Why Goldman Sachs could soon be helping to sell your favourite sports team
Goldman Sachs is betting on the flurry of investment in sports teams continuing by creating a dedicated global sports franchise division.
The investment banking giant has previously worked on the sales of Chelsea, advising eventual buyers Todd Boehly and Clearlake Capital, and Formula 1 to Liberty Media.
Now it is stepping up its efforts to facilitate further deals via its new unit, to be called Sports Franchise in Investment Banking, according to reports.
The division will pitch opportunities to buy or invest in sports teams to super-rich clients, tapping into the expertise of Goldman’s wealth management department.
It will draw on the bank’s sports mergers and acquisitions and sports financing units and also offer investments in sport-adjacent media, entertainment and technology projects.
The division will be led by Goldman executives Greg Carey, who chairs its public sector and infrastructure group, and Dave Dase, who heads up regional investment banking activity, Financial News reported.
It comes as sports franchise values continue to soar both in the United States and in Europe.
The NFL’s Washington Commanders sold for $6bn this year, a new record for a sports team, while the Glazer family is seeking even more for Manchester United.
Chelsea fetched £2.5bn from Boehly’s consortium last year, a valuation which surprised industry observers and prompted both United and Liverpool to test the market.
Franchises in Major League Soccer are now being valued at more than $1bn, while Paris Saint-Germain are discussing a minority sale that values the club at over $4bn.
Middle Eastern investment, notably from Saudi Arabia and Qatar, has kept prices buoyant, while US investors have been queuing up to snap up European properties in the belief that they remain undervalued.