Carlyle Backing Sounders Push to Buy OL Reign for $50M
Private equity giant Carlyle is backing part of the Seattle Sounders’ bid to buy NWSL club OL Reign, according to multiple people familiar with the talks.
The firm would be a non-control partner in the group, which is in advanced talks to buy the Reign for around $50 million, said the people, who were granted anonymity because the specifics are private. It’s unclear how big the equity stake would be.
More from Sportico.com
Representatives for the Sounders, Carlyle and the NWSL declined to comment. Representatives for the Reign and Raine Group, which is handling the sale, didn’t immediately respond to requests for comment.
NWSL valuations are soaring amid an influx of new owners. In the past few years there have roughly been a dozen changes of control or expansion teams. Two more—the Reign and Portland Thorns—are currently seeking buyers. Sportico previously reported that the Bhathal family, investors in the Sacramento Kings, were in exclusive talks to buy the Thorns.
The average NWSL franchise is worth $66 million, according to Sportico’s annual valuations, with a range from $180 million (Angel City) to $40 million (Chicago Red Stars). The Reign were valued at $49 million, 8th in the 12-team league.
Some of that new investment has come via private equity. Sixth Street is the majority and control owner of the new Bay Area expansion team, a deal structured with specific safeguards to protect the league from possible concerns that might arise from having a PE firm in control. Arctos Partners is a passive minority investor in both the Utah Royals and Thorns, and Monarch Collective is an LP in the new expansion team in Boston.
While most major U.S. leagues have codified rules around private equity investment, the NWSL is yet to do so. It’s possible that Carlyle could hold a majority of the Reign equity but not be the team’s control owner.
Carlyle has been looking to increase its presence in sports, according to multiple people familiar with the push; that includes early involvement in a possible bid for Manchester United. The firm’s interest includes debt financing (similar to many sports deals done by Ares), and equity deals, like this Sounders/Reign partnership. Since 2018, the group has deployed more than $3 billion into sports, media and entertainment. The group is in discussions to back Alex Rodriguez and Marc Lore’s takeover of the Minnesota Timberwolves, according to Axios.
The Reign are currently owned by John Textor’s Eagle Football, which bought the French soccer holding company OL Groupe last December. (OL Groupe, best known for the Lyon teams, purchased the Reign back in 2019 for around $3 million.) The team was put on the market earlier this year shortly after Michele Kang, owner of the NWSL’s Washington Spirit, bought the Lyon women’s team.
The Reign finished the year 9-8-5, and lost in the NWSL championship game. The team averaged 13,610 fans per game during the regular season, fourth highest in the league.
Best of Sportico.com
