For American investors eyeing a play in the thrilling world of European soccer clubs, the game plan is taking an interesting turn. The spotlight is shifting away from the big-ticket clubs and zooming in on those with lower valuations, the unsung heroes of the football world.
In a move that echoes a strategic dance, U.S. investors, in particular, are embracing what’s known as the “multi-club model.” This means diving into investments in smaller clubs, those not hogging the limelight but still carrying immense potential. The goal? Grabbing a slice of the global sports market without breaking the bank on deal valuations.
It’s a smart play, especially as heavy-hitting investors, ranging from top-notch U.S. private equity and venture capital firms to formidable global competitors like sovereign wealth funds, intensify their match for ownership.
Charles Baker, co-chair of law firm Sidley’s entertainment, sports, and media group, explains the allure: “In terms of private equity and high net worth individuals, soccer is more of a global sport than almost any U.S. sport. There are huge populations that can be accessed — in both the regions they play in and the world.”
The worldwide fanbase of soccer, coupled with its surging popularity in the U.S., opens up a treasure trove of opportunities. Think lucrative broadcast media rights deals and merchandising – the kind of revenue streams that get investors’ hearts racing.
Notably, clubs like Manchester United, Chelsea FC, and Newcastle are proof that the game is not just about kicks and goals but also about impressive financial scores. A PitchBook report underlines the trend, noting revenue multiples climbing up, with valuations often doubling. In fact, the report concludes that most clubs would command a premium if put up for sale. It seems like the business of soccer is not just a game; it’s a winning strategy for those with the vision to play the field creatively.
