LONDON: The UK-based venture capital firm, 23 Capital announced Tuesday their investment in SRM Sport & Entertainment, a commercial rights business which unlocks value for international rights holders across sport, music, television and live entertainment.
The investment firm made headlines in December 2018 when it funded OTRO, a unique and innovative digital platform for football fans that curates and showcases content exclusively by the world’s top players in the sport such as Lionel Messi, David Beckham, Zinedine Zidane, Neymar Jr. and Luis Suarez. Several UK news agencies had reported that the deal was finalised for 50 million pounds ($63.6 million).
This partnership with SRM Sport & Entertainment represents one of 23 Capital’s initial investments for 2019 and delivers direct synergies for both businesses. SRM, co-founded by two senior executives with rights ownership backgrounds, Judith Griggs (ex-Formula One), and Charles Garland (ex-Syco and 19 Entertainment), has direct experience in handling high value and complex transactions in the industry, which makes it a natural fit for 23 Capital.
23 Capital lends across multiple asset classes including highly visible and predictable IP cash flows including broadcasting rights, music royalties, licensing agreements and sponsorship. Since its inception in 2014, 23 Capital has deployed and advised on over $2.7bn of transactions.
As investment in these sectors continues to gain pace, and commercial rights are disrupted by new consumption trends and technological advances, SRM Sport & Entertainment will work with 23 Capital to deliver significant value to its clients.
SRM Sport & Entertainment offers unrivalled capability for rights holders, enabling them to maximise the value and revenue from their commercial rights portfolio. It delivers this through three key business pillars; consultancy, rights representation and rights creation. The company has a significant track record of international success with top tier properties – expertise that has led to SRM working with rights holders across Europe, USA, the Middle East and Australasia.
23 Capital’s investment will see it support SRM’s ongoing growth, with SRM advising on select 23 Capital projects. SRM has also announced the appointment of Mark Brittain as its inaugural CEO, who moves from his role as chief commercial officer at Gfinity plc, a leading eSports business and the only AIM listed company in the sector.
23 Capital co-founder Stephen Duval stated: “The digital revolution continues to transform the sports, music and entertainment industries and SRM Sport & Entertainment’s experience of working with rights holders is not only invaluable but sits perfectly alongside 23 Capital’s specialist sector knowledge. We are delighted to be working with SRM and look forward to building on the opportunities presented by growth in the content and licensing of these industries.”
SRM co-founders Griggs and Garland added:, “SRM is delighted to partner with 23 Capital. Their portfolio of investments in the sports and entertainment sectors plays directly to SRM’s strengths across commercial rights consultancy, representation and ownership. We look forward to creating a combined centre of excellence that will benefit both 23 Capital and SRM businesses.”
