The rise of multi-club organizations, such as Red Bull, Eagle Football, City Football Group, Qatar Sports Investments, RedBird Capital, and the Friedkin Group is transforming sports ownership.
Dublin, Ireland and Milan, Italy, Oct. 28, 2024 (GLOBE NEWSWIRE) -- Brera Holdings PLC (Nasdaq: BREA) (“Brera” or the “Company”), the only publicly traded multi-club ownership company focused on football (soccer), highlights the changing landscape of sports ownership that is attracting increased funding and fueling growth in professional sports.
The sports ecosystem has experienced a vast transformation over the last decade. Investors today can not only engage with the sports landscape but also actively shape its evolution, with the emergence of sports-dedicated funds alongside private equity, sovereign wealth funds, and family offices.
Goldman Sachs’ "Changing the Game: Unlocking New Opportunities in Sports” from October 2024 (the “Report”) identifies four investment categories - (i) private equity, (ii) strategic investors, (iii) sovereign wealth funds, and (iv) ultra high-net-worth individuals and family offices. Taking a deeper dive:
- Private Equity: This sector is increasingly targeting leagues, attracted by their steady cash flows and media rights opportunities. Prominent firms like CVC Capital Partners and Silver Lake are capitalizing on prospects within major leagues such as La Liga, Serie A, Ligue 1, and the A-League. Multi-asset investors, such as Ares Management and Oaktree Capital, have also focused on credit investments.
- Strategic Investors: These organizations leverage their commercial brands through sponsorships at the league, team, and stadium levels, often pursuing complementary or sports-adjacent investments to bolster their existing assets.
- Sovereign Wealth Funds: With substantial capital reserves, funds such as the Public Investment Fund (PIF) of Saudi Arabia and Mubadala Investment Company from the UAE are emerging as key players in the sports sector.
- Ultra-High-Net-Worth Individuals and Family Offices: Traditionally dominant in team ownership, these investors are increasingly building multi-sport platforms and exploring international ventures as the U.S. sports market becomes more saturated.
The emergence of multi-club organizations—including Red Bull, Eagle Football, City Football Group, Qatar Sports Investments, and RedBird Capital—is also reshaping sports ownership. These groups aim to create synergies across multiple clubs through commercial initiatives and player trading transactions. In 2023, there were 38 multi-club ownership investments across professional soccer's Big Five Leagues, reflecting a trend toward investing in emerging clubs rather than just established teams.
According to the Report, the sports ecosystem has experienced considerable capital inflow over the past decade, yielding nearly 430% returns across various leagues and attracting a diverse array of investors. Major media companies like Apple TV, Amazon Prime, Netflix, Disney, and ESPN are securing rights and producing exclusive content, appealing to a new era of digitally-native fans who engage with sports across multiple platforms.
“The growth of multi-club ownership and private equity is revolutionizing sports,” said Pierre Galoppi, CEO of Brera Holdings. “We believe that as more companies engage and provide resources, clubs can advance to more competitive leagues, increasing revenues and valuations. Rising valuations and uncorrelated returns are drawing attention from corporate investors, and we expect to see sports holding companies with diversified cash flows emerge as the landscape evolves.”
As sports continue to captivate audiences, investment opportunities are abundant across various sectors. As stated in the Report, European clubs are modernizing their stadiums and enhancing matchday revenues, drawing inspiration from successful models in the United States. Notably, state-of-the-art facilities are being developed for teams like FC Barcelona, Real Madrid CF, and Tottenham Hotspur FC, significantly elevating the fan experience. Beyond stadiums, there are numerous revenue streams and investment opportunities in adjacent categories, including commercial sectors such as apparel, agencies, collectibles, gaming, and data; event day enhancements like stadium infrastructure, live events, and ticketing; as well as media initiatives encompassing streaming, digital content, e-sports, and fantasy sports. This multifaceted approach creates a dynamic landscape for investors seeking to capitalize on the evolving sports ecosystem.
Whether through celebrity involvement, institutional backing, sovereign wealth funds, or pioneering models like Brera Holdings, the Company believes the future of sports ownership is bright and full of potential.
ABOUT BRERA HOLDINGS PLC
Brera Holdings PLC (Nasdaq: BREA) is dedicated to expanding its social impact football business by developing a global portfolio of emerging football and sports clubs. Building on the legacy of Brera FC, which it acquired in 2022, the Company aims to create opportunities for tournament prizes, sponsorships, and professional consulting services. Brera FC, recognized as "The Third Team of Milan," has been crafting an alternative football legacy since its founding in 2000. The club also organizes the FENIX Trophy, a nonprofessional pan-European tournament acknowledged by UEFA. This tournament, which has been referred to as "the Champions League for amateurs" by BBC Sport, has garnered significant media coverage, including from ESPN.
In its efforts to broaden its reach, Brera expanded into Africa in March 2023 by establishing Brera Tchumene FC in Mozambique, which quickly rose to the First Division after winning its post-season tournament. In April 2023, the Company acquired a 90% stake in the North Macedonian first-division team Fudbalski Klub Akademija Pandev, now known as Brera Strumica FC. Additionally, in June 2023, Brera made a strategic investment in Manchester United PLC, realizing a 74% gain. The Company has further diversified its portfolio by acquiring a majority stake in UYBA Volley, an Italian women's professional volleyball team, in July 2023, assuming control of Bayanzurkh Sporting Ilch FC,a Mongolian National Premier League team, which became Brera Ilch FC, in September 2023, and establishing a joint stock company for the North Macedonian women's football club Tiverija Strumica, now known as Brera Tiverija FC, a wholly-owned subsidiary of Brera Strumica FC, in June 2024.
Most recently, Brera announced plans to acquire an Italian Serie B club, having signed an exclusive letter of intent with a prospective club, and is proceeding with due diligence. With a focus on bottom-up value creation, innovation-driven growth, and socially impactful outcomes, Brera Holdings endeavors to position itself as a forward-thinking player in the global sports landscape. For more information, visit www.breraholdings.com.
Forward-Looking Statements
This press release contains information about our views of future expectations, plans, and prospects with respect to Brera's business, financial condition, and results of operations that constitute or may constitute forward-looking statements. Any and all forward-looking statements are based on the management's beliefs, assumptions, and expectations of Brera's future economic performance, taking into account the information currently available to it. These statements are not statements of historical fact. Although Brera believes the expectations reflected in such forward-looking statements are based on reasonable assumptions, it can give no assurance that its expectations will be attained. Brera does not undertake any duty to update any statements contained herein (including any forward-looking statements), except as required by law. Forward-looking statements are subject to a number of factors, risks, and uncertainties, some of which are not currently known to us, that may cause Brera's actual results, performance or financial condition to be materially different from the expectations of future results, performance or financial position. Actual results may differ materially from the expectations discussed in forward-looking statements. Factors that could cause actual results to differ materially from expectations include general industry considerations, regulatory changes, changes in local, national and international economic conditions and other risks set forth in "Risk Factors" included in our filings with the SEC.
Company Contact Information:
Pierre Galoppi, Chief Executive Officer, Brera Holdings PLC
Email: pierre@breraholdings.com
Investor Relations Inquiries:
Skyline Corporate Communications Group, LLC
Scott Powell, President
1177 Avenue of the Americas, 5th Floor
New York, New York 10036
Office: (646) 893-5835
Email: info@skylineccg.com
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