• American firm, 777 Partners LLC, has commenced negotiations with Newcastle United FC’s owners for a potential investment.
  • The group has talked to at least five parties, including PCP Capital Partners, which invested in Newcastle United FC.
  • However, it’s still uncertain if they will pursue raising debt or equity.

777 Partners LLC has said that it is considering raising new capital to back its portfolio of football clubs and has held talks with owners of Newcastle United FC about making a potential investment. 

Bloomberg reported that the US investment group has had exploratory discussions with at least five parties about raising debt and equity, according to people with knowledge of the matter.  

  • “These include PCP Capital Partners, the advisory firm of British businesswoman Amanda Staveley that is also an investor in English Premier League club Newcastle United,” the sources said.

More details: It should be noted that deliberations are in the early stages and there’s no certainty they’ll lead to any debt or equity being raised, the people said. Representatives for 777, PCP and PIF declined to comment. 

Any investment in 777 may include money from the sovereign wealth fund, one of the people said, who asked not to be identified discussing confidential information.  

An investment by PIF would expose the wealth fund to the increasingly popular world of multi-club ownership in football. 

Investment exploits: Miami-based 777 is led by managing partners Steven Pasko and Josh Wander. Since striking a deal for Italy’s Genoa Cricket and Football Club in 2021, it’s gone on to invest in Paris-based Red Star FC, Belgium’s Standard Liège, Vasco da Gama in Brazil, Spain’s Sevilla FC and Melbourne Victory FC in Australia.

More recently, it’s taken a majority stake in German Bundesliga team Hertha BSC and has been weighing an investment in Premier League club Everton FC. 

Expected benefits: Proponents of this approach to ownership often point to the long-term benefits of cost synergies, the sharing of talented players and the potential to strike more lucrative sponsorship deals. Fan groups and other critics, meanwhile, have expressed concerns that it stifles competition and creates feeder teams with no real prospect of success.  

Other multi-club owners include Paul Conway’s Pacific Media Group, John Textor’s Eagle Football Holdings LLC and Abu Dhabi’s City Football Group Limited, the owner of Premier League champion Manchester City FC.  

777 is aiming to turn a profit by the 2023/24 season on revenue of €350 million ($373 million) across its group, one of the people said.