OTT sports platform, DAZN is looking to secure its financial future. The company’s owner, Len Blavatnik is exploring options to raise funds for its business, which has significantly suffered as a result suspensions and delays of major sports around the globe. Blavatnik is said to be hoping to sell an equity stake but is also considering an outright sale of the business. The group is reported to have recently reached out to large media companies about an investment, but have received little interest yet. The companies that were asked are said to include Liberty Global, the media group that owns Formula One, and is a shareholder in the Formula E electric motor racing series.
The London company has spent billions for the rights to live sporting events, including Champions League football, FIBA basketball, and high-profile boxing bouts. Despite that, it has seen an increasing amount of subscribers cancel their recurring monthly payments. DAZN has also sought to defer payments it owes to various sports leagues, citing the lack of live-action. Blavatnik is exploring ways to inject new funds into the business, reports the FT, with the sale of an equity stake the preferred option. However, an outright sale would also be considered, the report added.
In 2018, the company sold a 10% stake to the Japanese advertising giant, Dentsu for £300 million during a time which it was valued at £3 billion (€3.3 billion). Research group Enders Analysis has estimated DAZN’s financial commitments on securing sports rights total at least £3.7 billion. In recent weeks, the group has approached media companies over a potential investment, including Liberty Global, but as yet has reportedly received little interest in a deal.
Among leading sports broadcasters around the world, DAZN has been severely impacted by the sports shutdown. It has been particularly susceptible to the financial implications given its sports-only model and absence of long-term subscriber contracts or quad-play model. At the end of March, it began to inform sports rights-holders that it would not make its next rights fee payments for any content that han't yet been delivered. 2,600 members of the staff were furloughed. The measures were put in place as DAZN looks to survive the crisis and revive the business later this year.
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