Lagardere pays EUR 865 million for SPORTFIVE

SPORTFIVE, the Hamburg-based international sports marketing agency, was sold to French media group Lagardère SCA by the owners RTL Group, private equity group Advent International and Goldman Sachs. Antitrust authorities must still approve of the reported EUR 865 million deal.

SPORTFIVE holds the television and marketing rights of around 35 European national associations and more than 250 clubs. Other company assets includs rights for some the most sought after sporting events, such as UEFA's EURO 2008 and the Six Nations Rugby.

Arnaud Lagardère, chief executive of Lagardère and a shareholder of French pay-broadcaster Canal Plus, has always been an avid sports fan and is anxious to get into the sports market.

Lagardère wants to expand its television operations and he sees SPORTFIVE as the way to do that. He recently announced that he would combine the magazine, audiovisual and digital publishing activities, along with all advertising-related domains, into one expanded entity that will cover sports rights.

Analysts say Lagardère, as SPORTFIVE's owner, will be good for the company because it is not under the same pressure as private equity companies.

As a strong advertising and media company, SPORTFIVE will bring its advertising experience and contacts to the table. It is already a lean company but with Lagardère and his creative personnel, the agency will grow even more in a competitive marketplace.

Source: euFootball.BIZ © Copyright 2006 - All rights reserved.