A group of high-profile ski racers and snowboarders, along with executives and board members, are challenging their sport’s governing body to reconsider a lucrative investment opportunity that could be worth more than $400 million
DENVER (AP) — A group of high-profile ski racers and snowboarders, along with executives and board members, are challenging their sport's governing body to reconsider a lucrative investment opportunity that could be worth more than $400 million.
The International Ski and Snowboard Federation (FIS) was approached on Nov. 30 with a proposal from CVC Capital Partners, a company that's invested over the years in Formula 1, soccer teams, rugby squads and women’s tennis.
Titled "Project Snow," CVC was potentially offering an approximately $420 million (400 million euros) investment for a 20% shareholding in the commercial rights of snow sports ranging from snowboarding to cross-country skiing to Alpine skiing.
FIS responded days later in a letter to CVC officials that it was "very well capitalized and has no current need for further funding to help to deliver its strategic plans.”
Prominent athletes in the sport drafted and signed a letter — a copy of which was obtained by The Associated Press — that urged FIS President Johan Eliasch to “reconsider your position on CVC’s proposal and to engage promptly in a constructive dialogue with them.”
There were nearly 60 athletes, executives and FIS council members who attached their names to the letter. The list included Olympic Alpine skiing medalists such as Mikaela Shiffrin, Lara Gut-Behrami, Marco Odermatt, Aleksander Aamodt Kilde and Sofia Goggia, along with Olympic freeski slopestyle champion Alex Hall and snowboarder Maddie Mastro. Also on the list was US Ski & Snowboard CEO Sophie Goldschmidt along with council members from Canada, Germany, Norway, Spain, Switzerland and Austria, to highlight a few.
“We disagree that many of the tasks outlined in the CVC proposal have been completed as part of the FIS global strategy,” read the athletes/executives letter, which was sent last Friday. “While there have been improvements in the digital area, there has been a notable lack of progress in most commercial, marketing and product development areas that are critical to grow our sports. This includes growing prize money and other improvements for athletes, which we know is becoming more of an issue for them, especially for certain disciplines.”
FIS is looking to make Infront Sports & Media its media rights partner. The organization hopes to centralize its international media and broadcast rights.
On Tuesday, FIS addressed the situation in a statement, saying, “The letter, which has since been circulated in the media, suggested that FIS dismissed a compelling offer from CVC for the media rights of ski and snowboard competitions without proper consideration due to the centralization process of international broadcast and media rights with Infront. This claim is false.”
It clarified that, “CVC’s proposal was unrelated to the centralization of media and broadcast rights. It was an investment proposal for the creation of a joint venture to manage all commercial rights associated with FIS and its member federations."
FIS said Eliasch met with CVC representatives. Eliasch is among the candidates campaigning to take over for Thomas Bach as the next president of the International Olympic Committee.
“If raising capital becomes necessary, FIS would engage a financial advisor to conduct a transparent process, ensuring the best possible terms," FIS added. “Currently, FIS is well-capitalized and does not require additional funding to execute its strategic plan.”
CVC has more than 25 years of experience investing funds in sports, media and entertainment projects. Its portfolio of former and current investments counts Formula 1, MotoGP, the French Football League, rugby, volleyball, cricket and the World Tennis Association.
The athletes and executives who signed their names to the letter addressed to Eliasch want to see more conversations take place. They want more transparency in negotiations.
“We would request that there is a pause in fully finalizing the Infront agreement until there is a proper discussion with CVC (and others as appropriate),” the letter read. “We would then expect that the options, plus pros and cons of each are then thoroughly discussed with the Council before a final decision on how best to move forward is made.
"To reiterate, we generally are all for centralization, but understandably want to ensure that the agreement we potentially enter into is the best one strategically and financially for all stakeholders.”
