Investment funds have a strong presence in European football: they are already involved in a third of clubs

Arctos is one of the most prolific investors in professional sports in the US, betting on the Golden State Warriors (NBA), Boston Red Sox (baseball), Aston Martin (Formula 1) or Liverpool FC in soccer. But he is not alone in this, he is far from it. It is a developing sector. A recent report stated: one third of football clubs between five major European leagues They are already partially or completely in the hands of private equity funds.

The football landscape has changed with the emergence of international societies that view clubs as a business. When they found themselves in need of money after the devastation of the epidemic, they found a lifeline in the financial muscle of big capital. In a way, its existence grew with the multi-clubs that are the new phenomenon of the beautiful sport. An example would be City Football Group, which owns Manchester City, Girona and 11 other clubs. There are a few more.

Television rights

This attack on the football industry started with the Premier, which always mobilizes big names, and has already reached Spain. The biggest purchase in football history took place in England: ChelseaIt was bought by an American company last year for 5,000 million Clearlake Capital and financier Todd Boehly.

If we talk about another major operation that took place recently in September, RedBird Capital PartnersAnother sports mastodon completes its acquisition AC Milan for 1,200 million. It is now headquartered in Miami and shares are owned by the 777 Partners fund. SevilleGenoa and Standard Liege are about to take over Everton approximately 700 million.

In Spanish football, as has been said, the clutches of large private groups have also been noticed. Leaguesigned an agreement with CVC Capital Partners, a British venture capital institution, for approximately 2,000 million euros in exchange for the use of some of the television rights. The opposition of Barça and Madrid was famous. The Bundesliga confirmed a deal similar to LaLiga this Friday.

These funds didn’t just go into the First League teams. Agreements were reached with long-term projects in the Second A and even the First RFEF organizations. Zaragoza, Alcorcón, Leganés, Castellón or Algeciras might be some cases. But the most notable appearances took place at two major Spanish football clubs through the purchase of specific assets or loans for big-budget projects.

What’s this Joan Laporta It was popularized as leversThe ‘cash’ was later used to sign football players. For example, the sale of 25 percent of television rights for 25 years. Sixth Avenue PartnersA Californian investment fund that participates in the NBA’s San Antonio Spurs, which also operates in Real Madrid through the operation of the new Santiago Bernabéu.

Laporta also shut down macro finance. Renovation at Camp Nou It is thought that the majority of the nearly twenty investment groups whose identities Barça keeps secret are American. However, it aroused interest with its partial sale to Barça Studios and German fund Libero. Despite the deadlines, your money is not visible.

Why this impulse?

So what are these societies looking for in football? He recently announcedFinancial Times’ For private equity investors, football clubs represent valuable assets due to their sustained growth trajectories. According to a report prepared by Football ComparisonThe value of Europe’s 32 most prominent clubs increased by 96% in the seven-year period between 2016 and 2023; This is a figure that is difficult to compare with any other industry.

This interest is driven primarily by the value of television rights and anything content-related for platforms, from docuseries to digital formats like NFTs, which is still an area with growth potential. Without going any further, the Premier League announced a few days ago that it had signed a new television deal worth a record 6.7 billion pounds (7.8 billion euros) over four years, starting with the 2025-2026 season.

Marc CiriaThe aim of these funds is “to take a significant share of a club and, above all, to drive the entertainment part,” explains the financier and chief executive of Diagonal Asset Management. Since it is limited, increase consumption around this club and from here. 7 to 10-year life funds first increase their value and then go on sale again.

Create content

Gerry Cardinale, founder of RedBird Capitalacquired AC Milan with the participation of its owner, Yankee Global Enterprise. legendary New York Yankees and LeBron JamesThe NBA star confirmed part of Ciria’s argument in an interview with Corriere della Sera. “Football clubs are content creators and have enormous potential to achieve their true value,” he said.

European football, with the exception of some leagues such as the Bundesliga, does not limit the participation of these funds, as, for example, the NBA or the NFL, which makes it more attractive in their eyes. His entry was sometimes thunderous, as at Chelsea, and there were more than a billion transfers, but it must be said that there were no successes. PSG, on the other hand, hopes Arctos will provide a global boost to its brand, as well as helping improve some very lacking accounts. More than 700 million in red in three years. And I don’t even smell the Champions League.