Multi-club ownership groups take centre field across global football

• Multi-club ownership is a recent phenomenon in football, with the vast majority of multi-club ownership groups emerging within the last 8 years[1]
• As of March 2022, 181 football clubs across the globe are part of multi-club group ownership models[2]
• The multi-club network model is seen as “the future of sports investment”, according to Juan Arciniegas, managing director and co-head of sports, media and entertainment at 777

Multi-club ownership groups are growing in prevalence across world football, according to a new report by global law firm Norton Rose Fulbright, ‘Keeping possession: Ownership trends in English Premier League football’.

The report identifies a particular rise of an ownership model whereby a corporate entity manages ownership interests in a number of different clubs that fall under the same ‘group’ umbrella. Under this ownership model, corporate entities can benefit from multiple economies of scale, ranging from the cost of data analytics through to commercial opportunities with fans.

With the financial impact of COVID-19, the multi-ownership model also enables investors to diversify risk and benefit from the advantages presented by organising a group of teams. In comparison to other forms of ownership, it allows for increased financial resilience and opportunities for growth in both sporting and commercial avenues.

As the valuation of clubs continues to rise – in May 2022, Chelsea FC was acquired for a reported £2.5billion[3] – there are far fewer individuals who are likely to have the necessary funds to acquire the entire issued share capital of many of the larger clubs.

English football has seen the likes of City Football Group, a jointly-owned holding company administering a roster of clubs globally, establish its presence in the UK with its ownership of Premier League club Manchester City. This is in addition to its group of branded clubs across Europe and the rest of the world with teams in cities including Girona, Lommel, New York, Melbourne, and Mumbai.[4]

Stephen Rigby, who leads Norton Rose Fulbright’s sports law practice, commented:

"The model of sports team ownership is changing. Developing a strong, multi-club network allows each of the separate brands to benefit from the natural synergies and collaboration of the multi-ownership model, including in the fields of data sharing, scouting and sophisticated finance functions. The model also helps to maximise the commercial opportunities available to each club."

"In light of the difficult economic challenges many clubs are facing following the effects of the COVID-19 pandemic, this ownership model is proving to be beneficial in ensuring football clubs can be effectively managed and financially protected."

Norton Rose Fulbright has been producing ‘Keeping possession’ since May 2020. This year’s report features exclusive insights from Juan Arciniegas, managing director and co-head of sports, media and entertainment at 777 Partners LLC (777). 777 is a Miami-based alternative investment firm that has, in a short period of time, acquired ownership interests in a number of football clubs across the world, including Sevilla, Genoa and Vasco da Gama.

Norton Rose Fulbright’s lawyers have long-standing experience in the global sports sector, advising clients on sports-related transactions throughout North America, Europe, Asia, Australia and South Africa, covering soccer, rugby, Formula 1, basketball, NFL, cricket, ice hockey, tennis and horse racing. The firm advises on all aspects of sports law, and is particularly strong in the areas of acquisition and disposal of sports franchises, negotiation of sponsorship deals, stadium financings and investigations.

Read Norton Rose Fulbright’s insights on business of sport: https://insidesportslaw.com/

Sources:

[1] https://www.uefa.com/MultimediaFiles/Download/OfficialDocument/uefaorg/Clublicensing/02/53/00/22/2530022_DOWNLOAD.pdf

[2] https://offthepitch.com/a/growth-almost-700-cent-number-clubs-being-part-multi-club-ownership-2017

[3] https://www.chelseafc.com/en/news/2022/05/06/club-statement

[4] https://www.cityfootballgroup.com/our-clubs