European Football’s Private Equity Playbook
UK & EU PE managers are uniquely positioned to capitalized on the insatiable appetite of U.S. LPs to invest in sports clubs. US investors are increasingly interested in investing in European Football—particularly in the Premier League and Serie A, which often look to operate a multi-club ownership structure, according to PitchBook.
PitchBook looked at the top 5 football leagues in Europe: Germany, Spain, France, England, and Italy. The number of clubs in those leagues with U.S. investors ranges from 1 in Germany to 13 in England. As U.S. investors continue to have an appetite for sports investing, European private equity managers are the best positioned, culturally, geographically, and legally to take advantage.
While the cultural and geographic leg up is self-evident, the legal edge flows from Rule 203(m)-1(b) under the Investment Advisers Act of 1940. Certain UK & EU PE managers can take U.S. LP capital regardless of AUM and remain an exempt reporting adviser, unlike their U.S. counterparts who must register with the SEC and bear a stiffer cost of compliance once AUM reaches $150 million. This is a regulatory superpower for UK & EU managers that already possess a cultural and geographic advantage. These managers should pursue ERA status to accept capital from the U.S. investors.
PitchBook notes:
“There have been ownership changes in 19 clubs over the last two years, with 13 including participation from a PE or VC firm.”
“The number of Big Five clubs that are part of multi-club ownership continues to rise—with roughly 48% of teams now included, up from 42% two seasons ago.”
Private equity and venture capital firms back 36% of clubs in Europe’s top five football leagues—England, Germany, Spain, France, and Italy—with England’s Premier League leading at over half of its 20 clubs, per PitchBook. As noted above, U.S. investors hold stakes in 13 English clubs, one German club, and others, often through multi-club ownership models, with 48% of Big Five clubs now part of such structures, up from 42% two seasons ago. European PE managers gain a regulatory edge under Rule 203(m)-1(b) of the Investment Advisers Act, allowing them to accept U.S. LP capital without SEC registration , unlike U.S. PE managers who face stricter compliance costs at $150 million in AUM. This advantage, combined with cultural and geographic proximity, positions European managers to dominate investments in European clubs.
Cross-border fundraising for football investments requires compliance with applicable rules on fund formation, disclosures, and conflict management. Sabal Law PLLC leverages its regulatory experience to guide general partners and limited partners through these complexities, ensuring robust fund structures. Our incubator platform offers alternative fee arrangements to support emerging managers and non-U.S. funds seeking ERA status, easing cash flow challenges. Schedule a Consultation to structure your next fund raise for your sports club deal!