Dallas, Texas--(Newsfile Corp. - September 7, 2022) - CMG Companies, the US-based multi-unit franchising group, is setting out to carve a path for investors from minority backgrounds in a sector that has historically struggled with under-representation. The firm, which is led by a close-knit team of six principals with Indian heritage, is hoping to open the door for other ethnic minorities to become minorities of a different kind - namely, minority-stakeholders in a range of successful companies. It is aiming to achieve this through its series of sports-franchise investments.
In 2016, only 7% of all private equity firms in the US were women - or minority-owned, while a 2021 study highlighted that just 1.4% of the $82 trillion-plus in US assets were managed by investment firms owned by women or people of color. CMG is striving to improve these figures by continuing its expansion across the world of multi-unit franchising.
A key way in which CMG is increasing the visibility of minority-owners within the franchising space is through its array of investments in sports franchises. In 2013, the sports division of the firm, CM Sports, purchased the Caribbean Premier League (CPL) T20 cricket franchise, the Jamaica Tallawahs.
After having sold this team in 2017, CM Sports is now a minority-stakeholder of both the Barbados Royals, and their twinned team in the Indian Premier League (IPL), the Rajasthan Royals. In 2021, the IPL reached over 400 million viewers per game in India alone, and has long been established as the most popular cricket league in the world. Past-winners, Rajasthan Royals, boast England's cricketing superstar, Jos Buttler, along with Indian national team stalwarts, with top-order big-hitter Sanju Samson and maverick all-rounder, Ravi Ashwin, as part of their line-up.
Senior officials from the CM Sports team underline that the CPL is also growing into an increasingly prominent platform for them to work towards their overarching, minority-elevating mission. In 2021, CPL received over 500 million viewers from around the world, per season, with T20 cricket emerging as the most popular format of the sport globally, compared to longer versions of the game, such as Test-Match cricket or One-Day Internationals.
As part of its announcement, CM Sports also revealed its investment in the Paarl Royals franchise, which will play as part of the new South African T20 cricket league, which launches in January 2023. The player auction is being held on September 19th, with the Royals already having secured the services of Buttler once again. Getting into T20 franchise leagues is fast becoming a primary objective for cricketers around the world, with some even prioritizing these lucrative competitions over national games.
Minority-shareholder deals are growing in popularity, and involve funding being channeled into a franchise in return for a stake below 50%. As these gain prominence, CMG is hoping to utilize the increased accessibility of these deals - compared to majority-shareholder deals - as a means of boosting the representation of minorities across the industry.
"We are excited to be establishing CM Sports as key players in the sports-franchising world. It gives us great pride to be able to contribute towards the success that teams such as the Rajasthan Royals and Barbados Royals are enjoying, and to see how they continue to bring great joy to millions of spectators worldwide. In blazing a trail in this industry, we hope to leave behind a clearer path for other people from under-represented communities that are aspiring to make their mark on the franchising sector," concludes Manish Patel, CMG Principal and leader of CM Sports' Franchise Platform.
Name: Al Bhakta
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