Owner open to investors, but no sale is imminent
Orlando City majority owner Flávio Augusto da Silva remains open to conversations with potential buyers but is not currently looking to walk away from the franchise, a source told the Orlando Sentinel.
The Sports Business Journal reported Thursday that Augusto da Silva was nearing the final stages of selling Orlando City to an unidentified buyer.
The report did not specify whether the sale would include other assets in Orlando City Sports Holdings, which includes NWSL side Orlando Pride, USL affiliate Orlando City B and Exploria Stadium. A transaction was also not guaranteed in the report, which stated negotiations could break down before a deal was reached.
A source told the Orlando Sentinel that Augusto da Silva is always open to talking about sales of shares or larger portions of the club. However, a change of majority ownership is not immediately imminent.
Augusto da Silva paid a $70 million expansion fee to bring Orlando City to MLS in 2015 and self-financed the construction of Exploria Stadium, which now has an estimated value of at least $180 million.
Rumors of the club’s sale have flared up throughout the past few years. Augusto da Silva sold an 8.63% share— valued at $490.5 million — to Albert Friedberg in 2018, which dropped his majority ownership to a 79% stake.
In an interview with Brazilian outlet Estadão last year, Augusto da Silva said he was open to a sale to pursue his goal of focusing on philanthropy when he turns 50 in 2022. During the interview, the owner said this transaction could take
many forms — a majority or minority sale, or an option that allowed him to stay on the board.
In past years, the owner has sold small stakes in the club to deliver an infusion to the Orlando City Soccer Holdings portfolio. The club most recently sold a small minority stake to Jed Kaplan — a part-owner of the Memphis Grizzlies and English second flight side Swansea City — in September.
The Sports Business Journal report suggested Augusto da Silva solely saw Orlando City as an investment that could one day be flipped for a profit. However, Augusta da Silva has spoken passionately about building every element of the Orlando City franchise, calling everything from the first match to the construction of the stadium to hosting the MLS All-Star Game a dream come true.
“This is one if the best
feelings an entrepreneur can have … to see what one day was a dream, now is a reality,” Augusto da Silva told the Orlando Sentinel in 2016 as he watched early stages of construction of Exploria Stadium. “Things are moving very fast right now. We can see the hope. There is a stadium over here; they are really building a stadium.
“We started building from the supporter area. That wall is the first thing that we started. This is our home, this is where we are going to have our games, this is the place we are going to receive our guests, our supporters, our family.”
A source reiterated Friday that Augusto da Silva remains passionate about the growth and development of Orlando City SC, and any suggestion he solely sees it as part of his investment portfolio is inaccurate.