Global Sport Group launches $3.15 billion debt finance to achieve sports acquisitions

When a sports investment group such as GSG undertakes a financing initiative, particularly of this scale, there will be important legal considerations, which extend across the world of debt and equity financing. 

Debt and equity financing are not decisions that should be undertaken lightly. They can have vast challenges and specialist advice should be sort. Sports organisations looking at debt and financing options should consider these challenges and obtain the necessary legal advice where required. 

1.    Complex structuring

Financing of this scale often involves a mix of mechanisms and documents including term loans, revolving credit facilities, and high-yield bonds alongside the private equity investment. Each area requires clear legal documentation and precise drafting, whether that be loan agreements, security documents or equity subscription documents. Tailoring this drafting not only to the client’s needs but also to the complex area of sports organisations is a key area for legal advisers to understand.   

2.    Security and Intercreditor Agreements

If assets are spread across numerous leagues and jurisdictions, robust security agreements will likely be in place to protect lenders and investors. This is common in the sports sector. Intercreditor agreements become critical to define priority rights between debt holders, equity holders and original investors. Drafting these agreements requires precision, with commercial considerations and adherence to legal requirements.

3.    Exit and restructuring strategies

The inclusion of private equity partners in many transactions suggests future exit intentions. Legal frameworks must anticipate these exits, ensuring flexibility for refinancing or restructuring without breaching existing covenants or investor rights. Legal advice will also be required on the eventual exit, whether that be securing and protecting the exit through mechanisms in the share purchase agreement or a subsequent reinvestment. 

At Russell-Cooke, we understand the complexities of large-scale financing and cross-border acquisitions. Our team provides expert legal advice on structuring debt and equity transactions, negotiating intercreditor agreements, and ensuring compliance with multi-jurisdictional regulations. We also assist with acquisitions, governance frameworks, and commercial contracts - helping clients navigate the legal challenges of major sports investments with confidence.

Other sport organisations might look to raise equity and debt finance in order to support their own strategic goals, Russell-Cooke has the skillset in order to assist you.

 Thomas Clark is a partner in the corporate and commercial team, advising clients on a wide range of matters including acquisitions and disposals, business reorganisations and restructures, shareholder agreements and articles of association as well as corporate governance and risk. Oliver Ward is a legal assistant also in the corporate and commercial team.