could be announced as soon as next week.

Investcorp’s exclusive negotiation period with Elliott Management expired at the end of April, but the asset manager was still holding takeover discussions. On Friday, Reuters reported [[link removed]] that Investcorp “couldn’t agree with them [Elliott] on the resolution of the matter” and put its plans on hold.

RedBird, which manages around $6 billion in assets, swooped in after Investcorp’s exclusive talks ended. Should a deal go through, AC Milan would strengthen RedBird’s already robust sports portfolio.

RedBird purchased an 11% stake in Fenway Sports Group for around $750 million last year. FSG, which also includes LeBron James as an owner, owns the Boston Red Sox, Pittsburgh Penguins, and Liverpool FC.In 2020, RedBird purchased [[link removed]] an 85% stake in Toulouse FC, which secured [[link removed]] a promotion back to Ligue 1 from Ligue 2 last month. Milan’s Management Moves

Elliott Management will continue to hold a minority stake in AC Milan. The fund manager took over [[link removed]] the team in 2018 following financial challenges faced by former owner Yonghong Li.

Milan Reports noted [[link removed]] RedBird would like to keep AC Milan’s directors, Paolo Maldini and Frederic Massara. The deal is not locked in and could still be delayed.

Facing $1.8B in Repairs, Titans Push for New $2.2B Stadium

Christopher Hanewinckel-USA TODAY Sports

A new study says it hardly makes fiscal sense to renovate the Tennessee Titans’ home stadium instead of building a new one.

Team officials announced [[link removed]] that the estimated cost of upgrading Nissan Stadium would be a whopping $1.8 billion. Team president and CEO Burke Nihill described its current state as one of the “worst” in the NFL — and is calling for an entirely new venue.

The lease for the stadium, which runs until 2039, stipulates that Nashville is on the hook to pay for repairs.As a result, the mayor’s office appears on board with building an entirely new stadium. In a statement, Mayor John Cooper acknowledged that refurbishment would “cost Nashvillians hundreds of millions of dollars.” New Stadium Plan

The team has already announced plans [[link removed]] for a new stadium that could cost up to $2.2 billion to construct. The venue, which could be elite enough to host a future Super Bowl, would be 1.7 million square feet, and include a dome.

Team owners would pay $700 million, and the state will provide $500 million worth of bonds. Hotel and sales taxes would cover the rest.

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Andreessen Horowitz Launches $600M Gaming-Focused Fund

A16z

Venture capital firm Andreessen Horowitz has launched a $600 million fund exclusively for gaming startups.

Games Fund One is the California-based firm’s first fund solely dedicated to the gaming industry. The influx of fresh capital will allow Andreessen Horowitz to broaden its reach in a global video game industry valued at more than $300 billion.

The fund is led by general partners Andrew Chen, Jon Lai, and James Gwertzman.It will look for investment opportunities in gaming services and apps.The fund will also invest in companies building technology for Web3 and the metaverse.

Andreessen Horowitz has a history of investing in gaming and Web3-related companies, but the firm’s willingness to double down on the industries comes as cryptocurrencies have seen more than $1 trillion of their value wiped [[link removed]] out since November 2021. The gaming industry has also faced challenges that include supply chain constraints and restrictions [[link removed]] on gameplay in China.

Recent Gaming Investments

Sky Mavis, the video game developer behind NFT-based title “Axie Infinity,” raised [[link removed]] $150 million in April to help alleviate losses caused by a recent exodus of players. Investors in the round included Andreessen Horowitz and software and venture firm Animoca Brands.

The same month, Andreessen Horowitz and SoftBank Group led a $150 million funding round for gaming startup Improbable Worlds to fund its new project, M² — a blockchain-enabled system that connects to the metaverse. The round valued [[link removed]] the project at roughly $1 billion.

Conversation Starters In The Leadoff, U.S. investors are taking over the top Premier League teams, the Indy 500 is on pace for the best attendance showing in years, FIFA is being asked to pay migrant workers $440 million for World Cup abuses, and F45 Training sees revenue jump 175% in Q1. Click here to listen [[link removed]]. The French Open begins play on Sunday, and Iga Swiatek is the overwhelming favorite [[link removed]] to capture the women’s title. The question now is whether the 20-year-old World No. 1 can cash in with a second French Open win — and the $2.3 million prize, a massive raise from last year’s $1.7 million. On Thursday, the New York Mets announced that starting pitcher Max Scherzer will miss 6-8 weeks with an oblique strain. It’s a frustrating loss [[link removed]] for a front office that shelled out the highest salary in MLB history ($43.3 million) for the three-time Cy Young winner. Since Kyrie Irving left for the Brooklyn Nets in the summer of 2019, the Boston Celtics have been shuffling point guards — not realizing the answer was right in front of them [[link removed]]. After missing Game 1 of the Eastern Conference Finals, Marcus Smart finished with 24 points, 12 assists, and nine rebounds on Thursday, further proving why he’s Boston’s best option at point guard. Subscribe to Scoreboard for more [[link removed]].

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Saudi PIF Acquires Stake in Nintendo

Find out exactly what’s happening in the private markets every week with highlights from our Front Office Sports Pro Deal Tracker.

We carefully monitor both public and private market data for a snapshot of the sports business landscape.

This week’s Pro Deal Tracker [[link removed]] highlights:

Nintendo, a Japanese multinational company that develops video games and consoles, sold a 5% stake in the company to Saudi Arabia’s Public Investment Fund through a private placement. USA Cricket, America’s first-ever professional Twenty20 cricket league, raised $44 million in Series A and A1 funding rounds, which includes an additional commitment of $76 million over the next 12 months. The investment group was led by Microsoft CEO Satya Nadella. PFL, operator of an MMA sports league intended to serve individual fighters, raised $30 million in a Series E venture funding deal led by Waverley Capital. Azra Games, operator of a blockchain-based company intended to deliver quality, unique collectable and combat games on the blockchain, raised $15 million of seed funding in a deal led by Andreessen Horowitz and NFX. Metatheory, developer of Web3-based games and interactive content, raised $24 million in a Series A venture funding deal led by Andreessen Horowitz, Pantera Capital and FTX Ventures.

Try out the full Deal Tracker. [[link removed]]

What to Watch

The Dallas Mavericks face the Golden State Warriors on Friday at the Chase Center. The Warriors lead the Western Conference Finals series 1-0.

How to Watch: 9 p.m. ET on TNT

Betting Odds: Warriors -6 || ML -260 || O/U 213

Pick: Expect the Mavericks to keep things close. Take Dallas to cover.

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Written by Abigail Gentrup [[link removed]], Amanda Christovich [[link removed]], Justin Byers [[link removed]] Edited by Matthew Tabeek [[link removed]]

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