Swedish private equity giant EQT is closing in on a deal to buy a controlling stake in the Melbourne Storm, a move that would make the NRL club one of only a handful in the league under private ownership. The deal, not yet signed, would value the Storm above $200 million, with EQT taking the vast majority of the business while existing owners roll some of their equity into the new structure. The club had been looking for a cashed-up investor to bankroll a couple of capital-intensive projects, a redevelopment of its headquarters next to AAMI Park and a new athlete development facility, and EQT looks to be that investor.
It fits a pattern for EQT, which has been building out a sports and education portfolio that includes Fitness Passport, the ATP Tour and IMG Academy, the Florida-based athlete development institution it bought for $1.77 billion two years ago. The pitch leans heavily on the NRL's new $5.3 billion broadcast deal, which is expected to flow straight through to the club's bottom line.
It's been a big week for EQT in Australia more broadly. The same firm has also tabled a $9.4 billion takeover bid for Cleanaway Waste Management, offering a 32.1% premium and securing a nine-week exclusivity period with the board's in-principle backing, a deal that still has to clear the ACCC and FIRB before it's close to final. Two deals, two completely different assets, but the same buyer behind both. Worth watching what the Swedish private equity giant does next.
