The multi-club ownership (MCO) model in soccer has gained significant traction in recent years, showcasing its potential to enhance both on-the-pitch performance and off-the-pitch operations. Private equity funds are increasingly entering the soccer landscape, indicating a potential rise in the prevalence of the MCO model.
George Syrianos, CEO of Fenida, a specialized soccer strategy and analytics consultancy, highlights the advantages of MCOs. Owners can diversify investments across various markets, leveraging synergies in player recruitment, sponsorships, and branding opportunities. Syrianos emphasizes the holistic approach to player recruitment within MCOs, creating value throughout the process.
While Red Bull stands out for its identity-driven approach to MCOs, most multi-club ownership structures consist of well-established clubs with distinct cultures and traditions. Balancing competitive interests, history, and traditions poses a significant challenge for MCOs.
Effective communication and maintaining ambition across all clubs within the group are crucial, ensuring continuous improvement and delivering the best possible version of each club to fans. City Football Group exemplifies MCO success, with its clubs securing league titles and achieving competitive standings in various leagues.
Optimizing the interconnectedness between clubs is another hurdle for MCOs. Centralized decision-making and recruitment offer benefits, but clubs must retain agility to adapt to unique circumstances.
One of the key advantages of MCOs is the potential for substantial cost savings. By acquiring clubs in Portugal or Belgium at lower prices, MCOs can invest in promising talents from outside Europe, nurturing them within the group to reach top-tier standards.
Brighton and Hove Albion's partnership with Union Saint-Gilloise in Belgium has proven successful in developing talents like Kaoru Mitoma, showcasing the value of strategic collaborations within MCOs.
Looking ahead, Syrianos suggests that Africa and South America, particularly Brazil, present promising avenues for MCO expansion due to commercial opportunities and abundant soccer talent.
Ultimately, the success of an MCO hinges on its structure and ability to maximize benefits for its constituent clubs. With the right player valuation and development models, MCOs can unlock significant returns on investment, offering smart owners and investors ample opportunities for growth and success in the evolving soccer landscape.
