Women’s Tennis Gets $150 Million Investment From CVC Capital

Irene García Pérez, Bloomberg News

MELBOURNE, AUSTRALIA - FEBRUARY 01: Daria Gavrilova of Australia meets Serena Williams of The United States of America at the net following their Women's Singles Round of 32 match during day two of the WTA 500 Yarra Valley Classic at Melbourne Park on February 01, 2021 in Melbourne, Australia. (Photo by Jack Thomas/Getty Images) , Photographer: Jack Thomas/Getty Images

(Bloomberg) -- CVC Capital Partners is adding yet another sport to its portfolio with a minority stake in Women’s Tennis Association.

The WTA announced on Tuesday that the private equity firm will be its commercial partner and invest in areas like providing fans with more access to the sport, player profiles and digital platforms. CVC will invest $150 million for a 20% stake in a new vehicle called WTA Ventures, a CVC spokesman said.

CVC has invested in a range of sports, including rugby, Spanish football and volleyball, often focusing on the media and broadcasting rights linked to various competitions. The WTA will retain full regulatory and sporting responsibility for the women’s game, it added in the announcement.

The partnership has the support of the players and tournaments, with changes to the Tour calendar planned that will make it easier for fans to follow their favorite players through the year, according to the statement.

While the four major tennis tournaments now have equal pay for the winners regardless of gender, the end-of-season ATP Finals still heavily rewards the men over the women, with last year’s event paying out $14.75 million in prize money for men versus $5 million for women.

The WTA, run by Steve Simon, has lost revenue after it suspended its lucrative Chinese tournaments, following concern for tennis star Peng Shuai that prompted the United Nations Human Rights Office, the White House and high-profile sports stars including Serena Williams to issue statements demanding China clarify her whereabouts.

“The ambition is to materially grow women’s tennis – its profile, value, and prize money - for the benefit of the players, tournaments, and its fans,” the WTA said.