Private Equity News’ Post

Super interesting read about the current state of transfers. One aspect it doesn't cover is the trickle down effect this will have on the non Premier League teams. As a fan of a club outside the top 20, you could rely that in the last few days, as big signings went through, Premier League youngsters would be loaned out as they wouldn't be required for depth. This would then free up Championship youngsters and so on and so forth. But now that pipeline isn't as reliable, focing clubs lower down the pyramisd to consider taking potentially more available players on loan, who may not be the exact fit or quality they want or pay over the odds for older players. We are in a fascinating time with football, there's a transfer bubble waiting to pop. Feels more and more like when rather than if! #football #soccer #transfers #footballfinance

⚽ More than a third—37 of 96—of European football clubs in the "Big Five" leagues this season have financial backing from private equity, venture capital or private debt firms. These investors, whose assets under management have ballooned in recent years, have pushed into the niche asset class at a time when many clubs are in financial straits due to lost revenues during the pandemic. Last year, dealmakers invested €4.9 billion (about $5.3 billion) in Europe's five largest football leagues, up from just €66.7 million in 2018. We created a dashboard to track every connection between Europe's elite football clubs and VC, PE and private debt firms and partners. Check it out here: https://lnkd.in/gQbPaQjp

I love football -- the kind you actually play with your feet : - ) And for professional reasons, I've found the expansion of #privateequity money across different industries, particularly the one I cover, an interesting phenomenon in recent years. So this report/dashboard from PitchBook on the presence of PE money in major European football clubs is fascinating and well done to me. If you have similar interests, definitely check it out. https://lnkd.in/ekJfpdWV

How does American Money control the European Football? ⚽ Let's see how American financial giants like Goldman Sachs and JP Morgan are wielding growing influence in European football through investments and deals. 💵 A club's financial success relies on a three-pronged approach: ticket sales, commercial deals with sponsors, and revenue generated from broadcasting rights. 📺 Player salaries are gobbling up over half of most clubs' income. 💰 With clubs increasingly taking out loans to invest in infrastructure and player acquisition, American banks are wielding more influence American banks (JPMorgan) and private equity firms (CVC) are investing heavily in European football leagues (La Liga) by providing billions of euros in exchange for a share of future TV revenue (over the next 50 years). So, which club do you support? #englishpremierleague #jpmorgan #goldmansachs

It is impressive how sports, and particularly football clubs, are attracting institutional investors like PE and VC firms.   But it is not only football. In late June, private equity firms RedBird Capital and Otro Capital joined forces to buy a minority stake in Formula One team Alpine Racing.   It’s a trend across multiple sports and it shows how the sports industry can be attractive for investors. #sportindustry #dealmakers

24/7 Market News Publishes Report on Public Club Ownership Models Including Brera Holdings for UCL Championship Weekend #stockmarket #stocks #investing #businessnews #trading #daytrading

The landscape of European football club ownership is undergoing a significant transformation, with institutional investors such as hedge funds and private equity firms increasingly entering the scene. This shift from viewing clubs merely as trophy assets to recognizing them as valuable investment opportunities is highlighted by high-profile transactions like the acquisition of Chelsea Football Club and the ownership transfer of AC Milan. The article examines the trend of institutional investments in European football, focusing on the evolving ownership structures and the strategic approaches employed by investors to maximize returns. It delves into the case study of AC Milan, exploring the distressed debt strategies and the impact of such investments on the club's financial health and competitive performance. This shift in ownership is not only reshaping the financial landscape of football clubs but also the way they are managed and operated, indicating a more strategic and business-oriented approach in the traditionally passion-driven realm of football. For professionals and enthusiasts in the sports and finance sectors, this evolution presents a fascinating intersection of sports, business, and investment, offering new opportunities and challenges in the management and growth of football clubs. #SportsBusiness #FootballInvestment #PrivateEquity #ACMilan #StrategicInvestment https://lnkd.in/dfsDFMVv

📈 M&A Value Creation: What Euro 24 Football Stickers Can Teach Us! 🏆 Ever wondered how collecting Euro 24 football stickers can teach us about M&A Value Creation and Building a Group of Businesses? 📚💡 1️⃣ Buying Individual Stickers: Picture this: you buy packs of Euro 24 stickers from your local shop. Each pack has 6 random stickers for £1, making each sticker cost 16p. 🏷️ 2️⃣ Complete Sticker Books: To complete your sticker book, you need 728 stickers. Only a few complete books are available to buy from specialist locations, and they’re selling for about £200 on eBay. 📈 3️⃣ Enhanced Value of a Complete Book: A complete book at £200 means each sticker is now worth 27p (£200 ➗ 728 stickers). That's an 11p increase per sticker (from the 16p value per sticker), thanks to its new group/complete book status! 🎉 4️⃣ Rarity and Competition: The price is higher because complete sticker books are rarer than individual stickers, and over 50 bidders are driving up the price on eBay for each complete book. 📊 Applying This to M&A and Value Creation 🔹 Paying Fair Value for Small Companies: Just like buying individual stickers, group investors invest or buy smaller businesses at a fair market value. 🔹 Forming a Larger Group: These businesses are combined into a larger entity/group. 🔹 Enhanced Valuation for Groups: Larger groups, like complete sticker books, are rarer and therefore more attractive to other investors. This rarity and the resulting competition among investors, much like the competitive bidding for complete sticker books increases the overall valuation being applied to the group compared to the value of its individual parts. As a result, the combined value of the group is greater than the sum of the separate values of each individual business.   So, just like the completed sticker book is worth more due to its rarity and competition, a larger group of companies is valued higher than the sum of its individual parts. This is multiple arbitrage! ✨ 📅 What year’s football stickers were you collecting, and did you ever complete a book? 🏆 Good luck, England! ⚽🏴 #MergersAndAcquisitions #BusinessGrowth #InvestmentStrategy #MultipleArbitrage #ValueCreation #Euro24Stickers #Football #GoodLuckEngland #BusinessStrategy #Euro24 #Euro2024 #M&A #Lawyer #Legal

The season is finished, the club’s financial years are closed, and last-minute transfers have been done to boost profits. What does this mean for premier league finances? Our estimates for season 23/24 are: Turnover will be flat as there was no increase in broadcasting deals, some increase in matchday and commercial revenue but offset by reduced European distributions (no Champions league winners this year). Staff costs will reduce with the lower cost model of the promoted clubs, and it was a record season for profit on player sales (our estimate is £1B which is £300m higher than the previous season which itself was a record). This we estimate will drive an improvement in overall losses before tax to around £400m from a prior season loss of £713m. Net Player trading (cost of player acquisitions less player sales) to be lower than a crazy 22/23 although at £1.4B still higher than earlier seasons. Debt will remain high, although the source of funds will change as £1B of prior year transfer fees are settled. Operating cash flows will again not cover investments in players and facilities, so we estimate a further £1.3B of new funding required. Find out more at https://lnkd.in/gvqpehTM #MatchdayFinance #PremierLeagueFinance #FootballAnalysis #Football #Soccer #DataAnalytics