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

4 June 2020

M&A
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.

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.

Emil Gjerding Nielson and Kasper Kronenberg nielson@offthepitch.com

The coronavirus pandemic has caused financial problems for clubs all over the world - but if history has taught us anything, it is that it often repeats itself.

Whenever there is a crisis on a global scale, there is also a significant number of changes in ownership in industries all over the world - and this time it seems like the football industry will go through some major changes of its own.

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