Outside investment will help British Cycling “supercharge” its growth in the events space and significantly contribute to the governing body’s commercial success, chief commercial officer Darren Henry has stated.
Last week, the national body launched a new commercial arm – British Cycling Ventures (BCV) – and outlined plans to bring in private equity investment, with Oakwell Sports Advisory hired to manage the process.
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Henry has been appointed managing director of BCV, having led the federation’s commercial operations since joining in 2021.
BCV will oversee all commercial activity across the British Cycling Group, with a particular focus on events.
The new entity will also absorb the existing British Cycling Events subsidiary, bringing every commercial strand under one umbrella.
British Cycling believes the opportunities in events will allow the organization to grow its commercial revenues and views investment as a key component to fulfilling its financial targets.
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By GlobalDataIn an interview with GlobalData Sport (Sportcal), Henry said: “Investment will help to supercharge our growth, especially in relation to our events. The investment is really focused on the events, which we see as a significant contributor to our commercial success and commercial growth.
“We can get commercial partners on board within that space, as well as diversifying revenue streams as part of that, whether it be hospitality, ticketing, etc.
“The other piece that we are developing quite significantly is around digital products. We've been in a period of modernization and a transformation of the organization in recent years, and Elixirr, our digital transformation partner, has been a key part of that.
“In doing that, we have a much better understanding of who our audience is, and equally, have much better digital systems and infrastructures in place. Ultimately, it means that we can have better digital content, improved events platforms and tools for fans and riders.”
Oakwell is acting as British Cycling’s exclusive advisor to identify and secure outside investment, with the process already underway.
Private equity investment has been rife in sports since the Covid-19 pandemic, with the likes of CVC Capital Partners, Arctos Capital Partners, and Clearlake Capital among the most prominent firms in the market.
A deal with an investment firm could potentially see British Cycling give up a stake in its new commercial arm, but despite early interest and talks, Henry insists the specific nature of any deal is yet to be discussed.
He stated: “The process has begun, and there's been some encouraging signs and interest already. We're enthused about how that process has started. The structure of how we work with a partner is still something that we're working through in conjunction with Oakwell.
“Depending on the partner or partners that we work with, then we'll be able to make a call on that (selling a stake). Finding the right partner is incredibly important as we go into this process. There's no better time [to invest].”
BCV’s strategy will initially focus on expanding and elevating its events portfolio, from track cycling to cyclo-cross and BMX freestyle.
The governing body also stated that it is “laying the foundations” for future non-event commercial opportunities, which will be launched ahead of Britain hosting the Tour de France’s Grand Depart in 2027. These will include partner platforms, digital ecosystems, and new revenue models.
It is claimed that around 3.5 million spectators attended when the Tour de France last staged its Grand Depart in the UK in 2014, and British Cycling is expecting up to 10 million for 2027 across both men's and women's versions of the race.
“It's our duty to harness and make the best of that opportunity,” Henry said. “In establishing a wholly owned commercial subsidiary of British Cycling, it means that we can capitalize on these greater commercial opportunities.”
The UK body does not own the commercial rights to the Tour de France but will look to use the experience to improve the quality of its own events and widen its audience.
British Cycling has ambitions to launch a track “super league” event across major UK cities such as London, Manchester, and Glasgow, and revamp the track cycling model.
Henry revealed that the organization is looking at taking inspiration from the successful Indian Premier League Twenty20 cricket tournament and The Hundred in the UK, “with a potential franchise model that we would explore as part of that.”
He added: “Events are a major opportunity to grow income and visibility for the sport. It's a combination of strategic factors, but ultimately, how we grow income, commercial revenue, visibility for the sport, and create more opportunities for riders and fans, and for us to grow the overall fandom of cycling within the UK.
“We want to look at how this can allow us to become more financially sustainable, and if we can secure the investment, we'll deliver much bigger and better events than we've ever done before.”
Last year, the British Cycling Events arm agreed a long-term strategic partnership with IMG to support the growth and sustainability of the federation’s events portfolio and to generate new revenue to reinvest in the sport.
The six-year deal involves IMG providing its expertise in production, media rights distribution, commercial partnerships, digital marketing, and advisory services for the domestic Tour of Britain events.
Additionally, IMG is providing strategic advisory services for British Cycling Events’ other events and operations.
British Cycling claims to have increased its commercial revenue by 286% since 2023, including through its long-term lead partner, Lloyds Bank, as well as partnerships with oil and gas giant Shell UK, Elixirr, and Italian clothing brand Alé.
The major, long-term tie-up with Lloyds has been called one of the largest such commercial deals in UK sport for a national governing body, worth a reported £20 million ($26.7 million).
Henry is targeting further uplift in revenues across multiple areas as part of the governing body’s long-term vision.
He said: “The success of this is predicated on commercial growth, and that means we are increasing our asset base and our IP by having several new events and initiatives that we didn't have before.
“With that, I would expect us to significantly increase our commercial revenues, and that's beyond commercial partnerships; it’s other revenue streams that will inevitably open up as well.”
