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Exeter shows limits of fan ownership model

The financial troubles at fan owned Exeter City continue: https://www.bbc.co.uk/sport/football/articles/c3ede8g785zo

The club has a good record of developing players in its Academy and selling them on, but there are obvious risks in a financial model based on player sales.   Of course, many big clubs are also very reliant on player sales, but they also have other substantial revenue streams they can draw on.

I have always been sceptical about the financial viability of fan ownership - AFC Wimbledon are in an affluent part of a global city and even they have been looking for outside investors.

You either need a benefactor (e.g.., Brighton) or a private equity company willing to take risks to make a capital gain.

Consider this announcement made today which confirms the interest of finance capital in sports teams.  Arctos Partners has been one of the most prolific purchasers of sports assets including a minority stake in Liverpool FC.

Today the private equity firm KKR will announce it’s acquiring Arctos for $1.4bn, the Financial Times scoops, in a deal that the sports investing pioneer believes will allow it to scale up and globalise its business. “The partnership with KKR unlocks the full potential of our team,” a spokesman told the Pink ‘Un. “It’s going to allow us to dream a bigger vision and win.”

Arctos, which manages more than $15bn in assets, is hoping to leverage KKR’s vast investment teams to offer sports clients new options in financing stadiums and media rights deals. KKR has its eyes on more than stakes in some of the world’s most popular sports teams, though it believes those will be appealing to retail investors while it searches for future asset growth.


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