67% increase in football “multi-club” M&A deals in the last year

48% of the 31 deals targeting European football clubs last year were multi-club deals
Model seeks to create efficiencies in financial security and transferring and training players
Total deals targeting European football clubs generally increased 35% last year

There was a 67% increase in the number of “multi-club” M&A deals targeting European football clubs over the last year, according to research from international law firm RPC.

The number of such deals increased from nine to 15 in the year ending 31 March 2023.

In the last year, multi-club deals made up 48% of a total of 31 deals targeting European football clubs, compared to 39% of the 23 deals in the previous 12 months.

The multi-club model of ownership, which is experiencing something of a renaissance in recent years, involves multiple football clubs sharing an owner under an umbrella structure.

To navigate various sport’s regulatory considerations, the clubs are usually in separate nations, often sharing support functions and personnel and transferring players between them.

Notable examples of clubs where majority shareholdings were acquired by multi-club groups in the last 12 months include:

• Palermo Football Club, bought by Manchester City owner City Football Group
• BrØndby IF, bought by Crystal Palace and FC Augsburg investor Global Football Holdings

The theory behind the multi-club model of ownership is that a network of clubs facilitates loans and transfers of players between network clubs. Traditional player transfers carry an increased risk that the player will adapt poorly.

However, clubs under one umbrella which share training and playing styles which often see coaches move between clubs, increase cohesion with the aim that players can improve and more quickly integrate into their associated network clubs.

It also enables economies of scale in infrastructure, while global networks of clubs may be more appealing to global brands.

Jeremy Drew, Partner and Head of RPC’s Sports Group, says: “Many deep-pocketed club owners are exploring the multi-club model, so we can expect to see more of these deals in the future.

"Creating international networks of clubs is greatly attractive to owners who are looking to leverage a more global brand appeal – both in terms of multi-club ownership in football, but also across sports, with owners holding stakes in other sports properties such as NFL teams, rugby clubs and more.”

Multi-club ownership is not new. The model lost some popularity in light of regulatory restrictions on teams sharing common owners participating in the same competitions. This proved to be an issue for the owner of Italian club Salernitana, who was forced to sell-up after they were promoted to Serie A, the same league as the owner's other club, Lazio.

There can also be risks associated with utilising a multi-club ownership model when performances on the pitch are not meeting expectations. This includes where the group owners are not investing the capital required to ensure consistent and effective infrastructure.

If one club in the network is suffering, the chances are that others might too (think of Barnsley, Nancy and Esbjerg – all part of the PMG group – all being relegated in the 2021/22 season).

Josh Charalambous, Partner in RPC’s Sports Group, says: "We can expect to see the increase in the multi-club model benefiting women's teams as well. Networks of clubs often implement minimum operating standards and/or facilitate a commonality in shared access to resources and funding.

"We have already seen a women's team-only multi-club deal this year with the tie up between OL Groupe and Michelle Kang's Washington Spirit (who play in the NWSL)".

RPC's findings come off the back of recent research undertaken by the firm in the last 12 months which shows that deals targeting European teams more than doubled in value to £6.9 billion between 2021 and 2022, and that the value of investments into European sport more broadly had increased by 433% to £9.6 billion.

Deals targeting European football clubs increased by 35%, deals by multi-club groups targeting other clubs increased 67%