Private Equity in the Sport Industry: Are Buyout Funds Investment Criteria Met?

Gianluca Biondi

Student thesis: Master thesis

Abstract

The Thesis focuses on the Sport industry and the Private Equity asset class. The Sport industry has experienced rising in CAGR in the past few years, while revenues and operating income have dramatically increased too. Nonetheless, there has been no significant amount of PE investments in the industry suggesting a possible negative view of the potential of this kind of investment by financial sponsors. The thesis tries to explain this phenomenon by studying to which extent does the Sport Industry fulfill the PE investment criteria established in academia. Despite the presence of an high degree of potential in a highly relevant criteria as portfolio company profitability, value will be destroyed because of all the lost operational improvements that PE is able to generate thanks to its structure and business Model. To conclude, thesis suggest that the unavailability of extreme debt financing and more generally, leveraged capital structures, makes the PE business mode inapplicable to the Sport Industry.

EducationsMSc in Finance and Strategic Management, (Graduate Programme) Final Thesis
LanguageEnglish
Publication date2020
Number of pages36