Paul Davis: Apollo and the Liverpool Club embody the global boom in the sports industry

Liverpool Club broke the British record twice this summer in buying players, after spending more than 100 million pounds ($ 134 million) on both the two contracts with German Florian distinct and Swedish Alexander Isaac. These transactions contributed to increasing the spending of English clubs to more than 3 billion pounds, an unprecedented level during the summer transfer window revealed on Monday. These enormous figures show a global boom in the sports industry, with the increasing demand for private capital and sovereign and wealthy funds to pump large investments in it. For example, Apollo Global Management aims to launch an investment fund of $ 5 billion. Sports financing has always been an interesting sector, but it remains narrow and relatively mysterious compared to bank loans and broader private capital. Also read: The English Premier League spends 4 billion dollars in a standard transition season, and sports become an independent sector, although the Fund that Apollo intends to launch is limited in size compared to total Eastern assets of $ 840 billion, but this is a clear indication that this specialized sector is in the transformation. This enormous financial flow reflects the reliability and width of the income base for major clubs and teams, and also reflects the motives of the face and improving the status associated with possession of well -known clubs. However, these investments remain loaded with risks. Fortunately, the sport still poses some risk, even at the highest levels. Otherwise it would have lost its pleasure and attractiveness, and it became a monotonous product that had no spirit. The Premier League clubs use ‘innovative’ ways to continue major spending on special investments and sovereign funds that pump private investment companies more money into this sector, in addition to sovereign funds in countries such as Saudi Arabia, which want to diversify their investment portfolios and at the same time improve their international reputation. Read more: Gulf investments in football are picking the most important continental championships for clubs, and the wealthy people are increasingly interested in investing in sports, and it is no longer limited to the traditional desire to show the possession of a prominent club, but rather than reflecting the more investment motifs and widespread distribution. However, some private capital sector billionaires also do this to this traditional approach to boasting. A prominent examples of sports investment. For example, Josh Harris, the founding partner of Apollo, owns the Washington Cumaners team in the American Football League, while Bennett Rosena, the founding partner of the special credit giant “Ares Management”, is one of the most prominent owners of Los Angeles FC in the American Football League. This team recently broke the record for the most expensive purchase of players in the United States, when it signed South Korean Sun Hyung-men of the English club “Tottenham Hotspur”. Sports and Media doses, “Eris”, based in Los Angeles, one of the first specialized boxes in sports and media in 2022 at a value of $ 3.7 billion, is currently studying the launch of a second fund. Meanwhile, CVC Capital Partners, a special investment group, wants to refinance its portfolio of sports assets, which includes interests in the “Six Nations” championship of Rajabi and Indian Cricket Premier League, which could be more than $ 12 billion. More leagues and sports clubs around the world have used all the media platforms and commercial sources of income to maximize their income. Real Madrid has more than 50 listed companies that achieved extraordinary numbers, as Real Madrid became two seasons before the first European club with its annual revenue of more than one billion euros ($ 1.2 billion), according to the estimates of the company “Deloitte”, which has surpassed nearly $ 50 in the “Stoxx Euupex”. But as far as the size is concerned, the Premier League performs with a major difference from football in the rest of the European countries, as the standard spending on the transfers this summer exceeded the total of the largest four other leagues in Europe, and it is due to other reasons, that the total income of English clubs to the weakness of the next country is in the rival of income, which was Germany in the latest investigation. Also read: The President of the Premier League: The financial issues of the “Manchester City” are derived from the stadiums, and it is estimated that the largest 20 English clubs this past season revenue of 6.6 billion pound broadcasting rights, commercial income and correspond to revenue, according to “Deloitte”. It is expected to rise to 6.9 billion pounds this season, with the support of international media broadcast transactions in Asia, the Middle East and North Africa. From the point of view of private capital, the achievement of greater and more reliable income increases the attractiveness of lending, especially if the debt can be linked to origin. Clubs are increasingly using revenue to provide financing to build new stadiums or old redevelopment. The Everton Football Club has become the latest English team moving to a much larger stadium, which will contribute to its high income from tickets, sales skiosks and other products. The rules of fair financial play increase the attraction of English clubs. Most of the English clubs achieve no profits. Nevertheless, the European rules aimed at promoting fair financial play ends the size of the losses that have incurred during a specific period, making them better investment opportunities for lenders, but this may not ensure equal opportunities between the richer clubs and others. Entity is the main focus of companies such as “Apollo” and “Ares”, although private capital boxes also acquire royal shares. However, the complexity of the financial rules in football has also begun to cause problems, especially for entities that are interested in different clubs; The English club “Crystal Palace” is excluded from the European Championship to participate in the lowest level in the current season because of the possession of one of its owners, US investor John Texturity, also an interest in a French club participating in the same tournament, which is in conflict with the rules. It is estimated that ‘Crystal Palace’ will have 20 million pounds of missing income, representing a large amount of club that earns about 200 million pounds annually. Some liverpool fans may be concerned about the risk of spending 125 million pounds to buy one goal scorer, as in Izak, as this is the total of what exceeds all league clubs- except for eight clubs this summer. But if the former “Newcastle” attacker manages to score many goals, and the team helps win the league again, the supporters will soon overcome this concern. Many football lovers are increasing from the enlarged nature that focuses excessively on money for sports, and the players feel tired due to the many matches set by many local and regional championships, even before the extensive version of the Club World Cup Championship was held in the United States this summer. Despite warning signs for years that the game is approaching the saturation point, the audience, viewers and income are still growing, and investments are still flowing at a significant rate. These sports have become a global media and have become an increasingly attractive field from the lenders’ perspective.