CMG Companies Announces Its Intentions to Expand Its Sports-Franchising Portfolio

·3 min read

Dallas, Texas--(Newsfile Corp. - September 13, 2022) - US-based investment and multi-unit franchising organization, CMG Companies, has unveiled plans to continue its growth across the sports-franchising industry. After having invested in numerous teams within cricket and soccer, the firm is taking steps to accelerate the expansion of its portfolio in this area.

This announcement comes in light of the news that private equity firms are increasingly turning their attention towards sports franchises. With a number of high-profile sports takeovers by a variety of investment firms in the past couple of months, CMG is consolidating its position as a leader in this field through its minority-ownership of teams such as the Rajasthan Royals, previous winners of the Indian Premier League (IPL).

In addition to this, CM Sports - the sports-franchising division of CMG - has a stake in the Caribbean T20 Premier League's Barbados Royals, along with the South African T20 League's Paarl Royals. T20 cricket, which is played over just 20 overs per innings, in contrast to the longer 50-over and five-day formats, draws interest from 92% of cricket fans and has quickly emerged as the most popular version of the sport.

CM Sports has also invested in the Texas-based indoor soccer franchise, Dallas Sidekicks, which boasts four championship titles to its name in the long-running Major Arena Soccer League.

The multi-unit franchising company's expanding suite of sports franchises represents an industry-wide shift in focus for private equity firms. The vast majority of the sporting world struggled during the pandemic, due to the postponing of tournaments, fans being banned from stadiums and repeated player absences due to Covid-19.

Despite this, during this period $22 billion was invested in European sports franchises alone by private equity companies. This built on the momentum gained from the 2019 decision from Major League Baseball to permit investment funds to purchase stakes in more than one team. Two of the US' other main sports leagues, the National Basketball Association and Major League Soccer quickly followed suit with similar rule changes.

CM Sports is propelling this move towards sports-franchises being part-owned by investment firms, and senior officials from the company have revealed plans to expand its portfolio. It is looking at investing in sports-teams from the UK's hugely popular soccer leagues, as well as major US-based and international franchise sports set-ups.

Nik Bhakta, CMG Principal, underlines, "In our CM Sports division, we're passionate about getting involved with teams and franchises that we feel a personal connection with. We feel this strongly with each member of our existing portfolio, and we're looking forward to putting our expansion plans into action by exploring new sports, leagues and regions."

Last year, private equity firms spent $51 billion on sports deals worldwide, while $3 billion was spent on minority stakes in teams in North America alone. With this announcement, CMG is continuing to position itself at the forefront of the growing private equity wave that is rolling through the international sporting world.

Media Content:
Name: Miron Kedzierski
Email: info@cmg.team

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