Has it been done before in Aus ? Sure soccer clubs, but on this scale?
-
AFLW 2024 - Round 9 - Indigenous Round - Chat, game threads, injury lists, team lineups and more.
2021 NON AFL Thread - finance, ratings, participation etc.
- Thread starter The_Wookie
- Start date
- Tagged users None
- Status
Has it been done before in Aus ? Sure soccer clubs, but on this scale?
Lots of lofty projects have failed.
AFL - Swans private ownership. AFL club in the U.S.A., AFL IN China.
NRL - Superleague say no more. Private ownership and media ownership.
RU - Super Rugby
NFL - plethora of American Football leagues
CFL - Canadian Football tried to expand into the U.S.A.
- Thread starter
- Moderator
- #978
None of these are quite the same as having a private enterprise taking a 33% share in the league itself in return for a direct investment of 140m. The same enterprise bought 10% of City Football Group (owners of Manchester/Melbourne City) not long ago, and has plans to take a 7.5 per cent stake in NZ Rugby’s commercial operations
This hasnt happened in Australia with any league.
I know this just like I knew someone would come back with this retort
that's why I framed my answer as " Lots of lofty projects have failed. "
There have been lots more ambitious projects than this that have failed.
You think doing something slightly different is going to protect one from failure?
Of course the AFL showed how conservative it is by not buying out CH10.
- Thread starter
- Moderator
- #980
Its not a retort, its a statement of fact. The examples cited are not relevant to soccer or the APL or the investment strategy under discussion.
Over the past 18 months, Private Equity firms have taken on passive stakes in professional sports franchises and in leagues after the NBA, MLB and Major League Soccer loosened ownership rules to include institutional investors.
Similar things include
- CVC Capital Partners taking a 28% interest in the Guinness PRO14 Rugby league, London-based CVC invested £116 million ($141 million) in the PRO14 league.
- CVC have bought a minority shareholding, understood to be about 27% in Premiership Rugby.
- Between 2006 and 2017, CVC turned a $2.1 billion investment in Formula 1 into a $4.4 billion sale to Liberty Media.
- CVC Fund VII will invest up to £365 million for a 1/7th share in Six Nations Rugby, working alongside the rugby unions of England, France, Ireland, Italy, Scotland & Wales, which will together retain a 6/7th share
- Over 50% of the owners of EPL clubs are corporate investors, private equity firms and hedge funds
- CVC signed a 2.25bn deal with La Liga for an 8.25 per cent share in a company comprising of LaLiga’s media rights assets for the next 50 years
- When Endeavor closed a deal to obtain a controlling interest in the UFC back in 2016 for just over $4 billion, the company partnered with several private equity firms to help raise the cash for the sale. Those private equity companies, including Silver Lake Partners, ended up owning around 40 percent of the UFC as a result.
- In March, RedBird acquired a 10% stake in Fenway Sports Group, which owns the Boston Red Sox, Liverpool FC and media outlets, in a deal that values the group at $7.4 billion.
Its not even slightly different, its a hell of a lot different.
These massive equity firms arent Tinkler or Palmer or Edelston. They arent even Murdoch and Packer. These are global corporate giants, well beyond the norm for Australian sport.
I was commenting on the PE investment, thats what is different. PE traditionally is looking for big returns.
It's the vibe.
That's what you get for posting cryptic statements.
There were some huge PE investments in the examples I stated.
About the only PE style investment in Aus sport I recall was Supercars where SEL tossed some money about in the early 90s, turned a disjointed section of motorsport into a professional operation & sold out to Archer Capital (65%):
https://www.speedcafe.com/2011/05/17/v8-supercars-confirms-new-ownership-structure/
I wouldnt call the Swans private ownership fiasco or the Eagles/Indian Pacific float a PE style deal either but if you want, so be it.
Here is the Supercars example:
V8 Supercars boss Tony Cochrane reveals series was purchased for just $52,000 in 1996
Cochrane's fortune from V8s
www.foxsports.com.au
A classic PE play.
The NFL announces a global strategy for expanding its appeal and influence, granting 18 of its clubs rights to pursue marketing to assigned countries, including commitments to hold matches in those countries. The LA Rams have been assigned Australia, along with China.
- Thread starter
- Moderator
- #987
It was to be expected the soccer last night on 10 (60,000) would get slaughtered by the Cricket (1,560,000)!
I wonder how many times a major FTA TV channel has rated only 60,000 in prime time for live sport on a Sat night?
I wonder how many times a major FTA TV channel has rated only 60,000 in prime time for live sport on a Sat night?
Last edited:
Why change the goalposts ? I clearly stated world-wide examples.
- Thread starter
- Moderator
- #990
Hes made far more relevant examples to this than anything you provided not least including the australian sporting context - as well as answering his own question, which you didnt bother with.
And I provided far more similar worldwide examples of the investment type that is being demonstrated by Silverlake with the APL - establishing that this sort of thing is far more prevalent now than it has ever been.
Bjo187
Premiership Player
- Apr 30, 2020
- 3,864
- 5,483
- AFL Club
- Essendon
Surprising, I actually watched the a league last night it was a great game.
I dunno, but Channel 10's 4.1% share for the night has to be one of its all time lowest. It finished not just behind SBS, but behind 7mate as well.
It remains utterly perplexing to me that a commercial channel that wants to make a profit would continue with this. It's deadset suicide.
On Silverlake, i'd love to know what rights they have to any of the income. Presumably things like TV rights and other sources of APL income gets distributed to clubs net of expenses. Does Silverlake now get a third of all of those distributions? That's a hell of a chunk of the clubs income for eternity.
I actually stated that i was coming from the broad picture.
So answering your own question is considered good ?
I don't bother with lots of stuff that are so cryptic or broad tor so loss in previous threads that it's undecypherable.
Yet completely ignored commercial giants that have invested much more money in projects and lost.
They also were supremely confident and had don't due diligent research.
At the end of the day - the proof is in the making and that is not evident.
And yes, it's very early days and we will have to wait a long time
Until then everything is conjecture.
Will be interesting to watch how the LA Rams go about it. I do not follow the NFL however plenty seem to do so and it is covered by a FTA channel in Oz.
The CH9 night news in Perth announcers are always talking about it in the Sports section.
- Thread starter
- Moderator
- #995
and thats fair enough. All we can do for the moment.
- May 13, 2012
- 15,812
- 5,968
- AFL Club
- GWS
- Other Teams
- Brumbies, Socceroos
It was a very good game, but they are absolutely disastrous ratings.
SBS could run a rubbish soapie from Syria and get more ratings than that.
Understanding PE & sport:
Clarry helped his private equity company acquire Formula One racing in 2006 for $2 billion, a move that produced a 500% return in the ensuing decade. He’s followed that up this year with a €2.1 billion ($2.4 billion) investment in La Liga, Spain’s top soccer league; a £365 million ($490 million) stake in rugby’s Six Nations, the annual tournament between the top national teams in Europe; and a £219 million deal with the International Volleyball Federation, the sport’s governing body. Clarry is also negotiating a €1.7 billion stake in Italy’s Serie A soccer league and a $600 million cash injection into the governing bodies of tennis.
Bloomberg - Are you a robot?
www.bloomberg.com
Clarry helped his private equity company acquire Formula One racing in 2006 for $2 billion, a move that produced a 500% return in the ensuing decade. He’s followed that up this year with a €2.1 billion ($2.4 billion) investment in La Liga, Spain’s top soccer league; a £365 million ($490 million) stake in rugby’s Six Nations, the annual tournament between the top national teams in Europe; and a £219 million deal with the International Volleyball Federation, the sport’s governing body. Clarry is also negotiating a €1.7 billion stake in Italy’s Serie A soccer league and a $600 million cash injection into the governing bodies of tennis.
- Thread starter
- Moderator
- #998
up against a day/night test with Australia winning? i dont think any summer sport could take that on, even the winter sports might fall before that.
- May 13, 2012
- 15,812
- 5,968
- AFL Club
- GWS
- Other Teams
- Brumbies, Socceroos
I can understand that perspective, and there will be some truth in that.
But it is possible to throw up counter arguments.
1. repeats of NCIS are getting higher ratings on Bold, that by itself almost makes it untenable that you keep the A-League on the main channel.
2. SBS defeating Ten for two or three weeks in a row.
3. Even the Ten news is failing to make the top 20. Now this suggests a broader issue with Ten, for sure, but equally we can say with confidence that the A-League does not have a halo effect, if anything, sort of does the opposite for the network.
- Moderator
- #1,000
excluding Tassie, judging by the poorly designed map.
Probably the last home game for the Season for the Wildcats. A good way to finish it off. It was over capacity by 4 people
(The arena should only hold 13,611The NBL was dead 10 years ago. Larry will make a killing if he sold the league now. He brought it for only $7 mil.
- Status
Similar threads
