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Fin companies holding on sports teams

Jul 3, 2024

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When it comes to sports, it’s possible to argue that the sporting side of things has become secondary for the people who own the organizations.

While sports teams can be the heartbeat of many communities and global cultures, with many engaging in the sport betting options that Betway can provide, they have since evolved into a business venture for the many who find their own potential opportunities that they can try and cash in on.

It’s no real shock or surprise in today’s age that money is a big part of sports, with investment needed to make teams or franchises be as great as they can and compete for the biggest titles. Whether it be soccer, American football, basketball, or any other professional sport, it’s not uncommon to see them be backed by billionaire or millionaire ownership.

Financial companies behind sports teams

Given the amount of money that is involved in professional sports and the investments that are required, it has become an industry that financial companies have decided to try and get diversify their own portfolios into. As the saying goes, sports teams have essentially becoming a billionaire’s new shiny toy.

Wherever you look across professional sports, you’ll find several different financial companies in a holding position at a sports team. The Premier League, which is one of the most-watched soccer leagues in the world and wagered on with sites like Betway, has several of its biggest clubs being backed by investment capital firms, with more potentially on the way.

Chelsea’s reported $5.2 billion takeover by Clearlake Capital is one of the most recent instances whereby this has proven to be true. Everton were potentially going to be acquired by 777 Partners, a private investment firm that already has stakes in several clubs around the world in the sport, but decided to pull out against going any further in their pursuit for the Toffees. Nonetheless, The Friedkin Group may now look to seal a deal, having already experienced their own taste in soccer with ownership of AS Roma in Italy’s Serie A.

Why are financial companies owning or investing in sports teams?

You’d assume that there would be a lot of money involved in professional sports given how much athletes are able to earn, how much tickets can cost to attend events, and the money that can be generated by teams, right? Wrong.

In truth, sports teams are a losing business and one that will usually provide a business with several losses over a period of time. It’s the wrong type of business if a company is looking to find a quick way of generating a profit.

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So, why do so many financial companies get involved in professional sports ownership? A profit can be made, but it won’t be guaranteed and can take numerous years to be achieved. However, most will use the opportunity to increase their profile and reputation among the sporting community and use the exposure in other ways to help drive their main business aims together.

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