The Euro 2024 kicks off today, June 14, with the opening ceremony and the inaugural match between Germany and Scotland. But the beautiful game will be in the spotlight not only for the goals but also for the significant investments it attracts. In short, many things are happening in football both on and off the field, according to an analysis by Preqin.
While the ball rolls in Germany, Manchester City, the champion of England, has taken legal action against the English Premier League (EPL) over rules concerning clubs’ commercial deals with companies linked to their owners. This move could “drastically alter the landscape of professional football,” according to a recent publication by the London Times. Manchester City is owned by Sheikh Mansour of Abu Dhabi through his City Football Group, in which the international private equity firm Silver Lake also has a significant stake.
In an era where fund managers have become key players in sports, complex financial ties are increasingly common. However, external ownership is not welcome everywhere.
Last year, Advent International, Blackstone, CVC, and EQT were interested in buying a €1 billion stake in the broadcasting rights of the German Bundesliga. But the DFL Deutsche Fußball-Liga abandoned the deal in February amid widespread fan protests that included chocolate coins and fireworks tied to remote-controlled cars. CVC already owns a stake in the broadcasting rights of France’s Ligue de Football Professionnel.
Germany remains an outlier, partly because its clubs are protected from full shareholder takeovers. In England, Clearlake Capital holds a stake in Chelsea. Newly promoted to the EPL, Ipswich Town received £105 million for 40% of its capital from Ohio-based Bright Path Sports Partners in March.
Everton, a Premier League club, recently saw a potential deal with 777 Partners fall through. This Miami-based company’s investments in European football include Genoa, Sevilla, and Standard Liège.
RedBird Capital Partners (AC Milan, Toulouse, and Liverpool), based in New York, recently raised $4.7 billion to invest in sports, media, and financial services. Like the 24 national teams competing in the Euro 2024, their goal is to succeed in the world’s greatest sport.
