U.S. Money Is Hungry For Euro Soccer

The wave of American ownership in European pro soccer could soon include Major League Soccer’s LAFC.

The club — whose ownership ranks include Golden State Warriors co-executive chair Peter Guber and actor Will Farrell — is reportedly in talks to acquire Switzerland’s Grasshopper Club Zurich, becoming the latest U.S. team to invest in soccer on the continent.

Founded in 1886, Grasshopper Club Zurich plays in the Swiss Super League, the top of that country’s soccer pyramid. Its Chinese ownership group is led by Jenny Wang, wife of billionaire Guo Guangchang, founder of Fosun International Ltd. 

A deal isn’t guaranteed, but Wang first placed the franchise up for sale in April. 

The defending MLS champion, LAFC remains one of MLS’ top performers, finishing third in the Western Conference on the field this season and ninth in attendance with an average of 20,204.

Growing List

If completed, the transaction would add to accelerating American ownership interest in top leagues such as the Premier League and Serie A, smaller ones such as the Belgian Pro League, and the lower reaches of French and Italian soccer — not to mention the high-profile acquisition of fourth-division Welsh club Wrexham A.F.C. by Hollywood stars Ryan Reynolds and Rob McElhenney. 

Most recently, Florida-based 777 Partners is seeking to acquire Everton in a deal that would see Americans own half of the Premier League’s clubs, including iconic franchises Arsenal, Chelsea, Liverpool, and Manchester United.

The Milwaukee Bucks are once again occupying some of the NBA spotlight, thanks to the blockbuster preseason trade for star guard Damian Lillard and a three-year contract extension for Giannis Antetokounmpo worth as much as $186 million.

Together, Lillard and Antetokounmpo are projected to be the first to break the $60 million barrier in annual salary. A key ingredient of the Bucks’ resurgence is the influence of the team’s new co-owners Jimmy and Dee Haslam. 

The Haslams bought into the Bucks earlier this year, taking on a stake in the Wes Edens-led club at a $3.5 billion valuation. That equity, previously held by Marc Lasry, marked a critical expansion of the Haslams’ sports empire, joining majority holdings in the NFL’s Cleveland Browns and MLS’ Columbus Crew.

“The desire to win is not just for us, although we’re incredibly competitive, but we also recognize how important it is for these communities to have a winning team,” Dee Haslam told the Milwaukee Journal Sentinel. “That gets us excited to be part of that story.”

Up-And-Down Results

After preventing the Crew from leaving for Texas nearly five years ago, the Haslams have presided over an MLS championship and opened the new Lower.com Field in 2021. The Crew have remained solid performers both on and off the field, particularly relative to their market size. 

The Browns, conversely, have been more of a struggle with just one playoff appearance and numerous football leadership changes during the brothers’ 11-year ownership tenure. But the Haslams intend to be active fixtures in the Bucks’ operations.

“We agreed with Wes early on that no matter who the governor was, that any major decision — coach, GM, key player, signing over X amount — we both had to agree, and it’s worked,” Jimmy Haslam said.

No longer the top-selling beer in the U.S., Anheuser-Busch InBev’s Bud Light is returning to UFC in a record-setting deal for the mixed-martial arts giant.

After losing the top market slot to Modelo earlier this year following a sponsorship with transgender social media influencer Dylan Mulvaney that sparked protests and boycotts, Bud Light has signed a six-year pact with UFC that industry sources and multiple reports described as the largest sponsorship agreement in the promotion’s history.

That status elevates the new deal beyond a 10-year, $175 million agreement UFC signed with Crypto.com in 2021. 

Bud Light replaces Modelo, owned in the U.S. by Constellation Brands, in the category for UFC, a placement it previously held with the property. In recent months, Bud Light has also leaned into its football assets as it looks to boost its brand.

“There are many reasons why I chose to go with Anheuser-Busch and Bud Light, most importantly because I feel we are very aligned when it comes to our core values and what the UFC brand stands for,” said UFC CEO Dana White.

The Bud Light deal is among the first major business deals for UFC following last month’s official formation of parent company TKO Group Holdings. UFC also recently finalized plans to stage its first event in Saudi Arabia.

German sportswear brand Puma may continue to struggle in the U.S., but it still enjoyed a solid quarter thanks to gains on its home continent and in China.

Puma reported operating profit of $252 million for the third quarter, down 8.5% but beating analyst expectations, on revenue of $2.45 billion, up 6% on a currency-adjusted basis. 

American sales during the quarter rose just 2.5% and are down by 1% for the year to date, as the brand has sought to focus more on higher-end products. But those figures were easily surpassed by a 9.9% bump in Europe, the Middle East, and Africa, plus another 4.6% boost in the Asia-Pacific region.

Perhaps most pleasing to investors was Puma’s reaffirmation of its full-year projections, including an operating profit of $625 million to $710 million. As a result, Puma stock rose nearly 8% in Tuesday trading in Frankfurt.

“While the market continues to experience significant macroeconomic headwinds and 2023 remains a transition year, we outgrew the market,” said Puma CEO Arne Freundt. 

American Comeback?

Puma is looking for resurgent American growth next year, in part due to new collaborations with celebrities including Rihanna and her partner, A$AP Rocky.

The company continues to operate in a vigorous battle for market share with other major shoe and apparel brands such as Adidas, Nike, Reebok, and Under Armour.