atans1

Time for our SWFs to buy into sports teams?

In Financial competency, GIC, S'pore Inc, Temasek on 10/01/2021 at 4:34 am

In the West, the latest investment fashion is to buy into sports teams. Private equity is rushing to buy into European football teams. Italian clubs have put up “For sale” signs.

“Sports assets have shown a low correlation relative to the broader market, with teams selling for record values through the 2008 financial crisis and Covid-19″, said Michael Kenworthy, head of sports investment banking at Goldman Sachs. He added that some valuations had outperformed other traditional investment benchmarks, such as the S&P 500.

“If you’re thinking about what’s the best way to construct a portfolio and you want to diversify, there could be, potentially, merit having sports assets in that portfolio,” he added.

Well the A-Rabs led the way. Many moons ago,

Sheikh Mansour bought Sitty for US$360m in 2008. Now a Chinese consortium led by China Media Capital is to buy a 13% stake in Manchester City* for US$400m. That puts City’s value at US$3bn.

Too bad for us HoHoHo doesn’t do footie

An almost 10X increase in valuation in about 8 yrs is not to be sneered at.

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