Silver Lake is now the second largest shareholder in Manchester City FC owner City Football Group.

The private equity firm increased its existing stake by purchasing a roughly 4.1% share from CMC Football Holdings. Filings show it was acquired between early 2020 and January 2022.

• Silver Lake, which bought its initial 10% stake for $500 million in 2019, now owns 14.54% of the company.
• CMC’s holding dropped to 8.24%.

City Football Group has full or partial stakes in 12 soccer clubs including New York City FC, Melbourne FC, and Manchester City — the sixth highest-valued soccer team in the world with a $4.25 billion valuation. Man City reported record revenue of $648.5 million for the 2020-21 season.

Silver Lake’s Stakes

Last month, Silver Lake purchased Diamond Baseball Holdings from Endeavor for $280 million. Formed last year, DBH includes 10 minor league baseball teams including affiliates of the St. Louis Cardinals, Chicago Cubs, and New York Yankees.

Last year, Silver Lake acquired a 33.3% stake in the Australian Professional Leagues for roughly $100 million, and as of this year, is set to acquire a stake in NZR CommercialCo, a division of New Zealand Rugby that houses all revenue-generating assets of the governing body.

A joint venture between the NFL and MLB players is bidding adieu to its original private equity partner and welcoming three more.

RedBird Capital Partners is selling its 40% stake in OneTeam, a business that handles the intellectual property rights of the MLBPA and NFLPA.

• HPS Investment Partners, Atlantic Park Strategic Capital Fund, and Morgan Stanley Tactical Value are buying RedBird’s stake.
• The deal reportedly values OneTeam at around $1.9 billion. 
• OneTeam was formed in 2019 by RedBird, the NFLPA, and MLBPA. Latham & Watkins advised the NFLPA on the original formation of the company and on the most recent sale.

RedBird exits with an estimated $600 million in profits – a return of more than 500%.

Growing Team

In addition to MLB and the NFL, OneTeam has expanded to represent the players’ associations of MLS, the WNBA, the NWSL, the U.S. Women’s National Team, U.S. Rugby, the League of Legends Championship Series, and college athletes. 

In all, it represents over 10,000 players.

The MLBPA added more than 5,000 players to its rolls with the addition of MLB’s minor league players this week.

“We have generated hundreds of millions of dollars for athletes across football, baseball, basketball, soccer, rugby, and more,” said Malaika Underwood, OneTeam interim CEO.

OneTeam’s EBITDA is reportedly around $200 million.

Phil Mickelson is reportedly giving serious consideration to removing himself from an antitrust lawsuit against the PGA Tour.

The six-time major champion and 10 other golfers alleged that the PGA Tour wrongly banned them for competing in LIV Golf events — alleging their suspensions are part of a “carefully orchestrated plan to defeat” LIV.

Backed by the Public Investment Fund — Saudi Arabia’s sovereign wealth fund — LIV has seen many of its players suspended from PGA Tour events. 

“Now that LIV is involved, it’s not necessary for me to be involved,” Mickelson said. 

• In August, LIV joined the lawsuit, according to an amended complaint obtained by Front Office Sports.
• LIV Golf stated that PGA Tour players are “independent contractors but are denied independence.” 
• A trial date has been scheduled for Jan. 8, 2024.

Mickelson wouldn’t be the only LIV player to distance themselves from the lawsuit. 

In August, three-time PGA Tour winner Pat Perez removed his name as one of the 11 plaintiffs. Perez told Sports Illustrated that he joined the case out of solidarity to LIV golfers but doesn’t “feel any need to go after the PGA Tour.”

Drawing Interest

LIV is generating “enormous” interest from potential U.S. broadcasters, according to its CEO Greg Norman. One source told FOS there may be at least six legitimate bidders for LIV’s U.S. media rights — and the leading contender is FOX.