The battered internet sports sector is expected to receive a much-needed fillip today when Sports.com confirms that it has closed a £9.3m funding round.
Existing investors, including financier George Soros, sports marketing agency IMG and Nasdaq-listed Sportsline.com, have agreed to put up the cash despite difficult market conditions and concerns about the long-term financial viability of sports-driven dot.coms.
Sports.com, which claims to be Europe's most visited sports website, believes that the cash will carry it through to the profitability forecast by the middle of next year.
Sport was expected to be an enduring favourite with internet users, generating significant revenues for companies with exclusive content that could offer advertisers a large audience of affluent young males.
Gavin Chittick, chief financial officer of Sports.com, said the opportunities remained plentiful despite the recent difficulties experienced by rival Sportal and the share price decline of 365 Corporation.
"When you look at who has put money into us, they're not exactly mugs," Mr Chittick said. "These people have put up hard cash in an uncertain economic environment because they know enough about our plan and our progress to have liked what they have seen."
Ramez Sousou, managing partner of Soros Private Equity Partners, said: "Sports.com has built great content, spent carefully and partnered wisely to become Europe's clear leader in sports media and betting."
Sports.com raised $52.5m (£37.5m) in January last year and now generates about 120m page views per month. It has considered a stock market flotation but market conditions argue against it.
The new funds will be used to expand Sports.com's nascent betting service and develop services for next-generation mobile phones.
"Wireless remains a huge opportunity for us," Mr Chittick added. Vodafone is seen as a likely partner.
Sports.com has cut about 70 people from its 270 staff over the past few months but says that present advertising revenues are "healthy" and appear to be up on the previous quarter.
