The last 18 months have also seen US acquisitions of ACF Fiorentina of Italy and Toulouse FC of France. The driving force behind these series of deals is the belief that European soccer offers more value than American sports, according to Pacific Media Group co-founder Paul Conway, whose firm owns teams on the continent.
“Investing in American sports is very expensive and highly valued,” Conway said, noting that professional baseball and basketball teams in the United States total at least $ 1 billion.
Another American investor attracted to European football is Joseph DaGrosa, who is in talks to buy Southampton from the English Premier League, according to a person with knowledge of the matter. The team’s owner, Chinese businessman Gao Jisheng, is looking for around 200 million pounds ($ 256 million), said this person, who asked not to be identified when discussing confidential information.
Gao’s investment vehicle, Lander Holdings Ltd., did not respond to emails or phone calls seeking comment. A representative for DaGrosa said he is looking at various teams from different leagues, declining to comment on specific goals.
Americans now have sizable stakes in about a fifth of the 60 teams that play in major soccer leagues in the UK, Italy and France, according to consultancy KPMG. Their presence is highlighted by the withdrawal of Chinese investors, who in recent years have bought teams such as Aston Villa, Wolverhampton Wanderers and West Bromwich Albion.
DaGrosa wants to emulate the model of City Football Group Ltd. of Abu Dhabi, which owns stakes in 10 teams, including Manchester City, and achieved a valuation of almost $ 5 billion following an investment by US private equity firm Silver Lake Partners. . . . last year.
“There is nothing better” than the English Premier League, DaGrosa said in a telephone interview earlier this year.
There could be more offers on the way. American media entrepreneur Henry Mauriss was weighing an offer for Newcastle United F.C. at the beginning of this year. England, which is back in play after the collapse of its planned takeover by a Saudi-led consortium.
Meanwhile, US acquisition firms, including Advent International and Bain Capital, are competing to invest in Italy’s biggest league.
The coronavirus pandemic has hit sports teams, which are losing revenue from empty stadiums and reduced streaming payments.
partner Gerry Cardinale, bought a majority stake in second-tier French team Toulouse in July. That’s after the games were suspended in March due to Covid-19.
