Club Member Newsletter: October 4th
Ares invests in Inter Miami FC, 777 Partners purchases Genoa C.F.C., are the Tampa Rays headed to Montreal? and a flurry of other deal activity
Owners Box is FanClub Sports’ newsletter and investment community giving participants exclusive first access to high-end sports team and league-focused opportunities
Sign-Up & Share Owners Box with your friends and colleagues
Join our live chat on Telegram
Learn more about how FanClub can work with your team
Every other week we provide sign-up links for our upcoming investor webinars, give direct access to the live deals on our platform, and breakdown the recent news in sports investment, M&A, and technology
Highlights:
Football Is the Next Big Thing for Hedge Funds and Private Equity
Yo Gotti Officially Becomes a Part of D.C. United’s Ownership
Rays to advertise Montreal plan with sign at the Trop during postseason
777 Partners Acquires Serie A’s Genoa C.F.C. for $175 Million
Denver Broncos likely for sale in ’22, but high price will test strict NFL owner rules
Ares Management Corporation Closes $150 Million Preferred Equity Investment in Inter Miami CF
CVC Investment in LaLiga Aims to Bring Smaller Clubs Up to Speed
FanClub Sports Voted Top 100 Early-Stage Company in NYC
New York VC Network has selected FanClub as one of the Top 100 early-stage companies to follow in 2022. The selection committee consists of current and former VCs, prominent angel investors, exited entrepreneurs, and our Fortune 500 stakeholderds in M&A roles.
Companies were rated primarily based on the team, traction, and scalability.
Our First Investment Webinar Has Been Rescheduled
FanClub’s scheduled first sports investment webinar on September 21st has been rescheduled due to an unfortunate illness with the moderator at Family Office Networks. We will let everyone know the make-up date as soon as possible!
Live FanClub Opportunities
Top eSports Organization
Top Major League Soccer Opportunity (Closing soon)
Top Italian Football Club in Serie B
Top Spanish Football Club in La Liga (Early Interest)
NBA G League Team (Early Interest)
Top French Football Club in Ligue 1 (Early Interest)
Champions League Level Football Club (Early Interest)
Top ATP Tennis Tournament (Early Interest)
Recent Sports M&A News and Developments
Football Is the Next Big Thing for Hedge Funds and Private Equity - Bloomberg - September 28th, 2021
When AC Milan host Atletico de Madrid in the Champions League on Tuesday evening, it will be a clash between Italy’s most successful team in Europe’s elite soccer competition and last year’s Spanish title winner.
For the financial world, it’s also a matchup between a hedge fund based in New York and a credit fund headquartered in Los Angeles. Elliott Management Corp. took control of AC Milan in 2018 after Chinese owner Li Yonghong defaulted on debt obligations. Funds managed by Ares Management Corporation acquired a 34% stake in LaLiga champion Atletico in June.
They are two of the alternative investment firms awash with cash that have been gradually gaining a foothold in the world’s most popular sport. After billionaire soccer fans, petrodollars from the Middle East and a spate of Chinese purchases over the past two decades, private equity, credit vehicles and hedge funds now represent the latest wave of investors. The most recent example is Miami-based 777 Partners, which announced on Sept. 23 it would purchase Italian club Genoa
Yo Gotti Officially Becomes a Part of D.C. United’s Ownership - VERSUS - September 28th, 2021
Yo Gotti has gone from taking over the rap game to taking over the football game by becoming a new major shareholder at MLS side D.C. United.
Gotti just announced his new business venture on Monday, saying he and three other investors have bought ownership of the franchise. Gotti will now own 2-3% of the team – with D.C. United currently worth a total of $750 million.
Gotti’s investment comes shortly after Houston Texans RB Mark Ingram II invested in June to push the team’s value to $710 million.
Rays to advertise Montreal plan with sign at the Trop during postseason - the Score - September 25th, 2021
The Tampa Bay Rays are adding a sign to the back wall of Tropicana Field for the postseason to advertise their plan to split home games in future seasons between Florida and Montreal.
Team president Matt Silverman announced the plan on Saturday's "This Week in Rays Baseball" radio show, according to Marc Topkin of the Tampa Bay Times.
"We’re going to add a sign in the right field foul territory with a very simple Tampa Bay Montreal graphic," Silverman said. "Especially with the eyes of baseball on us this October, we want that visible symbol of our plan and our excitement for it. It will mark the effort subtly and keep the focus on winning."
While the plan hasn't officially been put in place, Silverman said it's the best path forward to keep baseball in the area.
"We believe in our sister-city plan; Major League Baseball believes in it fully," Silverman said. "It’s the best and possibly only chance for baseball to be here for generations. That’s been our sole focus. It’s never been about other markets and relocation overtures. It’s always been about how we can make it work here."
777 Partners Acquires Serie A’s Genoa C.F.C. for $175 Million - Yahoo! Sports - September 23rd, 2021
777 Partners, a Miami-based alternative investment firm, has acquired full ownership of Italy’s oldest professional soccer team, Genoa Cricket and Football Club. The private equity firm is said to have bought the club for $175 million at its enterprise value, according to sources close to the deal.
Established in 1893, Genoa C.F.C. plays in Italy’s top league, Serie A, and has won the Italian championship nine times. The 128-year-old club finished in 11th place in the 2020-21 season.
The investment was led by Josh Wander and Steve Pasko, the founders of 777 Partners, as well as Juan Arciniegas, the managing director who oversees the firm’s sports, media and entertainment investments, and Andres Blazquez, the operating partner who helps manage the firm’s soccer investments.
Denver Broncos likely for sale in ’22, but high price will test strict NFL owner rules - The Athletic - September 21st, 2021
There is a general consensus in NFL and sports-banking circles that the Denver Broncos will be for sale once the season concludes. One investment banker, who is advising a prospective buyer, assured he has been informed that an auction will commence early next year.
The more interesting question is not so much whether the Broncos are destined for a sale, but would it become the first test of whether the NFL’s conservative ownership rules finally butt heads with skyrocketing valuations. Reports peg a Broncos sale at $4 billion, nearly double the last time an NFL team was sold — the Carolina Panthers in 2018. Even assuming the NFL bends its debt cap and allows, say, $1 billion of leverage, there aren’t many able and willing to come up with $3 billion in cash.
“You tell me who can write that kind of check,” asked one banker, who laid out the hypothetical $3 billion equity/$1 billion debt split. “That’s why it’s a fundamental issue.”
Ares Management Corporation Closes $150 Million Preferred Equity Investment in Inter Miami CF - Yahoo! Sports - September 17th, 2021
LOS ANGELES--(BUSINESS WIRE)--Ares Management Corporation (“Ares”) (NYSE: ARES) announced today that funds managed by its Credit Group have closed on a $150 million preferred equity investment in Inter Miami CF. The transaction is in connection with Inter Miami’s announcement that Jorge and Jose Mas and David Beckham have finalized the buyout of Marcelo Claure and Masayoshi Son.
Founded in 2018 and based in South Florida, Inter Miami launched its inaugural season in March 2020, becoming Major League Soccer’s (“MLS”) 25th professional sports club during the 25-year-anniversary of the North American League. Inter Miami became only the seventh club in league history to reach the MLS playoffs during its expansion season, accomplishing this during a challenging time given the pandemic. It has since continued growing and attracting top talent on and off the field.
CVC Investment in LaLiga Aims to Bring Smaller Clubs Up to Speed - Business Wire - September 17th, 2021
Although he lives in Madrid, CVC Capital Partners’ managing director Juan Arbide did not follow soccer before his company made a $3.2 billion investment in Spain’s LaLiga. “I wasn’t that keen on [football]. But more and more, I’m becoming a fan,” he said in a video call.
“Outside Barcelona and Real Madrid, there’s a lot of work to be done, and that’s why we are here,” he said, pointing to areas where he sees LaLiga teams lag, like commercialization, technology, social media and fan engagement. “When you look at the [English] Premier League clubs, beyond Manchester United and Liverpool, they’re doing much better commercially than LaLiga clubs.”
A month ago, 38 out of the 42 teams in LaLiga’s first and second divisions voted in favor of CVC’s $3.2 billion investment. The deal’s details drew immense media attention, especially given the announcement coincided with Lionel Messi’s surprising exit from Barcelona, which club president Joan Laporta characterized as a financial decision. LaLiga is not a legal entity with shares investors can buy. So rather than acquiring a stake in the league itself, CVC will share in the results of the business through a joint venture that is to last 50 years.
DISCLAIMER
This newsletter is confidential and may not be distributed, transmitted or otherwise communicated to others, in whole or in part, without the express consent of FanClub Sports Capital Inc.
This newsletter does not constitute an offer to sell, or the solicitation of an offer to buy, any security, product or service, including interests in the fund.
Stay tuned for the latest FanClub deals and sports updates!