Proactive Investors - Manchester United, Arsenal, Chelsea, Liverpool, Burnley and now Everton have found themselves with, at least, partial ownership by American investors – but if Goldman Sachs (NYSE:GS) get’s its way this could still be only the beginning of America’s European soccer invasion.
Goldman Sachs (NYSE:GS) is now putting together a team of bankers to specializing in the buying, selling and financing of ‘sports franchises’, that’s according to a report by Wall Street Journal.
Running within the American bank’s investment banking division the sports franchise team will ‘combine sports M&A with sports financing’, the WSJ report said, adding that the ‘top goal’ is to pitch Goldman’s high net worth clients into deals for teams, stadium financing and other “flashy” deals.
Goldman notably played a role in the deal that brought Todd Boehly and his consortium of investors into Chelsea – before they sacked two consecutive head coaches and went on £1 billion player spending spree.
The bankers also have form with deals in Formula One and the NFL.
It comes as The Raine Group, another Wall Street firm involved in Boehly’s Chelsea acquisition are evidently struggling to close over at Manchester United.
Whilst no official comment has come from the Manchester club, reports earlier this month that the Glazer family were considering pulling the plug on a protracted process to sell, resulting in a sharp stock sell off which saw United Nasdaq-listed shares fall 20%.
It comes after separate bids from a Qatar-based consortium and Ineos owner Sir Jim Ratcliffe reportedly failed to meet the American family’s lofty expectations, which according to British tabloids were set between $8 billion and $10 billion.
Anticipating growing interest in sports assets generally, and soccer assets in particular, it was suggested in a Daily Mail article that the Glazer family may opt to retest the market in 2025, when alongside a US hosted World Cup, they believe they can achieve a better price.
Much more recently, meanwhile, Everton Football Club was today bought by Miami-based private equity firm 777 Partners.
The US group is buying Farhad Moshiri’s 94% stake in Everton, adding the stake to existing interests in stakes in other clubs in Italy, Spain, Germany and France, along with commercial rights for the Argentinian and Brazilian football leagues.