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Title: U.S. Investors Scoring Big in European Soccer: A Playbook for the Multi-Club Model

  In the dynamic world of European soccer, U.S. investors are making strategic moves, shifting their focus towards clubs with lower valuations and often outside the marquee tier of the sport. This trend is accompanied by a growing interest in a so-called multi-club model, where investors target smaller clubs with lower valuations, aiming to tap into the international sports market at more accessible deal valuations. Shifting Landscapes and Global Opportunities As deep-pocketed investors, ranging from top U.S. private equity and venture capital firms to global rivals like sovereign wealth funds, intensify competition, the focus is expanding beyond the traditional heavyweights. Charles Baker, co-chair of law firm Sidley’s entertainment, sports, and media group, notes, "In terms of private equity and high net worth individuals, soccer is more of a global sport than almost any U.S. sport." The vast global fanbase, coupled with soccer's growing popularity in the U.S., translat...

Foreign Ownership in the Premier League

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The article from Brand Finance discusses the trend of foreign ownership in the Premier League, mainly focusing on its financial implications and the stakeholders' perspectives. It begins by mentioning a significant transaction where the Abu Dhabi United Group sold a 10% stake in City Football Group to US private equity firm Silver Lake Partners, valuing the group at $4.8 billion, to illustrate the growing interest of foreign investors in European football. It also pointed out that 40% of Premier League clubs are majority-owned by foreign investors, and an additional 35% have foreign minority stakeholders. The study examines the financial performance and ownership impacts on three Premier League clubs: Manchester City, Newcastle United, and Manchester United. Manchester City Manchester City has shown significant financial growth, with revenues growing at a compound annual rate of 27% since 2015, reaching a peak in 2019 before experiencing a decline due to the COVID-19 pandemic. The ...

Multi-Club Ownership

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The article delves into the complexities of multi-club ownership within the football industry, highlighting how entities such as the City Football Group and the Red Bull Empire have created interconnected networks of clubs around the world. It examines the motivations behind this trend, pointing out how such ownership structures can provide synergies, economies of scale, and opportunities for talent development and scouting across different regions.  Moreover, the piece discusses the potential benefits and challenges associated with multi-club ownership. While it can lead to increased commercial opportunities, resource-sharing, and enhanced global branding, there are concerns about conflicts of interest, competitive fairness, and the impact on traditional footballing cultures. Additionally, regulatory bodies like UEFA have monitored these ownership arrangements to ensure compliance with fair play regulations and prevent anti-competitive behaviors overall; the article suggests that...

Balancing Act: How UEFA's Common Ownership Rule Shapes the Integrity of European Football Competitions

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The article from The National Law Review discusses the regulation of common ownership of sports teams, focusing on European football and its implications for the integrity of competitions. It highlights the UEFA Common Ownership Rule, which aims to prevent conflicts of interest that might arise when an entity owns multiple clubs participating in the same competition. This rule was upheld by the Court of Arbitration for Sport (CAS) in a case involving AEK Athens and SK Slavia Prague, emphasizing the need to maintain competition integrity and prevent any manipulation of match results. The article also touches on how common ownership is managed in England and Wales, particularly through the Owners' and Directors' Test, which aims to protect the reputation and integrity of football leagues by ensuring club owners and directors meet higher standards than required by law. This regulatory framework seeks to prevent any individual from holding significant interests in multiple clubs th...

Navigating the Complex Landscape of Properties and Ownership in European Sports

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  Introduction: European sports, with its rich history and passionate fan base, is not only a source of entertainment but also a significant economic powerhouse. The landscape of properties and ownership in European sports is a complex web of clubs, leagues, and governing bodies. In this blog, we'll delve into the key aspects that define the ownership structures and property dynamics within the realm of European sports. Club Ownership Models: European football clubs often have diverse ownership structures, ranging from fan-owned models to billionaire investors. In countries like Germany, fan ownership is not uncommon, with supporters having a direct say in the club's decision-making processes. In contrast, some clubs are privately owned, often by wealthy individuals or corporations. This diversity in ownership models adds to the uniqueness of European sports. Financial Fair Play (FFP): The concept of Financial Fair Play, introduced by UEFA, aims to ensure that clubs operate w...

Can European Sports Franchises Capitalize on their Venues like the U.S.?

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In comparing European and American sports venues, the contrast is stark in terms of design, utilization, and revenue generation strategies. American stadiums like AT&T Stadium in Arlington, Texas, home to the NFL's Dallas Cowboys, are exemplars of modern sports architecture with vast capacities, luxurious amenities, and multifunctional facilities capable of hosting a wide range of events beyond sports, such as concerts and conventions. These venues often incorporate state-of-the-art technology for fan engagement and monetization, including large-scale digital displays and mobile app integrations for in-seat ordering and interactive experiences. On the other hand, European stadiums like FC Barcelona's Camp Nou in Spain, while iconic and steeped in history, face constraints due to their urban locations and historical significance. These stadiums are primarily designed and used for soccer matches, limiting their flexibility for hosting non-sporting events. However, some Europe...