Avenue Capital emerges as frontrunner for stake in Serie A media rights venture, sources say

MILAN, Oct 16 - Private equity firm Avenue Capital has emerged as the leading bidder for a minority stake in the company that will hold the international media rights of Italy's top soccer league Serie A, two people with knowledge of the matter told Reuters.

Serie A is exploring the sale of a stake in a company that will hold its international broadcasting, sponsorship and betting rights and last month it received final bids from private equity firms.

Serie A clubs met on Friday for an initial review of the bids, the two people said.

New York-based Avenue Capital is targeting a stake of 10% in the media company for €320 million, the people said, which would put the overall valuation of the venture at €3.2 billion.

Avenue is in the lead despite the fact that some rival bidders have offered to pay more because its offer is structured as a common equity investment, without the protections on future cash flows sought by some of the competitors, one of the two people said.

The person added that Carlyle and Nextalia, which teamed up to submit a joint bid, had offered around €650 million for a stake of roughly 17%, valuing the venture at about €3.75 billion.

The Avenue Capital offer will be examined more closely in the coming weeks by the clubs, the people said, cautioning that there is no final decision on the matter.

Avenue Capital and Serie A declined to comment. Carlyle and Nextalia were not immediately available to comment.

Any deal requires the backing of at least 14 of the league's 20 clubs.

Home to Inter Milan, AC Milan and Juventus, the Italian league has been struggling in recent years to sell its media rights abroad, as broadcasters' interest dwindled due to a crowded fixture list dominated by the expanded UEFA Champions League and the popularity of England's Premier League.

The Serie A international media unit generates sales of around €250 million a year, a fraction of those yielded by Premier League and Spain's LaLiga, according to data from European soccer body UEFA. REUTERS