Get 40% Off
🚀 AI-picked stocks soar in May. PRFT is +55%—in just 16 days! Don’t miss June’s top picks.Unlock full list

PSG valued at €4.25b as hedge funds scramble for football clubs

Published 08/12/2023, 10:02
Updated 08/12/2023, 10:40
© Reuters.  PSG valued at €4.25b as hedge funds scramble for football clubs
MANU
-

Proactive Investors - French football club Paris Saint Germain (PSG) has been valued at around €4.25bn following the disposal of a minority stake by Qatari owner QSI.

In another deal highlighting the scramble for top sports franchises, US hedge fund Arctos is buying 12.5% of PSG and though the financial details were not released numerous sources said the deal values the club at €4.25bn (£3.45bn) implying a cost of around €530m.

That compares to a price of around US$5bn excluding debt for Manchester United (NYSE:MANU) based on reports of the amount UK billionaire Jim Ratcliffe is said to be paying for a 25% stake.

Including debt, the deal values Manchester United at between $6 billion and $6.5 billion, according to Reuters.

Chelsea was sold by Roman Abramovich last May for $5.2 billion to US billionaire Todd Boehly and private equity firm Clearlake Capital.

Ratcliffe's investment is expected to be confirmed next week having taken more than a year to come to fruition.

Unlikely Ratcliffe however, who has promised sweeping changes to the football activities of the Manchester club, Arctos said it will not influence on-field matters.

Instead, the hedge fund will focus on “operations and real estate initiatives”, such as the stadium, and new training ground.

Developing PSG’s women’s side will also fall to Arctos, which has a current portfolio of minority stakes in more than thirty sports franchises including Fenway Sports, the owner of ManU’s bitter rival Liverpool FC.

Doc O’Connor, Arctos’ managing partner, said: “Our investment in the club fully aligns with our strategy of partnering with best-in-class teams across North America and Europe.

"We are excited to be joining the PSG family and look forward to working together with president Nasser Al-Khelaifi to maximise the club’s potential providing strategic expertise and investment to drive the next phase of development, growth and success of this great institution.”

QSI bought PSG for €70m in 2011.

Read more on Proactive Investors UK

Disclaimer

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.