Plans for private ownership of A-League still on table after FFA talks with US firm


Plans for private ownership of A-League still on table after FFA talks...

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Not sure where this fits:

https://analytics.twitter.com/mob_idsync_click?slug=AfK9sMON6z&idb=AAAAEIAYhTMY0KvJLwrtz5cTp_18ckG8nQn9gaJir1UtROaBpq94vW3CSmFjGRADy2BY18rZjkxxCelM8QEjOpDC51yuejzZn6ylP3m94X7UL36dCBKHmsIFprxLw1BuXFK7_8pGXakryrEVVUPQOaaFX5p9Ik_c&ad_tracking=false&tailored_ads=false

FIFA releasing US$150m if funds early to member organisations early as part of the crisis response, with more to follow. 

The good news is this helps separate the dependency of the FFA and HAL 

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scott20won - 25 Apr 2020 1:47 PM

“News out of any national sporting body seldom rates a mention for dealmakers.

 But what about this line in a nondescript media release from Steven Lowy's Football Federation Australia: "FFA's intention to review the operating and ownership structure of the Hyundai A-League in order to attract more investment and increase the value of the league was also discussed."
 Got that?
 FFA is doing a Wesfarmers or Suncorp and, quite publicly, hanging up the for sale sign by telling anyone who is listening that it is considering ownership options for the country's football league.
 One option Street Talk is told that is actively under consideration is some sort of private equity involvement.
 It's accepted inside FFA that the current model is broken. FFA runs small losses, clubs run losses, television networks are bleeding and everyone thinks everyone else is getting too much.
 What's needed is a cash injection – and preferably one big hit to make one substantial step forward than try and do it the hard way.
 It sounds like a private equity job, if ever there was one. Think Archer Capital buying a 65 per cent stake in V8 Supercars for $180 million or global giant CVC investing in Formula One racing.
 The question is who's willing to tip in the money and what would they be buying? We know private equity firms will look at anything they think they can turn a dollar out of, particularly if there is a regional growth story that can play out and be used to find an exit after a few years. It's hard to see one of the traditional media companies investing in the sport, given issues in their own backyards, while the elusive sports management companies are often talked about as acquirers but are yet to really put their money where their mouth is on these shores. As for what would be offered – dealmakers know the Lowys love a restructuring deal.
If there is there is one thing FFA chair Steven Lowy wouldn't want to give away, it is control.
 How could a private equity investor make it work without taking control? That's the issue for investment bankers.
 You can bet there are some smart types at UBS who will be asked to make a few calls and see what is out there. After all, Matthew Grounds and Guy Fowler were integral to FFA's recent $254 million TV deal with Fox Sports. 
UBS Australia's top brass have an ongoing relationship with the Lowys, and FFA seems to be an extension of the mandate. 

http://www.afr.com/street-talk/ubs-could-score-in-ffa-private-equity-play-20170219-gug8db#ixzz4ZJh9FHMW

Hardly a new concept. This is Stevens legacy.

it was also written into the independence deal - that FFA gets a cut from any future sales of the league. 

Just been reported - "Think Archer Capital buying a 65 per cent stake in V8 Supercars for $180 million" or global giant CVC investing in Formula One racing.
V8Supercars is now worth 1/2 what they paid as TV deal talks falter (2017 article) .  SLowy is long gone.

Clear Contact There

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libel - 25 Apr 2020 1:51 PM
Waz - 25 Apr 2020 1:45 PM

That remains to be seen. But of course, Americans do love their Soccer...

Plenty of them losing billions in the EPL every season tbh.
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Waz - 25 Apr 2020 1:45 PM
libel - 25 Apr 2020 1:39 PM

More trustworthy than any Lowy that’s for sure 

That remains to be seen. But of course, Americans do love their Soccer...
Edited
5 Years Ago by libel
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“News out of any national sporting body seldom rates a mention for dealmakers.

 But what about this line in a nondescript media release from Steven Lowy's Football Federation Australia: "FFA's intention to review the operating and ownership structure of the Hyundai A-League in order to attract more investment and increase the value of the league was also discussed."
 Got that?
 FFA is doing a Wesfarmers or Suncorp and, quite publicly, hanging up the for sale sign by telling anyone who is listening that it is considering ownership options for the country's football league.
 One option Street Talk is told that is actively under consideration is some sort of private equity involvement.
 It's accepted inside FFA that the current model is broken. FFA runs small losses, clubs run losses, television networks are bleeding and everyone thinks everyone else is getting too much.
 What's needed is a cash injection – and preferably one big hit to make one substantial step forward than try and do it the hard way.
 It sounds like a private equity job, if ever there was one. Think Archer Capital buying a 65 per cent stake in V8 Supercars for $180 million or global giant CVC investing in Formula One racing.
 The question is who's willing to tip in the money and what would they be buying? We know private equity firms will look at anything they think they can turn a dollar out of, particularly if there is a regional growth story that can play out and be used to find an exit after a few years. It's hard to see one of the traditional media companies investing in the sport, given issues in their own backyards, while the elusive sports management companies are often talked about as acquirers but are yet to really put their money where their mouth is on these shores. As for what would be offered – dealmakers know the Lowys love a restructuring deal.
If there is there is one thing FFA chair Steven Lowy wouldn't want to give away, it is control.
 How could a private equity investor make it work without taking control? That's the issue for investment bankers.
 You can bet there are some smart types at UBS who will be asked to make a few calls and see what is out there. After all, Matthew Grounds and Guy Fowler were integral to FFA's recent $254 million TV deal with Fox Sports. 
UBS Australia's top brass have an ongoing relationship with the Lowys, and FFA seems to be an extension of the mandate. 

http://www.afr.com/street-talk/ubs-could-score-in-ffa-private-equity-play-20170219-gug8db#ixzz4ZJh9FHMW

Hardly a new concept. This is Stevens legacy.

it was also written into the independence deal - that FFA gets a cut from any future sales of the league. 
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libel - 25 Apr 2020 1:39 PM
yeah, nothing to see here - if there's anyone you can trust to "put football first", its an American sports marketing firm...

More trustworthy than any Lowy that’s for sure 👍
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yeah, nothing to see here - if there's anyone you can trust to "put football first", its an American sports marketing firm...
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CS - 25 Apr 2020 9:38 AM
Doesn't worry me.  The important thing is that the competition can be adequately capitalised.

The core problem with the A League has been lack of money from the outset.

Agreed. By all accounts they’re not worried about getting another tv deal if Fox walk, but there is a recognition that it won’t be at the level they’re used too so if this injects funds in to the competition then do be it. 

At least the focus will be on making the competition work and not getting distracted by other footballing matters. 

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scott20won - 25 Apr 2020 2:31 AM

“Plans for private ownership of A-League still on table after FFA talks with US firm



The A-League could fall under the private ownership of a global sports management firm with Football Federation Australia not ruling out selling off a stake in the competition to bring investment into the game. The A-League is braced for a major financial blow should broadcaster Fox Sports walk away from the final three years of its TV deal and is already looking for alternative revenue streams.
The Sydney Morning Herald can reveal a third-party private ownership model will be seriously considered as a means to draw much-needed investment into the league. FFA has already laid significant groundwork to sell a stake in the competition.

An evaluation was conducted last year that deemed the A-League worth between $100 million and $120 million. After that evaluation, FFA held talks with two overseas-based firms about selling between 30 per cent and 51 per cent of the A-League. The identity of one of those firms remains unknown but, according to sources close to the negotiations, the other was American sports marketing firm IMG. The New York-based company has a history of buying into sports competitions, having launched the Indian Super League in 2013. IMG part-owned the ISL until 2018.
 Discussions cooled in the months before the COVID-19 pandemic struck but had not died. There is a strong chance those talks will be revisited if Fox Sports pulls the plug on its 15-year partnership with FFA by terminating its $57 million a year broadcast deal.
 FFA declined to comment on negotiations with Fox Sports when contacted by the Herald but senior sources at the organisation did not rule out selling A-League equity if the TV deal was cut short. A-League clubs, FFA and the players union remain in the dark about Fox Sports' intentions. The pay TV provider did not make its final quarterly payment of this season's deal, which was due last week.

The A-League is suspended indefinitely due to the pandemic with FFA vowing to resume the season only when it gets the green light from federal and state governments.
 Meanwhile, private investors are also circling A-League clubs in the hope of a finding a bargain. Park Lane, a US investment bank which specialises in helping cashed-up clients buy sporting teams, is keeping an eye on all major Australian sports, including football, and has already made an informal approach to one A-League club. ....”

https://www.brisbanetimes.com.au/sport/soccer/plans-for-private-ownership-of-a-league-still-on-table-after-ffa-talks-with-us-firm-20200424-p54n1g.html


So FFA take backtrack on Independent League from Clubs and sell shares?
Doesn't sound like FFA at all.  

Clear Contact There

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Doesn't worry me.  The important thing is that the competition can be adequately capitalised.

The core problem with the A League has been lack of money from the outset.
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Oh dear...
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“Plans for private ownership of A-League still on table after FFA talks with US firm



The A-League could fall under the private ownership of a global sports management firm with Football Federation Australia not ruling out selling off a stake in the competition to bring investment into the game. The A-League is braced for a major financial blow should broadcaster Fox Sports walk away from the final three years of its TV deal and is already looking for alternative revenue streams.
The Sydney Morning Herald can reveal a third-party private ownership model will be seriously considered as a means to draw much-needed investment into the league. FFA has already laid significant groundwork to sell a stake in the competition.

An evaluation was conducted last year that deemed the A-League worth between $100 million and $120 million. After that evaluation, FFA held talks with two overseas-based firms about selling between 30 per cent and 51 per cent of the A-League. The identity of one of those firms remains unknown but, according to sources close to the negotiations, the other was American sports marketing firm IMG. The New York-based company has a history of buying into sports competitions, having launched the Indian Super League in 2013. IMG part-owned the ISL until 2018.
 Discussions cooled in the months before the COVID-19 pandemic struck but had not died. There is a strong chance those talks will be revisited if Fox Sports pulls the plug on its 15-year partnership with FFA by terminating its $57 million a year broadcast deal.
 FFA declined to comment on negotiations with Fox Sports when contacted by the Herald but senior sources at the organisation did not rule out selling A-League equity if the TV deal was cut short. A-League clubs, FFA and the players union remain in the dark about Fox Sports' intentions. The pay TV provider did not make its final quarterly payment of this season's deal, which was due last week.

The A-League is suspended indefinitely due to the pandemic with FFA vowing to resume the season only when it gets the green light from federal and state governments.
 Meanwhile, private investors are also circling A-League clubs in the hope of a finding a bargain. Park Lane, a US investment bank which specialises in helping cashed-up clients buy sporting teams, is keeping an eye on all major Australian sports, including football, and has already made an informal approach to one A-League club. ....”

https://www.brisbanetimes.com.au/sport/soccer/plans-for-private-ownership-of-a-league-still-on-table-after-ffa-talks-with-us-firm-20200424-p54n1g.html


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