Industry News
The International Ski and Snowboard Federation (FIS) recently received a proposal from CVC Capital Partners on November 30, according to an article by Fast Company. The proposal, titled “Project Snow,” offered an approximately $420 million investment in exchange for a 20% shareholding in the commercial rights to FIS’s snowboarding and skiing. This offer was rejected by the Federation days later in a letter stating that it was “very well capitalized and has no current need for further funding to help to deliver its strategic plans.”
The rejection was met with frustration by many prominent athletes in skiing and snowboarding, who drafted and signed a letter imploring FIS President Johan Eliasch to “reconsider your position on CVC’s proposal and to engage promptly in a constructive dialogue with them.”
The letter was signed by many athletes, including Mikaela Shiffrin, Lara Gut-Behrami, and Alex Hall. U.S. Ski and Snowboard CEO Sophie Goldschmidt also signed, along with council members from countries such as Canada, Germany, Austria, and Switzerland. The letter highlights the lack of progress FIS has faced in the commercial, marketing, and product development areas. The letter also states that prize money and other improvements are becoming “more of an issue” for the athletes.
On December 10, FIS issued their response to the athlete’s call with their own statement and letter. In the letter, the Federation said it was “well capitalized” and that the proposal “lacked essential details, including valuation, strategic plans, and governance frameworks.”
CVC Capital Partners is one of the largest private equity firms in the world. Headquartered in Luxembourg, CVC has proven success in the sports, media, and entertainment industries. The firm has worked with organizations such as La Liga, Formula 1, and the Women’s Tennis Association (WTA). Their proposal, they argued, would make snow sports more commercially viable and globally appealing.
The CVC proposal came just as FIS finalized the centralization of media and broadcast rights, which was approved by the FIS Council in April 2024. This centralization comes as an exclusive agreement with Infront, a sports and media marketing company based in Switzerland. Infront has previously worked with FIFA, the Premier League, the NBA, and other sports organizations.
In their letter, FIS athletes urged FIS to pause its agreement with Infront in order to have transparent discussions with CVC. However, FIS remained firm in its decision to go with Infront. This caused tension between FIS and its athletes, as the athletes wanted FIS to weigh the pros and cons of both Infront and CVC before coming to a decision.
Infront Sports & Media has found itself on the end of various criticisms. Infront CEO Philippe Blatter is the nephew of former FIFA President Sepp Blatter. In 2015, Sepp Blatter was given a 90-day suspension from FIFA and later resigned as president. In 2021, he was formally charged for fraud and falsifying documents, but was acquitted 8 months later. Sepp Blatter also awarded Infront the TV rights in various Asian countries for the 2018 and 2022 FIFA World Cups. These controversies left a sour taste in the mouths of FIS officials and athletes who wanted to explore options with CVC Capital.
To make matters more interesting, Infront was purchased by Chinese super conglomerate Wanda Group in 2014 for $1.2 billion. The Wanda Group, headquartered in Beijing, has faced past criticism for missed payments, debt issues, and financial health issues.
There is no doubt that many FIS athletes feel as though they have been shorted. While the decision-making by FIS has been questioned, there is no indication that President Eliasch will have any change of heart. As the 2024-25 ski season starts to get into full swing, it will be interesting to see how new partnerships change FIS.
