Multi-Club Ownership in Football: A Growing Trend
Multi-club ownership (MCO) is becoming increasingly prevalent in professional football, with notable investment from companies looking to build networks of clubs across different leagues and countries. This model allows for player and staff movement between teams within the same ownership group, offering potential benefits in player advancement and operational efficiency.
Red Bull is a prominent example,holding majority ownership in clubs in Germany (RB Leipzig),Austria (Red Bull Salzburg),the United States (new York Red Bulls),and Brazil (Red Bull Bragantino). Thay also have minority stakes in other clubs, including Leeds United. This structure facilitates the transfer of players and managers – a pathway similar to internal promotion within a multinational corporation. Jesse Marsch’s career trajectory, moving from New York Red Bulls to Salzburg and then Leipzig, exemplifies this, though typically such moves occur during the off-season.
Other groups are establishing MCOs to share best practices and foster growth. Tony Bloom, as an example, has investments in Brighton & Hove albion (England), Union Saint-Gilloise (Belgium), Hearts (Scotland), and Melbourne Victory (Australia).
Sir Jim Ratcliffe’s Ineos owns 100% of OGC Nice (france) and FC Lausanne-Sport (Switzerland), and holds a 27.7% stake in Manchester United (as of December 2023). Despite not having majority control at Old Trafford,Ratcliffe’s influence over football operations is substantial enough to meet UEFA’s criteria for an MCO. (note: Previous reports indicated a 28.94% stake, but this has been updated to reflect the most recent ownership percentage.)
A particularly noteworthy MCO is that of Chelsea and RC Strasbourg Alsace. Football finance expert Kieran Maguire describes this partnership as “unique,” differing from typical football-focused MCOs. BlueCo, the ownership group behind Chelsea, appears to be employing a hedge-fund strategy, acquiring undervalued assets (like Strasbourg) with the intention of increasing their value and selling them for a profit.
Maguire suggests Strasbourg is being used as a development hub for young talent that Chelsea may later acquire. Chelsea currently fields the fourth-youngest squad in Europe’s top five leagues, while strasbourg boasts the youngest. BlueCo’s strategy involves securing young players on long-term contracts, allowing their value to appreciate as they develop and perform.
Sources:
* https://www.bbc.com/sport/football/67669989
* https://www.manchestereveningnews.co.uk/sport/football/man-united/sir-jim-ratcliffe-man-utd-28339911
* https://www.chelseafc.com/en/news/2023/12/blueco-completes-acquisition-of-rc-strasbourg-alsace