Newcastle United Owner Said To Discuss Multiclub Move With 777
The US investment group has had exploratory discussions with at least five parties about raising debt and equity, according to the people.
(Bloomberg) -- 777 Partners LLC is considering raising new capital to back its portfolio of football clubs and has held talks with owners of Newcastle United FC about making a potential investment, people with knowledge of the matter said.
The US investment group has had exploratory discussions with at least five parties about raising debt and equity, according to the people. These include PCP Capital Partners, the advisory firm of British businesswoman Amanda Staveley that is also an investor in English Premier League club Newcastle United, they said.
Staveley played a role in brokering the 2021 takeover of Newcastle United by Saudi Arabia’s Public Investment Fund. Any investment in 777 may include money from the sovereign wealth fund, one of the people said, who asked not to be identified discussing confidential information.
Deliberations are in the early stages and there’s no certainty they’ll lead to any debt or equity being raised, the people said. Representatives for 777, PCP and PIF declined to comment.
An investment by PIF would expose the wealth fund to the increasingly popular world of multiclub ownership in football.
Miami-based 777 is led by managing parters Steven Pasko and Josh Wander. Since striking a deal for Italy’s Genoa Cricket and Football Club in 2021, it’s gone on to invest in Paris-based Red Star FC, Belgium’s Standard Liège, Vasco da Gama in Brazil, Spain’s Sevilla FC and Melbourne Victory FC in Australia. More recently, it’s taken a majority stake in German Bundesliga team Hertha BSC and been weighing an investment in Premier League club Everton FC.
Proponents of this approach to ownership often point to the long-term benefits of cost synergies, the sharing of talented players and potential to strike more lucrative sponsorship deals. Fan groups and other critics, meanwhile, have expressed concerns that it stifles competition and creates feeder teams with no real prospect of success.
Other multiclub owners include Paul Conway’s Pacific Media Group, John Textor’s Eagle Football Holdings LLC and Abu Dhabi’s City Football Group Ltd., the owner of Premier League champion Manchester City FC.
777 is aiming to turn a profit by the 2023/24 season on revenue of €350 million ($373 million) across its group, one of the people said.
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