Feverway Sports Group, owner of Liverpool Football Club and baseball’s Boston Red Sox, would like to acquire more professional sports teams and potential future stock market listings after the new investment protections. The US group is valued at $ 7.35bn
Earlier this week, private investment team Redbird Capital and basketball star LeBron James acquired minority claims at the FSG, confirming its position as the most valuable proprietary group in this global game.
Speaking to the Financial Times, FSG chairman Tom Warner and Redbird founder Gary Cardinal pledged to use the new capital to buy teams in the North American National Basketball Association and the National Hockey League, as well as elsewhere in European football.
“The Fenway Sports Group started two decades ago and I think we have a lot of knowledge and experience in creating and launching new businesses and in sports, entertainment and media,” Warner said. “We see Gerry as an important partner in our interest in identifying and acquiring more assets.”
The push for growth comes, but after earlier discussions with Redbird and its special acquisition acquisition firm Redball Reverse additions fall apart.
It publicly lists the FSG and the owners of this group are billionaire John W.D. Led by Henry, the Red Sox and Liverpool’s carefully managed financial rewards over the years have become faster and closer to potentially larger financial rewards, both of which have been great – field success in recent years.
Asked if the FSG could still sell a club and get paid the fastest, Warner said: “If someone comes to your house and gives you a crazy price, you check it out. But our interest must be to retain and increase the property that we have. I think we see the opposite, not just financially. We have a commitment to our supporters. ”
Werner’s answer refers to the broader problem for the FSG and the actual majority owners of other blue-chip sports franchises: Buyers have enough flush to write multi-million-dollar checks.
Top sports franchises in the United States regularly make millions of dollars, such as the New York Mets in baseball The hedge fund’s Titan was bought by Steve Cohen in October 4 for 2.4bn.
However, such a purchase price has not yet been achieved in European football. Chelsea-owned Russian-Israeli billionaire Roman Abramovich demanded more than ২ 2 billion from those who wanted to acquire his Premier League club last year.
“How do you get a মূল্য 2bn plus assessment [a club in] A league with a total operating income of bn 5bn before the 500m tax and a total net operating profit, “said Bob Ratcliffe, executive of UK chemical ingredients group Iniesta, which has tested buying Chelsea as part of a broader sports portfolio.”
The FSG’s confrontation with Liverpool, one of the most successful clubs in the English language, has achieved this M 300m in 2010. Since then, the team has won the Champions League, competed with the top clubs in Europe, and won the Premier League last season, securing it. The first English league title in 30 years. The FSG’s assessment shows that the football club alone has billions of dollars.
“The sports business is something I don’t think has kept pace with team evaluations,” said the former Goldman Sachs cardinal, who helped launch the regional sports network for the New York Yankees in baseball before founding a sport called Redbird. Focus Private Investment Group.
“These sports resources and leagues, it’s the small business in today’s world, the way technology wants people to get and receive content and the way in which live programming in particular has changed,” he added.
Advising Buyers of Sports Assets One banker says there are a number of reasons why investors should take the lead in creating multiple team ownership in different sports, including diversity and scale.
“The owners of the team gain more on media partners when negotiating new media rights agreements through multiple sports franchise ownerships in the same market,” said the banker, who declined to be named without being allowed to speak to the press. “If it’s a team that plays in the summer and a team that plays in the winter, you have year-round content that is valuable if you have your own network.”
“If the two teams share in the same arena, there will certainly be benefits from a managed approach to ticket and suit sales across both teams. Ultimately, multiple franchise-owned companies will scale even larger and reduce swing from season to season, which could be even more important for small market teams on a low-income basis, ”they added.
Meanwhile, major leagues and teams, including private capital, are following minority positions At the Serie A in Italy And NBA San Antonio Spurs. Both Major League Baseball and the NBA have increased by-laws to allow such institutional investments.
As a result, and as the epidemic continues, Cardinal said the private investment in the FSG has paid off the most until the market is “normalized” sense. “On the road we can think right now that we can be at the forefront of sports and public construction and I can introduce the kind of capital that comes. ”
Warner said that in the end the FSG will adhere to the same principles that have led the Red Sox and Liverpool so far.
“The reason we grew up was that whether we called it a‘ diamond ’or a‘ pitch ’, we focused on building the winning team on or off,” he said. “The most important thing for us is to try to be the best in the class.”