Middle East Spending Has Soccer Team Owners Wanting to Sell

Investments in European soccer by consortiums from the Middle East have forced owners of Manchester United and Liverpool to consider complete and partial sales, according to a Reuters report.

Middle Eastern investment groups have solidified their reach in soccer with high-priced deals, compelling two club owners to seek new investments to compete and drive profits — without having what seems to be unlimited access to funding from the oil industry.

• In 2011, Qatar Sports Investments acquired a 70% stake in Paris Saint-Germain for roughly $67.9 million. 
• As of May 2022, the Ligue 1 club was valued at $3.2 billion, the seventh-most-valuable soccer team, per Forbes. 
• In 2021, a consortium led by the Public Investment Fund — Saudi Arabia’s sovereign wealth fund — purchased Newcastle United for $409 million.
• As of Jan. 23, Newcastle — currently ranked third in the Premier League standings — is valued at $440 million, per Sportico. 

The soaring valuations have caught the attention of Liverpool owner Fenway Sports Group and Manchester United owners, the Glazer family. In addition, the $5.2 billion sale of Chelsea in May 2022 to a consortium of investors led by Los Angeles Dodgers, Lakers, and Sparks co-owner Todd Boehly solidified the potential returns of a European soccer club.

Lost Earnings 

The failure of the European Super League — and its accompanying revenue streams — has also forced soccer team owners to consider new investors. In April 2021, a group of major European clubs announced plans to create the Super League, which was met with public outcry.

The league initially offered $3.4 billion in entry bonuses and a winner’s prize of $392 million.