Table of Contents

• Sports group backed by Saudi wealth fund seeks sta …

• Bitcoin’s potential role in financial portfolios i …

• Top Tickers

• Bundesliga’s bold step into the U.S. sparks contro …

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Sports group backed by Saudi wealth fund seeks stake in European basketball

EuroLeague is looking to sell minority holding worth €1bn, but PIF’s SURJ firm faces competition from BC Partners

The sports investment firm owned by Saudi Arabia’s Public Investment Fund has entered the sale process for EuroLeague, as Europe’s top basketball competition seeks to sell a minority stake at a €1bn valuation.

SURJ Sports Investment, which is owned by the $925bn PIF, may invest alongside private equity group General Atlantic in its bid to buy a stake in EuroLeague, according to people with knowledge of the details.

The competition is fierce. BC Partners, another private equity firm, is also eyeing a stake, and the sale process—led by investment bank LionTree—has attracted significant interest.

SURJ Sports Investment, led by Danny Townsend, aims to expand PIF’s growing sports portfolio, which already includes stakes in football clubs and the Professional Fighters League. If successful, this deal would mark PIF's latest move to diversify its global sports holdings.

However, the EuroLeague lags behind the NBA in global reach, despite impressive growth in its 2023-24 TV audience (up 27%) and online platform users (up 46%).

As private equity continues to flood the sports market, valuations are rising fast. But with this deal still in its early stages, nothing is set in stone.

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Bitcoin’s potential role in financial portfolios is increasingly acknowledged

Why Bitcoin’s appeal to investors lies in its detachment from traditional risk and return drivers

As we move towards the final quarter of 2024, the outlook for Bitcoin remains cautiously optimistic. In general, cryptocurrencies soared this week after the U.S. Federal Reserve slashed interest rates by 50 basis points and the Bank of Japan left its rates unchanged. Both Bitcoin and Ethereum gained close to 5% over the past seven days, while the combined crypto market cap is up 8% from its mid-week low.

With institutional interest growing, evidenced by BlackRock’s research and SEC’s recent approval for listing and trading options tied to a bitcoin ETF, and central bank policies providing periodic support, Bitcoin’s path forward seems more secure than in previous years. However, Bitcoin still faces considerable challenges, particularly in breaking through key technical resistance levels and navigating an increasingly complex derivatives market.

As the first decentralized, non-sovereign asset to gain global adoption, Bitcoin offers unique diversification benefits in a portfolio. BlackRock's research highlights how its low long-term correlation to traditional assets like equities and bonds makes it stand out. Although Bitcoin has shown short-term volatility, its fundamental risk-return drivers remain distinct from other asset classes, particularly during times of geopolitical tension and economic instability.

In the face of rising global debt and concerns over U.S. fiscal sustainability, Bitcoin’s decentralized, fixed-supply nature may position it as a hedge against currency debasement and systemic risks. Despite its high volatility, BlackRock’s analysis suggests that Bitcoin's role as a store of value could become increasingly relevant in the evolving financial landscape.

For investors seeking to diversify risk, Bitcoin’s ability to remain uncorrelated with traditional assets may offer valuable protection, but it’s crucial to approach with caution given its still-immature market structure and regulatory uncertainties. Over the long term, Bitcoin’s adoption trajectory is likely to be driven by the intensity of concerns over global monetary stability, geopolitical stability, U.S. fiscal sustainability, and U.S. political stability. This is the inverse of the relationship that is generally attributed to traditional “risk assets” with respect to such forces.

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Bundesliga’s bold step into the U.S. sparks controversy

DFL and Relevent Sports agree to long-term partnership focused on strengthening the Bundesliga in Americas

The Bundesliga’s recent partnership with Relevent Sports aims to expand German football’s presence in the U.S., starting with a pre-season tournament next summer. This move highlights the league’s need to close the gap with the Premier League, whose U.S. broadcast deal dwarfs that of the Bundesliga. Yet, this decision has sparked heated debate in Germany, where football culture remains deeply protective of its traditions.

The controversy stems from a fear of commercialism. German football, governed by the ’50+1 rule,’ ensures fans retain control of clubs. Unlike in England, where commercialization has skyrocketed, German fans have been vocal against similar moves. The resistance was most evident last year when fan protests derailed a €1bn private equity deal with CVC.

While the Bundesliga insists regular-season games won’t move abroad, the partnership has raised concerns about the league’s future direction. German football’s cultural conservatism stands at odds with the realities of global business, creating a delicate balancing act for the DFL.

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Last but not least, the Philadelphia 76ers have secured their franchise cornerstone, Joel Embiid, with a staggering max contract extension worth $193 million, keeping him with the team until 2029. This deal brings the total value of his contract to nearly $300 million, making it one of the richest in NBA history.

Joel, the reigning NBA MVP, has been the heart of the Sixers since being drafted in 2014. With Joel set to earn up to $69 million in the final year of his contract, the Sixers are betting big on his future. However, this move comes with risks, as the star center has battled injuries throughout his career. Nonetheless, the upside of keeping a player of Joel’s caliber, both in skill and marketability, far outweighs the potential risks – in my opinion…

Have a great day!

Irg

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