SportsInvest Newsflash (by Oakwell Sports Advisory)
Stay up-to-date with sports investment trends & events worldwide
Top Stories of the Week
EA in talks with Comcast, Apple, Amazon, and Disney over buyout or merger
Video game giant Electronic Arts (EA) is reportedly seeking a potential buyer or merger opportunity, with potential suitors including some of the biggest names in media and technology.
The company is responsible for some of the most high-profile successful sports games franchises in the industry, including FIFA, Madden NFL and NHL, posting revenues of $5.6bn in 2021.
EA is eager to capitalise on the recent wave of multi-billion-dollar acquisitions of video game publishers, the most notable of which was Microsoft’s $69bn takeover of Activision last year.
FC Barcelona is reportedly nearing a $960 million deal with Goldman Sachs and All Sport Finance
FC Barcelona are currently in talks with Goldman Sachs and All Sport Finance to sell several rights that would bring in funds to help lower the club's debt.
The $960m deal would be in exchange for 30% of the club's broadcast revenues and a portion of future revenues from the new stadium complex, Espai Barça. The $1.6bn expansion project will add multiple training facilities, entertainment options and over 5,500 seats.
If financing is secured the project can start this summer, having already received support from members. If the new deal goes through, it would mark the largest investment in the history of the club. Barcelona will reportedly repay a total of $1.5bn in 35 years.
Barça sees this agreement as an alternative to CVC's Project Boost deal that La Liga wanted the club to accept last summer.
Gametime secures $30m investment from series of pro sport owners
Gametime, the last-minute sports and entertainment mobile ticket marketplace app, has secured $30m in new funding from a series of prominent owners of professional sports teams in North America.
The investment will accelerate product development and expand Gametime efforts to reach a younger audience.
The investment round is led by Nimble Partners including John Burbank (investor in Golden State Warriors) Maven Ventures, Accel, GV, Jeff Mallett (principal partner of San Francisco Giants and co-owner of the Vancouver Whitecaps), Bolt Ventures, Tenere Capital, Blitzscaling Ventures, Next Play Capital, Alumni Ventures, University Growth Fund, Palapa Ventures and other individual investors.
Football
Chelsea sale completed after Roman Abramovich agrees to government terms
The £4.25bn takeover of Chelsea football club has been completed after Roman Abramovich agreed to the UK government’s terms for the sale, ending a tumultuous period that raised fears over the club’s existence.
Nadine Dorries, the culture secretary, said the UK government issued a licence on Tuesday night that permits the sale of Chelsea.
A new era at Stamford Bridge can officially begin after a bid led by Todd Boehly, a part-owner of baseball’s LA Dodgers, was given permission to go through. The government issued the licence after it said it was “now satisfied that the full proceeds of the sale will not benefit Roman Abramovich or any other sanctioned individual”.
Tottenham owner injects £150m into club for Conte’s transfer chest
Tottenham’s owners have invested £150m into the club to back Antonio Conte in the summer transfer market. The majority shareholder, Enic, has pledged the cash – via the issue of convertible A Shares and accompanying warrants – to provide “greater financial flexibility and the ability to further invest on and off the pitch”.
The additional funds, in combination with revenue from a first full season at their new stadium at full capacity, comes on the back of Spurs returning to the Champions League .
Enic, based in the Bahamas, is 70%-owned by the British businessman Joe Lewis, with Levy and his family owning the rest.
AC Milan nearing €1.3bn RedBird takeover
US private equity firm RedBird Capital Partners is closing in on a €1.3bn takeover of Italian soccer champions AC Milan.
The Italian financial outlet reports that the takeover fee could potentially rise to as much as €1.8bn over the next few years.
RedBird made a late move to join the takeover race for the newly-crowned Serie A winners on 5th May, after Investcorp’s reported €1bn initial bid had appeared to put the Bahraini investment manager firmly in pole position.
Spurs owner Peter Holt exploring Mexican soccer investment
San Antonio Spurs owner Peter J. Holt is among the prospective buyers who have expressed interest in purchasing Mexican soccer club Querétaro F.C., according to multiple people familiar with the talks.
Private communications granting anonymity revealed Holt is looking to make the Liga MX investment personally—separate from Spurs Sports & Entertainment, which operates the Spurs. R.C. Buford, CEO of the Spurs parent, is also part of the potential ownership group, the people said.
Querétaro is currently controlled by Grupo Caliente, which originally sold the club in 2020. The new owners—a group led by Gabriel Solares, Adolfo Ríos, Greg Taylor and Manuel Velarde—were banned from the league for five years after a bloody brawl broke out at the team’s stadium in March. The incident drew criticism from across the football world, including FIFA, who called it “unacceptable and intolerable.”
Premier League backs new strategy for Women’s National League with £1m per season grant
The Premier League is backing the newly launched strategy to boost the third and fourth tiers with a £1m investment per season for the next three seasons in an initiative called Empowering for Success.
The strategy is aimed at strengthening the FA Women’s National League with a focus on helping FA WNL clubs develop players, workforce and infrastructure. This includes key objectives of increasing the number of female coaches creating a pool of dedicated match officials.
The Premier League Stadium Fund will aid infrastructure, with clubs applying for grants for up to £20,000 to improve their stadium facilities.
North America
NFL owners plotting to force out Washington Commanders’ Dan Snyder
National Football League (NFL) franchise owners are ‘counting votes’ on whether to force Dan Snyder to sell the Washington Commanders, according to a report by USA Today.
If 24 of the 32 team owners were to vote in favour, Snyder could be ousted as the owner of the Commanders and forced to sell the team.
Snyder is currently under investigation by the Federal Trade Commission (FTC) and the Virginia attorney general over allegations of financial improprieties.
Bears, Giants among teams that might benefit from NFL ownership percentage change
NFL owners voted Tuesday to lower the minimum percentage of a team that a longstanding owner must control from 5% to 1%, a nod to skyrocketing franchise valuations and the difficulty that trend places on keeping teams in families. And in particular, teams whose core holdings are the team itself.
The new rule only applies to teams that have been owned by the same owner for at least 10 years, and those clubs must have a total of 30% of the franchise controlled by members of the owning family. New owners would still have to own individually at least 30% from the start.
“It’s a recognition of the value of these franchises. When we set the vote at 5%, the value of a franchise was a lot different than it is today,” said Art Rooney II, the Steelers owner and member of the finance committee. “It is just a recognition that to get the 5% today takes a lot more equity.”
Washington Commanders agree to buy $100m site for new Virginia stadium
The NFL’s Washington Commanders have acquired the right to purchase a 200-acre plot of land in Woodbridge, Virginia for $100 million as a potential site for a new stadium, according to local media reports.
The franchise is reportedly planning to build a 60,000-seater dome stadium, as well as a new practice facility, featuring an amphitheatre that could seat between 15,000 and 20,000 spectators. Before progressing, they will need to establish how much public funding the State of Virginia and Prince William County will make available.
The Commanders also plan for the area, which is based 23 miles outside of Washington DC, to include retail stores, bars, restaurants and a residential area.
The team currently play at FedEx Field, which has been the franchise’s home since first opening in 1997. The Commanders’ contract at the stadium expires in 2026, but the team reportedly has the option of extending that further.
Esports, Gaming, & Fantasy
Los Grandes enters CBLOL, purchases 20 percent of Simplicity in Brazil
Brazilian esports organisation Los Grandes will officially enter the CBLOL (Brazil’s franchised League of Legends competition) after purchasing 20 percent of Simplicity Esports’ Brazilian subsidiary Simplicity One.
Simplicity’s Brazilian subsidiary currently runs CBLOL franchise Flamengo Esports. As a result of the purchase, the Brazilian organisation will rename the team Flamengo Los Grandes.
Los Grandes will immediately take over Simplicity’s Brazilian League of Legends operations.
Health & Fitness
MSG Sports and KB Partners invest in micro-weighted apparel brand Omorpho
Micro-weighted sportswear brand Omorpho has raised a $6m seed round led by KB Partners with participation from Madison Square Garden Sports Corp. and Greenchain Capital. The brand aims to challenge the concept of lightweight apparel being optimized for sports and fitness, as its clothing contains small amounts of evenly distributed weight to add resistance while training.
Omorpho’s total funding is now $13m to value the startup at $26m. The company’s brand ambassadors include NFL players Julio Jones, Alexander Mattison, DeeJay Dallas and Britain Covey, as well as US track and field Olympian Annie Kunz. Omorpho’s Gravity Sportswear line spans workout pants, shorts, long and short sleeve shirts and tank tops. The sleeveless shirt adds 1.5 pounds of upper-body resistance, while the G-Vest weighs 10 pounds for men and five pounds for women.
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