24/7 Market News Publishes Report on the Multi Club Ownership Movement Featuring Brera Holdings

DENVER, Colo., May 08, 2024- 247marketnews.com, a pioneer in digital media dedicated to the swift distribution of financial market news and information, today publishes a news report on sports centric investment banking and the growing Multi Club Ownership (“MCO”) movement and companies playing a key role, featuring Brera Holdings PLC (NASDAQ:BREA), a company democratizing MCO.

The Research: PitchBook reported that football (soccer) merger and acquisition deal value grew from €66.7 million, in 2018, to €4.9 billion, by 2022, and that was projected to nearly double in 2023. The growth is due in large part to private equity, as assets under management more than doubled, from €2.1 trillion in 2013 to €4.6 trillion in 2022, and American ownership of European football clubs grew in tandem. Another turnover driver was the number of financially distressed clubs, following Covid-19.

PitchBook maintains that most private equity investors are looking to identify clubs that have attractive potential revenue growth and operational efficiency improvement scenarios.

Sports industry merger and acquisition activity increasing, while deal flow for many other industries is slowing down, makes sense, as sports continues to pull in record viewership numbers around the world.

Brera Holdings (NASDAQ:BREA)

Brera Holdings PLC (NASDAQ:BREA) is democratizing sports ownership with its high transparency model and they’re on an acquisition spree; buying professional football (soccer) teams in Macedonia, Mongolia and Mozambique and a women’s professional volleyball team. Brera also has a $100 million shelf offering to acquire a second-tier team or two.

Pierre Galoppi, Brera’s CEO, stated, “In addition to acquiring clubs that have significant upside potential, our goal is to partner with clubs that share our fundamental belief in player culture and development. By aligning Brera with high profile clubs and partners who share our vision, we believe it will unlock several layers of player progression and deliver new revenue streams by building champions, as opposed to buying them.”

Brera added Maria Xing, its new Head of Investments and Corporate Development, to an all-star Advisory Board that includes Alan Rothenberg, who was president of U.S. Soccer, established of Major League Soccer (“MLS”), and oversaw the 1994 FIFA World Cup, which is still regarded as the most successful FIFA World Cup, chairman of the 1999 Women’s World Cup, and was instrumental in the awarding of the 2026 FIFA World Cup to the U.S., Canada, and Mexico.  Other advisory board members include sports business leaders Paul Tosetti and Marshall Geller, football icon, Giuseppe Rossi, and luxury lifestyle executive, Massimo Ferragamo

Xing specialized in MCO football group investments for 777 Partners, where she was involved in sourcing, direct negotiations, due diligence, and closing deals, including acquiring a controlling stake in Brazilian Serie A football club, Vasco da Gama, and investing in Australian Premier League (“A-League”) side, Melbourne Victory FC, as well as professional sports franchise portfolio management, including topflight professional football clubs in Italy, France, Germany, and Belgium, and international business development for Liverpool Football Club.

The research: Science Direct’s Sports Economics Review stated the rewards for a promoted second tier side have lasting impacts and estimated to add $238-$280 million in value over the next 7 years. Similar negative results follow the unlucky relegation teams.

Italian media covers Brera’s acquisition talks

TuttoB reported, in March, that the owner of Calicio Lecco 1912 were in negotiations to sell the club, but the talks stalled when the sides couldn’t agree on a sales price. The professional football team has a long history, but has not played in a Serie A since the sixties.

April 18th, BSO Sport stated that a Nasdaq listed company wants to buy Brescia: Offer $20 million. The company Brera Holdings, which has its operational headquarters in Milan: Celino’s response is awaited.

On April 19th, Pianeta Seiri B news site reported that Brera Holdings presented Cellino an offer to buy Brescia Calico Club for around $20-25 million euros. Brescia Calcio played in Serie A as recently as the 2018-2019 season and with new partners, additional funding could easily give Brera Holdings a shot at making a big run in Italian soccer.

The research: According to the US Private Equity Investments in European Football report, there are multiple factors driving US private equity’s interest in European football clubs, starting with the sector’s steady asset valuation growth.

The Football Benchmark 2023 Football Clubs’ Valuation report stated that the aggregate enterprise value of the 32 most prominent European football clubs increased by 96% in the seven-year period from 2016 to 2023, exceeding the FTSE 100 Index.

Key revenue stream growth, like media rights and sponsorships, are expected to accelerate, as streaming services, including Amazon and Apple, compete with traditional broadcasters for live sporting event broadcast rights.

Plus, European clubs are expected to benefit from the legalization of gambling in the United States.

Unlike the major US sports leagues, European sports governing bodies have less restrictions for private equity investments, while often providing greater growth opportunities than similar US investments.

Goldman Sachs (NYSE:GS) introduced its Sports Franchise in Investment Banking division, in September 2023, to provide its wealthy clients access to investments in sports teams, leagues, and stadiums, as sports franchise values are projected to continue to surge. The move follows Goldman’s involvement in the AS Roma, Chelsea FC, Formula One, and Tennessee Titans transactions.

The research: The Valuations of Sports Teams on the Rise: A Tale of Two Continents report stated that sports are being consumed, globally, at greater rates than ever and it’s not surprising that sports team valuations are increasing in tandem with the popularity growth, as broadcasting revenue and other revenue streams become more valuable.

JPMorgan Chase (NYSE:JPM) officially threw its hat in the ring when it announced, in March, that it created a new “Sports Investment Banking Coverage” team, in a move that allows the bank to tap an increasingly profitable industry. JPMorgan worked on several high profile sport deals, including Manchester United (NYSE:MANU), Juventus FC, Liberty Media/Formula One, and World Wrestling Entertainment

JPMorgan’s global head of media and communications, Fred Turpin, wrote the memo, which further stated, “With top sports franchises in the U.S. and Europe now valued at more than $400 billion in total, sports have become an increasingly large asset class, attracting more and more institutional investors.”

The Timing: US interest in football is expected to increase as the US hosts the 2024 Copa America, the 2025 FIFA Club World Cup, and the 2026 FIFA World Cup, which some experts project will “explode” the sport’s popularity and even has Newsday asking if US viewership of the 2026 World Cup could exceed the Super Bowl.

Additionally, Welcome to Wrexham just kicked off its third season and the show’s popularity and engagement continues to grow.

Although Brera Holdings announced a $100 million mini shelf registration for upcoming acquisitions, management has held their cards close to the vest, but the conventional wisdom is that Brera plans to take advantage of the same dynamics that have benefited Ryan Reynolds and Rob McElhenney following their Wrexham acquisition.

One big difference being Brera Holdings is looking for another team in Italy, where value is still available and team valuations are projected to rise as the big spenders continue to price the more professional English football clubs out of reach.

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