Private equity has been moving into football. To some extent this is a matter of the pandemic creating distressed assets available at below value prices. However, it is not just a matter of potential bargain deals and replacing cash with cheap debt on the balance-sheets of clubs.
According to Dr. Dan
Plumley and Dr. Rob Wilson from Sheffield Hallam University the private equity
industry have spotted quite a few of the key elements in the football industry
essential to how and where they invest.
”Clubs are
essentially recession proof assets. Sport is an inelastic product, not a luxury
but a necessity for many...This provides private equity and its supporting cast
with a longer game to play in the sporting investment stakes,” they told offthepitch.com
Private Equity might
take a different approach going into the industry, where “…the appeal of
leagues over clubs is a longer-term approach to growth as they are less
volatile performance wise.”
One thing could cool
down private equity’s future interest in the industry: regulatory bodies that
will lay down commercial frameworks that will govern the future of their
sports.
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