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Football investors currently troubled by market turmoil



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It is set to be a packed weekend for sport, with European club football returning after the international break, formula 1 hitting the grid in Singapore, and Minnesota Vikings lining up against New Orleans Saints in London for the start of NFLinternational series.

Off the pitch, things look just as busy, with several new football investment deals in Italy, England, Germany and beyond.

We have a double dose of European football in this week’s scoreboard, with a look at how the recent turmoil in currencies and interest rates could change the outlook for US investors to park their dollars on this side of the Atlantic. . We also trace the latest round of talks between private equity investors and BundesligaWhich is struggling to gain fans outside Germany and in the market for help.

Must read- Josh Noble, Sports Editor

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Everton: in sport © Matthew Childs / Action Image via Reuters

Can anything slow the flurry of investment in European football clubs?

Farhad MoshirioBritish-Iranian owner of Everton, In advanced talks to sell English Premier League Club to American Real Estate Investors Masik Kaminsky, Meanwhile, Bloomberg reported this week that watfordA club below the top flight is weighing a division, one equity increase, while American investors bill foley is reportedly hoping to seal a deal for AFC Bournemouth In the coming days. And it seems that not every club that is yet part of a multi-club group is trying to become one.

The latest talks show investors aren’t just eyeing the biggest global brands after a £2.5bn auction. Chelsea FC and sales of €1.2bn AC Milan this year.

The wave of investor interest in European clubs has not been affected by the general market and economic conflict. In the UK, the fall of sterling against the dollar is adding to the firepower of US bidders.

“Weakness in Pound Isn’t the Determining Factor, It’s Another Checkmark in the Short Term” [and] Positive for US buyers in the UK,” said Gordon Saint-Denis, head of sports finance at private credit asset manager Monroe Capital. “Rich individuals see long-term appreciation: These teams go up in value, driven primarily by increases in media rights.”

However, even as US investors are excited by a favorable exchange rate, interest rates – and therefore the cost of borrowing – are rising. This puts pressure on investors who depend on debt for their investments. And there are signs that the deals may be difficult to complete.

People close to the Everton process said negotiations have been complicated by recent financial market volatility in the UK, while €800mn acquisition of Olympique Lyonnais By diamond palace co-owner john texter And authentic brand founded by Jamie Salter has been pushed back.

Lyon said it awaits confirmation that the existing lender will maintain the financing arrangement upon the change in control. The club expects “all lenders to agree before the closure”. In addition, Textor and Salter’s Eagle Football Holdings Awaits a “definitive financing document” for the loan on which it has agreed to fund the acquisition. The deal was to be completed on Friday.

Still, one asset manager with holdings across the game remained bullish this week. “It is an attractive asset class,” he said. “We like the direction we’re going, it’s less correlated” [to other assets such as stocks] And it’s recession resistant.”

As markets and economies suffer, investors will soon discover just how uncorrelated their sports holdings really are.

German Bundesliga puts private equity back on the agenda

Private equity gets a replay with German football | © Sascha Schuermann / AFP via Getty Images

Bundesliga Is talking to investors Again. A year after the clubs voted against a private equity deal that cost them about €300mn, a much larger idea is under discussion. Now they’re talking about building a media business that will have TV rights both at home and abroad, with a target valuation of up to €18bn – a similar figure. CVC Capital Partners‘Deal with Spain’ LaLiga,

Why now? Well German football is losing the global battle for eyeballs. Premier League And this Champions League are going ahead. And for those still not full of football, there is always La Liga.

Can money fix the problem? Those pursuing plans in Germany certainly think so. They want more teams to hit the road in the summer, more representative offices in new markets, and a direct-to-consumer streaming platform to give people instant access to matches.

But it looks like an uphill battle. English football and Spanish football have one big advantage: language. They have also been pushing their product overseas over the years, giving them a long start.

Plus they can offer something that German football has lacked – an exciting story to tell. Bayern Munich Has won the last 10 Bundesliga titles. Despite a poor start to the season (they are currently fifth in the table), Bayern remain heavy favorites to make it 11. Spain may lack big clubs, but at least it has some of them.

If smaller clubs get a boost to their spending power, the fresh money could help Germany overcome its lack of competition, but this is an issue that could easily become a moot point in negotiations.

And if you’re a football fan, such as in Cincinnati or Shanghai, how much time and appetite would you have left after the Premier League, Champions League and La Liga excitement heals?

This creates another potential crisis point for negotiations. Alien Expansion Sounds Great – But Where? Clubs like Bayern are eyeing America, with its huge media market, a growing appetite for football, and the World Cup pending in 2026. But English and Spanish football are already big there. Some investors think there are better opportunities elsewhere – in Asia or Africa, where the language factor is less relevant. But it is a very long-term game, and potentially a tough sell for the clubs.

The Bundesliga is a premium product, which helps explain the breadth of interest. But it doesn’t look like an open target for investors.

an invitation:

There’s less than a month to go before us business of sports summit in New York on October 24. Milwaukee Bucks owner Mark Larry and Philadelphia 76ers owner Josh Harris will be among those to give their insights. As a Scoreboard customer, you can claim your free Digital Pass using promo code Premium22 and purchase access to our VIP in-person discussion and drink reception. Register for your pass today,


Lars Windhorst: Wonder-Football © David Swanson / Reuters

  • german financier lars windhorst Hired an Israeli private intelligence company that launched a covert operation to remove the then president hertha berlin football club, according to a lawsuit FT. reported by This week.

  • game streaming service DAZN This week completed the acquisition of smaller rival Eleven Sports. we told it was working back in july,

  • allegation of fraud continue to send shaking via Chess world after champion Magnus Carlson Losing to an American teenager at a tournament in St. Louis ended a 53-game winning streak.

transfer market

Tim WilliamsThe former chief financial officer of Inter Milan is back in football. He was appointed as the Chief Executive this week oxford united After a stint in the investment company tifosi, English league one The side also announced this week that two Indonesian investors had taken control of the club. One of them – Eric Thohir – was the owner of Inter between 2013-16.

final whistle

national football federation is back, which means even by the end of Week 3 some fans are already wishing for a do-over. it was the case buffalo bill Fans at the loss of their Sunday night miami dolphins, in which wide receiver Isiah McKenzie made a strategic error to run down the field with the ball instead of going out of bounds to restart the clock. As time ran out, the Bills’ offensive coordinator Ken Dorsey was caught on the broadcast in his own emotional turmoil, which he later said he would “learn”. catch (or not) result Here,

The scoreboard is written by Josh Noble, Samuel Agini and Arash Massoudi in London, Sarah Germano, James Fontanella-Khan and Anna Nicolau in New York, with contributions from the team producing the Due Diligence newsletter, the FT’s global network of reporters and data. is together. visualization team

cryptofinance Scott Chipolina filters out the noise of the global cryptocurrency industry. Sign up Here

unhedged – Robert Armstrong dissects the most important market trends and discusses how Wall Street’s best minds react to them. Sign up Here

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