By Mauricio Alencar
Paris Saint-Germain have announced the sale of a minority equity stake to American fund Arctos Partners. The deal adds to a series of US private equity investments in European football over the last few years.
Qatar Sports Investment (QSI), who own the French league leaders, said that funding from the deal will go towards developing the club’s stadium and training ground.
They also say that investment will drive the club’s growth in the US and around the world.
PSG and Arctos did not publicly declare the terms of the deal. City A.M. reported in November this year that the agreement with Arctos would value the club at over €4bn.
Arctos Partners’ portfolio of investments in the sports industry includes a stake in Fenway Sports Group, who own Liverpool. They recently announced an investment in Aston Martin’s Formula One team, which valued the constructor at around £1bn.
Arctos also hold stakes in sports teams ranging from the NBA’s Golden State Warriors to the MLB’s Los Angeles Dodgers, which is part-owned by Chelsea’s Todd Boehly.
The deal means that QSI will no longer hold full shares in the club. The state-backed fund became the club’s sole owner in 2012 in a deal worth a total of $131m.
Though the Qatari ownership’s lavish spending on the world’s best players brought PSG international acclaim, the club have failed to win the Champions League.
Following the departures of Neymar and Lionel Messi in the summer, PSG are facing an uncertain future with French star Kylian Mbappe’s contract set to run out at the end of the season.
PSG, who came fifth in the 2023 Deloitte Money League after posting revenues of €654m, have also drawn criticism from the likes of La Liga president Javier Tebas, who has previously accused the club of breaking financial rules.
Nasser Al Khelaifi, president of PSG and chairman of QSI, said he was “delighted to welcome Arctos”.
“As a Club and institution, we are entering the next exciting phase of PSG’s growth and development, both on and off the pitch – which is based on long-term ambitions and attaining excellence in everything we do,” he said.
“Arctos is a fantastic partner to help us achieve our goals, bringing strategic expertise, ideas and innovation to our business, while providing investment and new relationships to support our footballing and sporting goals.”
Doc O’Connor, who is a managing partner of Arctos Partners, said he was looking forward to working with Nasser Al-Khelaifi.
“The first time we visited the Club, we felt the magic of PSG and its deep connection to the city of Paris. Our investment in the Club fully aligns with our strategy of partnering with best-in-class teams across North America and Europe.”
