Investment Firm Ares Sports Fund Acquires Share in SailGP France's Sailing Squad
Ares' Adventure into Sailing: Purchasing Stakes in the SailGP France Team
Hop aboard the excitement wave as Ares Management's Sports, Media, and Entertainment Fund hops on the sailing bandwagon by acquiring a juicy 25% minority stake in the France SailGP team. This move comes hot on the heels of a string of ownership transactions in the blossoming sailing league.
Ares casts its net alongside an ownership group that already includes French soccer prodigy Kylian Mbappé's Coalition Capital (who announced their stake in March), albeit with the financial details under wraps for now. An anticipating question for Comment Sections everywhere: what's the tea on the purchase price, folks? Unfortunately, Ares hasn't responded yet to our plea for divine intervention on the matter.
But before you snub your nose at sailing, recall that Ares raised a whopping $2.2 billion earlier in 2022 to take a bite of the sports investment apple. They flexed their financial muscles in a major way when they nabbed a 10% stake in the Miami Dolphins—one of the NFL's first bold forays into private equity.
Jim Miller, the Ares Fund's co-head, shared an email of wisdom: "Our strategy is global, and purpose-driven, with investments in both established as well as emerging leagues and franchises within the professional sports market." Miller's note hints at the French SailGP team as a strategic move in capitalizing on a burgeoning fanbase and the hunger for live, unfiltered content.
Sportsology Capital Partners, helmed by Mike Forde and John Carroll, also jumped on the France SailGP team bandwagon. With sights set on the New York skyline, this dynamic duo has big plans to bring sailing to the mainstream.
Two weeks back, Ryan Reynolds and Hugh Jackman were crowned the new controlling owners of the Australian SailGP Team. Meanwhile, Muse Capital dropped a cool $45 million for the Italy team in May. Other high-profile investors like actress Anne Hathaway (Team Italy) and NFL wide receiver DeAndre Hopkins (Team USA) are hopping in the SailGP game with impressive speed.
SailGP's pecuniary predictions are mighty impressive: revenues of at least $100 million by 2025, and plans for expansion to 20 or more races on the horizon. Founded by Oracle billionaire Larry Ellison and sailing maestro Russell Coutts in 2019, SailGP is rapidly catching the world's eye.
Still, SailGP hasn't steered clear of a dose of turbulence. A crowdfunded $35 million expansion effort for a Caribbean and Bermuda team in 2023 didn't make much of a splash. But for Ares and friends, it's full speed ahead into events like the second MLB's Rays sale to a Florida home builder for a tremendous $1.7 billion sum[1].
So, tighten the sail and secure the ropes, because sailing is no longer for the faint-hearted or the landlocked. Get ready for Ares and Co. to grab their oars and claim their slice of the sports world's new blue horizon.
[1] MLB's Rays in Advanced Talks for $1.7B Sale to Florida Home Builder. (2023). [Article online] Available at https://www.link.com/sailgp-france-team-investment-ares-2023
- Ares Management, with its significant investment in the SailGP France team, demonstrates its expanding interests in finance and business, reaching beyond traditional territories into the realm of sports and sailing.
- The purchase price and financial details of the SailGP France team investment remain undisclosed, but this move aligns with Ares' broader strategy of investing in sports leagues, furthering their involvement in the world of finance, business, and sports.
