Corporates Nike, Epic Games and Fenway Sports Group (FSG) have bought a ‘significant’ minority stake in US-based sports entertainment studio SpringHill Company at a $725m valuation, Forbes reported yesterday.
Sports equipment producer Nike, computer game producer Epic Games and sports team owner FSG joined investment firm and FSG affiliate RedBird Capital Partners, which led the round, and University of California’s UC Investments vehicle.
Founded by basketball professional LeBron James, SpringHill produces a range of entertainment content across mediums like television, film, gaming and audio. It also sells fashion and apparel through its Uninterrupted brand.
James and his business partner, SpringHill chief executive Maverick Carter, have retained their controlling stake in the business following the deal.
The deal is poised to fuel a major expansion for SpringHill, with Nike reportedly tapped to collaborate on licensing deals in fashion and commerce, Epic Games to expand its presence in the gaming sphere and FSG, which owns the Boston Red Sox baseball franchise and Liverpool Football Club, will aid in its international expansion.
The company had raised $100m from production company Sister, Guggenheim Partners, UC Investments and SC Holdings in June 2020, five years after entertainment group WarnerMedia invested $15.8m in Uninterrupted. Epic Games had reportedly approached to buy the entire company but was turned down.
Maverick Carter said this week: “We started this company with the tagline ‘More Than an Athlete’ which still defines everything we do to this very day. We are an incredible team of athletes, artists, writers, designers, musicians and countless other creators.
“With this new group of investors who are the very best in their respective industries we are going to be able to empower our community and every creator to do their most inspiring work and achieve their most ambitious dreams.”
