August 23 – Sport Republic, the London-based investment firm which majority owns Premier League Southampton, has agreed to buy a 70% shareholding in Turkish second tier club Göztepe S.K.
The deal is the second club acquisition by Sport Republic and the first sale of a Turkish club to foreign investors.
Rasmus Ankersen, CEO of Sport Republic, will be the new chair of Göztepe who play in TFF 1. Lig and after two matches of the new season lie joint third in the table with four points.
“Göztepe S.K. has a lot of potential for growth. It has a unique and very large following as well as a high-quality infrastructure, in particular a new and beautiful stadium located in Izmir. With almost five million inhabitants on its doorstep, we believe the club offers an opportunity to build a strong pipeline of homegrown talent,” said Ankersen.
In January Sport Republic acquiring the 80% shareholding held by Chinese investor Jisheng Gao in Southampton – Katharina Liebherr retained her 20% shareholding.
Sport Republic reportedly paid £100 million for the Saints shares in a deal that valued the club at around £250 million, taking into account the £90 million debt that was built up during Gao’s ownership.
No value was given for Göztepe S.K., though it would be nowhere near what was paid for Saints. As part of the Göztepe deal, shareholder Mehmet Sepil stayed on the board and with a number of existing shareholders together retain a 30% stake in the club.
“One of our key requirements was that Mehmet stayed as a shareholder as he knows the club and Turkish football in general inside out. We very much look forward to our partnership with Mehmet,” said Henrik Kraft, chairman of Sport Republic.
Turkish club football is in a financially desperate position with the Turkish SuperLig having just had to accept a broadcast deal painfully reduced – by up to 50% – from its previous deal with beIN Sport/Digiturk.
Turkey’s leading clubs have an accumulated debt of more than $750 million.
All of which make an investment in a second tier club interesting and seemingly loaded with risk.
“Being the first foreign investors in Turkish football comes with extra responsibilities and attention. We know it will not be without challenges, but we are committed to our long-term vision of fulfilling the potential of Göztepe. The passion for football in Turkey is truly special and we hope that our methodology and ideas can help develop Göztepe further,” said Ankersen.
desperate need of a strong broadcast deal. The top four clubs have all restructured debt with banks while the combined debt total of the clubs is more than $750 million.
Where Sport Republic will be looking for financial wins is within the development and sale of players.
“With Sport Republic’s experience and global presence, Göztepe will be more than a showcase team competing at the highest level. It will be a team that develops young talent, competes with home grown talent playing side by side with international players, and becomes a conduit for Turkish players for their international careers,” said Sepil.
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