Brera Holdings Plans on Using Latest High-Profile Investment in Publicly-Traded Sports Company to Increase Its Industry Profile
- Brera Holdings PLC is the only publicly-listed multi-club ownership company in the world, holding six assets in its professional sports team portfolio.
- The proactive search for an Italian Serie B football club target aims to bring multi-club ownership of the highest tiers of professional sports ownership to mass investors through the Company's Nasdaq-listed shares.
- Sir Jim Ratcliffe's proposed 25% stake acquisition in Manchester United, valued at $1.34 billion, is set to be fully funded by his Trawlers Limited entity.
- None.
Insights
The acquisition of a significant stake in Manchester United by Sir Jim Ratcliffe signals a strategic move with potential ripple effects across the sports and entertainment industry. The purchase price of $1.34 billion for a 25% stake places a high valuation on the club, suggesting confidence in the future revenue streams and profitability of Manchester United. The investment by a high-profile individual also brings a spotlight to the concept of multi-club ownership (MCO), which could drive investor interest in Brera Holdings as it stands as the only publicly-listed MCO company.
From a market perspective, this move could set a precedent for valuations of sports franchises and could attract new investors to the market. The trend towards MCO might encourage other investors to explore similar opportunities, potentially leading to increased M&A activity within the industry. Moreover, the strategic intent behind such acquisitions often includes synergies in player development and transfers, which can enhance the competitive edge and financial performance of the clubs involved.
Assessing the financial implications of Sir Jim Ratcliffe's investment in Manchester United, the transaction price at $33 per share represents a significant premium over the current market price. This premium may reflect anticipated operational synergies, brand value and future growth prospects. For shareholders of Manchester United, this could be a positive indicator of the intrinsic value of their investment.
For Brera Holdings, leveraging the MCO model could lead to diversified revenue streams and potentially reduce risk through geographical and market segmentation. However, investors should be cautious of the complexities and potential conflicts of interest inherent in MCO structures. The ability of Brera to effectively manage multiple clubs and capitalize on synergies will be critical to their long-term success and will require close monitoring by investors.
The sports economy is unique in its fan-driven revenue model, which includes broadcasting rights, merchandise sales and match-day revenues. The acquisition by Sir Jim Ratcliffe, a seasoned business leader, could bring new management strategies and investments in Manchester United that enhance these revenue streams. Furthermore, the MCO approach adopted by Brera Holdings could optimize player development costs and generate additional income through player transfers.
From an economic standpoint, the transaction underscores the growing financialization of sports, where market principles and investment strategies are increasingly applied to sports teams. This trend has the potential to alter the competitive balance within leagues, as teams backed by substantial financial resources may gain advantages in acquiring talent and investing in facilities.
Sir Jim Ratcliffe to Acquire up to
MANCHESTER, United Kingdom and DUBLIN, Ireland and MILAN, Italy, Feb. 01, 2024 (GLOBE NEWSWIRE) -- Brera Holdings PLC (“Brera Holdings”, “Brera” or the “Company”) (Nasdaq: BREA), which one year ago became the first Italian football team to IPO on Nasdaq, is now bringing multi-club ownership (“MCO”) to its shareholders and investors worldwide. Brera is the only publicly-listed MCO company in the world today, holding six assets in its professional sports team portfolio.
Brera endeavors to strategically build shareholder value through the continuous pursuit and acquisition of sports clubs. This expansion effort aims to substantially strengthen the Company’s capacity for player development and transfer across its broadening global professional sports team network, and Brera is looking forward to a prosperous and impactful year in 2024.
“I would like to congratulate Sir Jim Ratcliffe on his proposed Manchester United investment and believe that when a world class operator takes a stake in one of football’s most storied franchises, it’s the type of move that should positively reverberate throughout the industry,” stated Pierre Galoppi, Chief Executive Officer of Brera Holdings. “We have long seen the value of owning international football franchises and moved forward with our IPO to help execute our acquisition and investment strategy to realize vertical and horizontal opportunities in our space.”
According to SEC filings and Manchester United, PLC (NYSE: MANU) announcements, Sir Jim Ratcliffe, CEO of INEOS, will pay
Brera recently announced the launch of a proactive search for an Italian Serie B football club target designed to bring multi-club ownership of the highest tiers of professional sports ownership to mass investors through the Company's Nasdaq-listed shares.
ABOUT BRERA HOLDINGS PLC
Brera Holdings PLC (Nasdaq: BREA) is focused on expanding its social impact football (American soccer) business by developing a global portfolio of emerging football and other sports clubs with increased opportunities to earn tournament prizes, gain sponsorships, and provide other professional football- and sports-related consulting services.
The Company seeks to build on the legacy and brand of Brera FC, the first football club that was acquired by the Company in 2022. Brera FC, known as "The Third Team of Milan," is an amateur football association which has been building an alternative football legacy since its founding in 2000. The Company owns the trademarked FENIX Trophy Tournament, a non-professional pan-European football competition recognized by UEFA, inaugurated in September 2021 and organized by Brera FC. "FENIX" is an acronym for "Friendly European Non-professional Innovative Xenial." BBC Sport has called the FENIX Trophy "the Champions League for amateurs," and Brera FC hosted the 2023 finals at Milan's legendary San Siro Stadium. In October 2022, the Internet Marketing Association at its IMPACT 22 Conference named Brera FC as its award recipient for "Social Impact Through Soccer," recognizing the Company's focus at an international level with this distinction.
In March 2023, the Company expanded to Africa with the establishment of Brera Tchumene FC, a team admitted to the Second Division League in Mozambique, a country of nearly 32 million people. In April 2023, the Company acquired
In June 2023, Brera acquired a strategic stake in Manchester United PLC. In July 2023, the Company completed the acquisition of a majority ownership in the Italian Serie A1 women's professional volleyball team UYBA Volley S.s.d.a.r.l. In September 2023, the Company assumed control of Bayanzurkh Sporting Ilch FC, a team in the Mongolian National Premier League, which will become Brera Ilch FC when the football season resumes in March 2024. In January 2024, the Company announced the launch of a proactive search for an Italian Serie B football club target designed to bring multi-club ownership of the highest tiers of professional sports ownership to mass investors through the Company's Nasdaq-listed shares. The Company is focused on bottom-up value creation from undervalued sports clubs and talent, innovation-powered business growth, and socially-impactful outcomes. See www.breraholdings.com
Cautionary Note Regarding Forward-Looking Statements
This press release contains forward-looking statements that are subject to various risks and uncertainties. Such statements include statements regarding the Company's ability to grow its business and other statements that are not historical facts, including statements which may be accompanied by the words "intends," "may," "will," "plans," "expects," "anticipates," "projects," "predicts," "estimates," "aims," "believes," "hopes," "potential" or similar words. Actual results could differ materially from those described in these forward-looking statements due to a number of factors, including without limitation, the Company's ability to continue as a going concern, the popularity and/or competitive success of the Company's acquired football and other sports teams, the Company's ability to attract players and staff for acquired clubs, unsuccessful acquisitions or other strategic transactions, the possibility of a decline in the popularity of football or other sports, the Company's ability to expand its fanbase, sponsors and commercial partners, general economic conditions, and other risk factors detailed in the Company's filings with the SEC. The forward-looking statements contained in this press release are made as of the date of this press release, and the Company does not undertake any responsibility to update such forward-looking statements except in accordance with applicable law.
CONTACT INFORMATION:
FOR MEDIA AND INVESTOR RELATIONS
Pierre Galoppi, Chief Executive Officer
Brera Holdings PLC
pierre@breraholdings.com
FAQ
What is the ticker symbol for Brera Holdings PLC?
What is the value of Sir Jim Ratcliffe's proposed 25% stake acquisition in Manchester United?
Who will fully fund Sir Jim Ratcliffe's all-cash MANU tender offer?
How many assets does Brera Holdings PLC hold in its professional sports team portfolio?
What did CEO Pierre Galoppi express about Sir Jim Ratcliffe's proposed Manchester United investment?
