US sports team would be source of ‘guaranteed profit’ which could be reinvested into Everton
Williams has described the US sports model as one which renders their franchises “guaranteed profit generators”, whereas the same cannot be said of the European sports model.
Williams also noted how The Friedkin Group hinted at investing further capital into Everton in the coming years, as per a recent letter to shareholders.
Therefore, investing in a US sports team – and the “guaranteed profit” it brings – could create funds to be reinvested into Everton, Roma and Cannes.
“This new company, Pursuit Sports, has been set up as a holding company for The Friedkin Group’s sports assets,” Williams said.
“They own AS Roma and AS Cannes already, as well as Everton. It looks as though Dan Friedkin now wants to add a major US sports team to that portfolio.
“It was reported a few months ago that The Friedkin Group was looking at buying the Boston Celtics. They have since sold for around £4.5bn, which was a world record until recently. That gives you a sense of the scale of the Friedkins’ ambition in sport.
“The business case here is pretty clear. Unlike Everton, who for the foreseeable future are going to be a money pit for the American owners, US sports franchises are guaranteed profit generators.
“There are systems and rules in place that ensure that for every dollar you spend, you make more back. Acquire an NBA or NFL team and that gives you the cash to reinvest in Everton or Roma, who are a long way from being consistently profitable.
“We know they are planning to inject more cash into the club – they strongly hinted that was the plan in a letter to shareholders this week. Issuing shares might be the mechanism they use, but a US sports team could theoretically be the source of the funds themselves.”
Everton could become The Friedkin Group’s Manchester City
Williams stressed that, according to the “party line”, The Friedkin Group are not planning to create a hierarchical multi-club model similar to City Football Group or Red Bull.
However, there is scope for collaboration, along with economies of scale with regards to pooling certain costs and resources, according to Williams.
“Alongside the teams they already own, The Friedkin Group are making investments in technology and other sports-adjacent businesses,” Williams continued.
“There might be a commercial element to this too. They’ve hired David Beeston, whose previous role at FSG was to help engineer sponsorship opportunities across the portfolio. I suspect we may well see a similar centralised approach to commercial income at Pursuit Sports.
“The Friedkins have briefed that this isn’t a multi-club model in the mould of City Football Group or Red Bull.
“Yes, there will be opportunities for collaboration and there are economies of scale in terms of being able to pool certain costs and resources, but it’s not going to be a hierarchical system with one team sitting at the top.
“Or at least, that’s the party line.”
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