A-Leagues sell stake to US equity firm in deal worth $130m
A-League Men’s and Women’s clubs are expected to receive a cash windfall after an American private equity firm bought a minority share in the body which oversees both competitions.
Technology investment specialists Silver Lake have struck the deal with the Australian Professional Leagues (APL), which is responsible for the operation and commercialisation of the country’s professional football competitions.
It’s understood the deal is for a 30% stake in the body and is worth approximately $130m. The investment will be used to build a digital media platform.
It is also expected some of the funds will be made available to clubs for marquee player investments.
Under the terms of the transaction, APL has been valued at approximately $425m.
“This valuation recognises the latent potential that has long existed in the professional game in Australia, and the ability of our board and executive team to realise that potential,” A-Leagues chair Paul Lederer said.
APL took over the running of the A-Leagues in an unbundling from Football Australia in December last year.
The 2021-22 season is the first campaign to be fully operated under the APL’s charge with a new broadcast partner in Viacom-CBS via Network 10 and the Paramount Plus streaming app.
Both leagues also have new naming rights sponsors and a new five-year collective bargaining agreement with Professional Footballers Australia was announced in September.
Silver Lake, which is based in California, has an estimated $US88bn ($A123.3bn) in assets under management and has invested in sports regularly over the past couple of years including a $US500m ($A700.4m) deal to buy a 10% stake in the City Football Group – the parent company of English Premier League champions Manchester City and A-League Mens champions Melbourne City.
A deal worth hundreds of millions of dollars between the firm and New Zealand Rugby to acquire a stake in the All Blacks brand rights was also revealed earlier this year but has met resistance across the Tasman.
Under the terms of the APL deal, Silver Lake managing director Stephen Evans will also become a part of the body’s board.