Watch this SPACe - Stake New Zealand

Watch this SPACe

Kopites rejoice. In the coming months, the chance to own Liverpool FC may become very real. Although that chance is currently very low.

You may remember Billy Beane as Brad Pitt in the movie Moneyball. Beane just resigned from a 30-year stint at the Oakland A’s for a chance to chair RedBall Acquisition Co; a SPAC finalising a raise north of a billion dollars to make a play at a major sporting franchise.

Fenway Sports Group is the current target. Owners of Liverpool FC and the Boston Red Sox. Such a franchise would be worth around US$8b. RedBall raised US$575m in August. There’s obviously a mismatch between wants and means but the board is trying to raise another billion in an effort to bid for 25% of FSG.

On that note, how exactly do sports teams make money? Let’s take a look at Manchester United (MANU). A US$2.4b company, revenue comes from 4 main sources: sponsorships (40%), retail (20%), broadcasting (20%) and matchday revenue (20%).

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