Mark tells us about a potential sale of the club. There is a time and a place for it.
There is an appeal to owning a football club in the premier league. To those with the funds and ambition, the answer is very simple.
Who wouldn't want to invest in a global sporting brand that is considered to be recession-proof and with the potential to offer low risk, high reward, and an unchanging loyal customer base? There is a chance of some fun along the way while trying to win the premier league
The Boston-based sports investment company that also owns the Boston Red Sox baseball team and the Pittsburgh Penguins NHL franchise has done all of the above since buying the English soccer team from American businessmen George Gillett and Tom Hicks. In five years, they transformed the team from a sleeping giant into a team that has reached three European finals and won the first English title in 30 years. There are "For Sale" signs above the club now that it is being valued more than 12 years ago. There is a lot of potential new owners.
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Chris Mann, head of mergers and acquisitions for New York and London, said that there are another 10 American owners who want to leave football club ownership.
There has been a significant increase in U.S. investment in European football. Two-thirds of the investments in clubs in the big five leagues were made by U.S. investors.
"American interest in European football is part of a generational shift in that we've moved away from the previous type of investments by high net worth individuals towards more hard-headed purchases by people and organizations that are looking for clubs that are going to give them big returns."
After reaching the European Championship final against Real Madrid in Paris, the Reds earned over a hundred million dollars in prize money. In its Financial Forecast 2022 report published in September, the football finance website Off The Pitch predicted that in three years' time,Liverpool will overtake Manchester United for the first time in revenue, with a pre-tax profit of £76 million.
The majority of the club's commercial revenue is generated by partnerships with Abu Dhabi-based companies, but that figure would fall short of Manchester City's turnover. The ability of Man United to attract sponsors from all corners of the globe is what makes them the benchmark in English football.
It is a compelling acquisition for potential new owners, particularly for American private equity funds who want success and financial growth, because of the commercial power of the club.
Mann said that investors are looking for clubs that are similar to teams in the U.S. sports league. "They're looking for big global brands with very low risk on performance -- teams with almost zero chance of being demoted and a very high chance of winning the league or making the playoffs, and getting on that kind of recurring broadcast revenue train"
20 years of interrupted year-on-year growth in sports media rights values has made it difficult to find clubs in Europe that meet those criteria.
Valuations are going up very quickly because of scarcity value. According to the criteria laid out,Liverpool are close to the top. With the dollar being stronger than the pound and Euro, there's a chance to buy these big teams at a much more reasonable price than the majority of U.S. sports teams.
The sale of the Denver Broncos to a group led by Todd Boehly was more expensive than the sale of Chelsea. The reality of the football market is very small if you want to invest in a team of the caliber ofLiverpool. You can get at least ten of those. How many of them are currently on the market? Maybe, one or two.
The sale of the club earlier this year was prompted by the UK government's sanctions against the previous owner of the club. According to sources, groups or individuals were interested in taking over the bridge.
Due to the club's global fan base and status as one of football's most historic, Goldman and Morgan Stanley have been enlisted to find a buyer for the club, which is currently up for sale. According to Mann, there is more to the attraction than the Reds' reputation on the pitch. If you compare the revenues of big clubs to other assets and industries, they have proven to be recession-proof in the past.
The 2008 global financial crash and the revenue of the teams in the big five leagues increased over the course of a year. The S&P 500 lost 42% of its value over the same period. Similar numbers can be seen in the dotcom recession.
If we are heading into a third major recession of the century, football teams with low downside risk on the performance side are a good bet.
The appeal of fan loyalty is a big one and it is only surpassed by Real Madrid and Barcelona. In the past, that support has protested against owners and helped to force out the owners of the club. A negative image of a club is not likely to deter potential owners from buying one.
Football is not a consumer business, even if a team has a year or two years where it's not quite at the level that it should be or would be expected to be. If Apple's products didn't work out for two years, everyone would buy a new device from a different company. In football, it's not the same.
It's the only form of entertainment that appeals to everyone, so it's delivering a wide support base, but also an incredibly loyal one.
People support a team from the beginning to the end. Even if the performance of the team isn't at the level that it's expected to be, clubs can still guarantee a level of commercial revenue because we do it almost regardless of the quality of the on-field product.
That is a very good position for industry to be in. Religion and healthcare share the same dynamics in wider society.
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