U.S. investors have been eager to invest in European soccer clubs, whether as majority or minority investors. In recent deals for Everton and Liverpool, this trend has been highlighted. However, as competition increases, some middle-market private equity firms are getting creative. Many are now looking into the “multi-club” model, investing in smaller teams or lower leagues throughout Europe. This shift is happening as deep-pocketed investors, such as the Saudis, intensify competition. U.S. investors are now focusing on clubs with lower valuations that are not typically in the top tier of the sport. This is seen as an opportunity to enter the international sports market at smaller deal valuations. The global nature of soccer fans and its growing popularity in the U.S. present higher revenue opportunities from broadcast media rights deals to merchandising. As a result, more than one-third of the clubs in the top five European soccer leagues are backed by U.S. investors. Deal valuations for European soccer clubs have skyrocketed, going from over $70 million in 2018 to around $5.2 billion in 2022. This increase is partly driven by recent high-profile acquisitions, such as Chelsea and AC Milan. Some U.S. investors have found alternative ways to enter the European sports market, including investing in lower-tier leagues and teams. The Championship League and League One in England, for example, offer attractive opportunities at smaller valuations. U.S. investors are also showing interest in multiple teams across Europe, allowing for a “multi-club” model. This model offers synergies between comparable clubs, potential player transfers, and data sharing. While larger private equity firms focus on top teams, middle-market firms are raising funds to pursue the multi-club strategy. One U.S. firm, 777 Partners, has successfully implemented this strategy by acquiring stakes in Everton, Sevilla FC, and clubs in various countries.
