OTT sports platform DAZN is trying to secure its financial future, with owner Len Blavatnik exploring options to raise funds for a business that has significantly suffered by the postponement of major sports around the globe.
The London company has spent billions for the rights to live sporting events, including Champions League football, FIBA basketball and high-profile boxing bouts. The pandemic has seen some subscribers pause 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.
Just two years ago, the company was valued at £3 billion (€3.3 billion) when it sold a 10 per cent stake to Japanese advertising giant Dentsu for £300 million. 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.