Goldman Sachs will soon offer their clients the ability to buy into pro teams, the latest development in a growing industry push to find new ways to keep up with rising franchise values.

A newly created division of the financial services giant called Sports Franchise in Investment Banking, co-led by Goldman Sachs executives Greg Carey and Dave Dase, will provide extremely wealthy clients with the opportunity to invest not only in teams but also other entities in sports and entertainment. The effort also combines Goldman Sachs’ prior activities in sports mergers and acquisitions and in sports financing.

The division will focus on the “global sports ecosystem across all major sports, including federations, leagues, franchises, and clubs, as well as sports media, entertainment, and tech businesses,” according to an internal memo seen by the U.K.’s Financial News. 

It is unclear which teams or other assets will be immediately available to firm clients. Goldman Sachs has been active in numerous major transactions, including sales of the Premier League’s Chelsea, Formula 1, and a minority stake in the NFL’s Tennessee Titans. 

The effort, however, is designed to allow investors a clearer path to fast-growing interest in sports-related investments. 

A New Trend In Sports

Franchise values have escalated to the point where a variety of alternative measures for team ownership and investment are increasingly being considered. 

Most recently, the NFL is reviewing its traditional ownership rules, and several other pro leagues allowed the introduction of private equity and sovereign wealth funds into ownership. 

International ownership has also grown, as Saudi Arabia’s PIF has invested heavily in sports in the U.S. and elsewhere, and the Qatar Investment Authority became an investor in Monumental Sports, parent company of the Washington Capitals, Wizards, and Mystics, earlier this year.  

Soccer’s reverse British Invasion continues. 

The Florida-based 777 Partners have completed their anticipated deal to acquire the Premier League’s Everton, extending a growing American presence in arguably the sport’s top league.

The pact will see 777 Partners acquire a controlling 94.1% stake in the club from Farhad Moshiri, who oversaw a highly difficult period for the club that included near-relegation, five straight years of financial losses, and ongoing delays and rising costs for a new stadium.

Everton is getting a critical lifeline following unsuccessful efforts to stabilize the club. The deal is now going before several entities, including the Premier League and Football Association, for approval in advance of intended closing later this year.

Multiple reports pegged the deal at about $685 million.

“Our primary objective is to work with fans and stakeholders to develop the sporting and commercial infrastructure for the men’s and women’s teams that will deliver results for future generations of Everton supporters,” said Josh Wander, 777 Partners founder and managing partner.

Local Unease

777 Partners — which is steadily amassing one of the world’s leading soccer portfolios — had previously considered an investment in Everton. But this deal and entry into the Premier League represents the largest and boldest step to date by the firm.

The deal will bring the number of American-owned Premier League clubs to 10 out of 20 — a group that also includes iconic clubs such as Arsenal, Chelsea, Liverpool, and Manchester United. Already a situation causing unease within English soccer, tension has only grown through ongoing struggles and fan protests at several of the U.S.-owned clubs.

“We recognize the news today raises many questions for Evertonians, and we have already asked for an urgent meeting with the club and 777 representatives to obtain some clarity on the plans for the development of the club,” said the Everton Fan Advisory Board.

Diamond Sports Group, the embattled and bankrupt parent of Bally Sports, has completed a multiyear rights agreement with the NHL’s Los Angeles Kings — one it intends to use as a template for its reorganization efforts.

The newly completed deal will keep the Kings on Bally Sports, and the network will show about 65 games this coming season, as well as pre- and post-game shows and original programming. 

The agreement also includes digital rights that will offer Kings games both on an authenticated basis to linear subscribers or direct-to-consumer through Bally Sports+.

Most importantly for DSG, the structure of the Kings deal will be a key pillar of the company’s reorganization strategy ahead of a Sept. 30 deadline to submit a formal plan. DSG will have to determine which of its 27 total NBA and NHL team media rights it will keep, a decision requiring meaningful progress on distribution renewal negotiations with Comcast, DirecTV, and Spectrum.

“We are encouraged by the progress we are making in our restructuring progress and are hopeful that this agreement can serve as a model for future discussions with team and league partners,” said David Preschlack, DSG CEO.

While other pro teams such as the Utah Jazz and former Bally Sports partner Phoenix Suns voluntarily opted for other paths in distributing their local games, the Kings still preferred a situation more closely resembling what they’ve been doing for nearly four decades.

“Because of the current, ever-changing dynamics surrounding the broadcasting landscape, our organization is thrilled to present a tremendous broadcast package in conjunction with national league broadcast partners,” the Kings said. “It is an unprecedented reach for us.”