Qatar Sports Investments (QSI) has owned Paris Saint-Germain for over a decade since purchasing the club in 2012. However, on Thursday 7 December, the team confirmed that the investment group US-based Arctos Partners becomes a minority shareholder of Les Parisiens.
In this deal, Arctos acquired 12.5% of the club’s shares. QSI have been claiming for some time that they are looking to sell up to 15% of their shares, so what does this investment mean for the Ligue 1 side?
No change in control of the club
The first thing to note about the Arctos deal is that the investment team will not have any decision-making authority over matters related to on-field expertise. It will also not affect the club’s organizational structure.
PSG has won 9/11 championships since QSI took over, but this investment will focus more on areas other than sports, as they have not been able to achieve their dream of winning the Champions League.
Developing global brands
PSG has grown significantly since QSI acquired it. The team has become an international brand and is looking to expand further in the North American market with Arctos.
Thanks to its recent success with superstars such as Messi, Neymar and Mbappe, the club has attracted many followers in the US and beyond. Les Parisiens itself has also expanded outside of Europe with Academies around the world.
Arctos will now play a key role in “engaging new and existing fans” around the world as well as “collaborating to explore sports investment opportunities globally”.
Strategic real estate initiative
According to the club, “The investment from Arctos will go towards developing PSG’s operations and also support the club’s strategic real estate initiatives, including in relation to the stadium and its phases. future development of PSG’s world-leading training center at Poissy on the outskirts of Paris.”
This is an area that the club has been researching for some time and the Paris team has just opened a new 300 million euro training center in Poissy, west of Paris. However, what causes headaches for the owners is the team’s stadium. PSG has leased the Parc des Princes from the Paris City Council since 1987 and they want to own it outright to have more control over operations and carry out future upgrades. However, the City Council was hesitant to sell the yard and rejected several offers, citing historical and cultural reasons.
In its current state, the Parc des Princes is quite old and in need of renovation, having been open since 1897. Its capacity of 48,583 people was also considered insufficient for the club, when limiting its growth. growth in audience attendance as well as revenue.
PSG is currently considering two options to solve its problem. They could move to another stadium, such as Stade de France, or build a new stadium. Investment from the United States will play an important role in deciding the team’s future home stadium.
Opportunity to develop sports ecosystem
Arctos has invested in more than 30 different sports clubs worldwide. They include the NBA’s Golden State Warriors, MLB’s Chicago Cubs, Formula One’s Aston Martin and Fenway Sports Group, which owns Premier League club Liverpool and American baseball team Boston Red Sox.
Therefore, the influence and expertise of investors will be beneficial to PSG. Al-Khelaifi said, “Arctos is a great partner to help us achieve our goals, bringing strategic expertise, ideas and innovation to our business, and providing investment and new relationships to support the team’s football and sporting goals.” In addition, “Arctos will also provide strategic services, expertise and insights to help the club achieve its ambitions.”
Dang Nguyen | 11:16 December 29, 2023