M&A

4 June 2020 - 12:01 PM

Photo

PA Images | Former Southampton chairman Ralph Krueger (left) with majority owner Gao Jisheng (centre) and minority owner Katharina Liebherr in the stands before a Premier League match at St Mary's, Southampton. Southampton is one of the clubs in UK in search of a new majority owner.

Institutional investors looking to capitalise on market depression but face hurdle from sceptical club owners

  • Investors have become aware of the lower entry price as a result of the coronavirus crisis, according to an M&A expert.
  • However, most club owners recognise their depressed valuations are likely to recover in 18-24 months.
  • An sports investment advisory has seen increased interest from particularly US private equity firms looking to take minority positions in clubs before the market rebounds.
  • The risk is bigger in football, but many see great opportunities to make money.

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