The Athletic FC Podcast: How Multi-Club Ownership is Reshaping Football
Release Date: March 24, 2025
Podcast Information:
- Title: The Athletic FC Podcast
- Host/Author: The Athletic
- Description: The Athletic's flagship football podcast, hosted by Ayo Akinwolere and featuring experts like David Ornstein, Phil Hay, Adam Crafton, and Matt Slater, delves into the biggest stories in football, providing insider perspectives from top reporters. The podcast aims to cut through the noise to reveal what’s truly happening in the world of football and why it matters.
Introduction to Multi-Club Ownership (MCO)
Host I.O Akinwolere kicks off the episode by highlighting the increasing trend of Premier League clubs becoming part of multi-club ownership portfolios. He poses critical questions about the motivations behind this movement, its operational mechanics, and its impact on both financial aspects and on-field success.
Notable Quote:
"Are they purely about making money or do they help guarantee success on the pitch?"
— I.O Akinwolere [02:00]
Guest Matt Slater begins by defining Multi-Club Ownership (MCO), emphasizing that it involves a single entity, whether an individual or an investment group, holding stakes in multiple sports organizations across various leagues and countries. He clarifies that MCOs aren't limited to football but can span multiple sports, allowing for a diversified investment portfolio.
Notable Quote:
"We’re going to define what a multi-club group is, and explore whether they’re operating within one sport or across multiple sports."
— Matt Slater [02:30]
Reasons Behind Multi-Club Ownership
Matt Slater outlines several motivations for entities to engage in MCO:
- Cost Efficiency: Consolidating back-office operations to reduce expenses.
- Player Development and Trading: Creating a network for talent cultivation and transfer between clubs.
- Strategic Market Presence: Expanding influence into key markets to enhance global reach and brand visibility.
- Supporting the Flagship Club: Developing feeder clubs to bolster the performance and sustainability of the primary team.
Slater notes that while the concept has gained popularity, it remains an evolving idea with no definitive models perfected yet.
Notable Quote:
"It's about projecting something to the world and having farm systems that serve the mothership."
— Matt Slater [03:00]
Potential Pitfalls and Challenges of MCO
The discussion shifts to the inherent challenges associated with MCOs. Slater elaborates on several potential issues:
- Operational Complexity: Managing multiple clubs across different regions and cultures increases operational burdens.
- Conflicts of Interest: UEFA and FIFA are grappling with regulations to prevent competitive integrity issues when MCO-owned clubs encounter each other in European competitions.
- Fan Backlash: Local fanbases may resist MCO influence, feeling their clubs are being used as feeder teams rather than being valued independently.
- Regulatory Uncertainty: Governing bodies are continuously updating rules to address the evolving nature of MCOs, complicating ownership structures.
Slater references Red Bull's restructuring of Leipzig and Salzburg as a case study of navigating UEFA’s regulations by enforcing strict operational separations to maintain competitive fairness.
Notable Quote:
"Regulatory uncertainty is growing, and governing bodies are constantly updating rules to address the complexities of MCOs."
— Matt Slater [16:00]
Who is Doing MCO Well: Case Studies
City Football Group (CFG) and Red Bull emerge as primary examples of successful MCOs.
City Football Group (CFG): Slater praises CFG for its comprehensive and strategic approach to MCO. CFG operates multiple clubs with a clear hierarchy and a strong central management team that aligns each club with the group's global strategy. Their extensive recruitment network and brand expansion efforts resemble a corporate entity like Disney, aiming to globalize the Manchester City brand effectively.
Notable Quote:
"City Football Group pushes the envelope with a clear holding company strategy, empowering management teams to align with a global vision."
— Matt Slater [22:00]
Red Bull: Red Bull’s MCO strategy is driven by branding their energy drink through sporting success. Their clubs across Germany, Austria, and other countries play with a high-energy style that mirrors the brand’s ethos. Slater highlights Red Bull’s success in creating a cohesive sporting identity that enhances both the brand and the performance of their teams.
Notable Quote:
"Red Bull's model is about aligning sporting success with brand identity, creating a unified and high-energy image across all their clubs."
— Matt Slater [39:30]
Future Trends in Multi-Club Ownership
The conversation explores emerging trends and future directions for MCOs:
- Geographical Expansion: Investors are looking into diverse markets such as Brazil, Portugal, Africa, and Eastern Europe to tap into rich talent pools and develop local markets.
- Commercial Ventures: Beyond football, MCOs are expanding into different sports, leveraging their expertise in business operations to manage various sports franchises effectively.
- Innovative Talent Development: MCOs are focusing on creating extensive talent ecosystems, using their multiple clubs to scout, develop, and transfer players seamlessly across their network.
- Operational Efficiency: Implementing proven North American business models to optimize the management and operational aspects of sports clubs globally.
Slater anticipates that as MCOs evolve, they will adopt more sophisticated strategies to maximize both sporting success and commercial profitability.
Notable Quote:
"Owners are likely to leverage their portfolios to explore innovative talent development and operational strategies across various regions and sports."
— Matt Slater [27:15]
Operational Success and Case Studies
Slater introduces additional case studies to illustrate operational success within MCOs:
Black Knight: Owned by Bill Foley, Black Knight has shown significant success with clubs like Bournemouth in the Premier League and during their expansion into the MLS with teams like LAFC. Their approach emphasizes utilizing successful strategies from one club to enhance others within their portfolio.
Notable Quote:
"Black Knight is strategically funneling success from Bournemouth to their other franchises, creating a cascade of operational excellence."
— Matt Slater [49:20]
Arcto Sports Partners: Arcto Sports Partners excels by taking minority stakes and providing consultancy based on data-driven insights. Their expertise in operational efficiency helps multiple clubs thrive without directly intervening in their sporting operations.
Notable Quote:
"Arcto brings a wealth of expertise and a robust network, enabling clubs to solve operational challenges effectively without overstepping."
— Matt Slater [30:00]
Ethical Considerations in Multi-Club Ownership
The episode delves into the ethical dimensions of MCOs, questioning whether it’s possible to balance profit motives with the welfare of fans and local communities.
Discussion Points:
- Ethical Capitalism: Host I.O Akinwolere and Matt Slater debate whether MCOs can operate ethically by treating fans as customers and ensuring sustainable business practices.
- Community Engagement: The importance of maintaining a positive relationship with local fanbases and communities to foster loyalty and mutual support.
- Regulatory Compliance: Adhering to evolving regulations to maintain competitive integrity and prevent monopolistic behaviors.
Notable Quote:
"A good owner should treat fans as customers, balancing ethical practices with business profitability to ensure a virtuous circle."
— Matt Slater [34:00]
Conclusion and Future Episodes
As the conversation wraps up, Matt Slater hints at upcoming episodes focusing on operational strategies within MCOs and featuring interviews with key figures like Tim Basbetchenko of Black Knight and Larry Berg of LAFC. The hosts encourage listeners to submit their questions on MCOs for future discussions, promising deeper dives into the complexities and success stories of multi-club ownership.
Notable Quote:
"Tomorrow we'll be talking about what it takes to run an MCO and hear directly from those who are managing these complex ownership structures."
— I.O Akinwolere [50:00]
Key Takeaways:
- Multi-Club Ownership (MCO) is an emerging trend in football where single entities own stakes in multiple clubs across different leagues and countries.
- Motivations for MCOs include cost efficiency, talent development, strategic market presence, and supporting flagship clubs.
- Challenges encompass operational complexity, potential conflicts of interest, fan backlash, and regulatory uncertainties.
- Success Stories like City Football Group and Red Bull demonstrate effective MCO strategies through cohesive management and brand alignment.
- Future Trends indicate a move towards geographical and commercial diversification, innovative talent ecosystems, and enhanced operational efficiencies.
- Ethical Considerations highlight the need for MCOs to balance profit motives with proper community engagement and regulatory compliance.
This episode provides an insightful exploration into how multi-club ownership is transforming the football landscape, offering listeners a comprehensive understanding of its dynamics, benefits, and challenges.