UK Soccer Clubs Spend Record $2B

The market for soccer players among UK clubs has never been bigger.

In 2022, English teams spent more than $2 billion on player contracts for the first time, according to FIFA’s Global Transfer Report.

• The 100 most expensive transfers accounted for almost half of the almost $2.2 billion.
• The global transfer market hit $6.5 billion in fees, up from $4.9 billion in 2021. The top 10 transfers accounted for 12.5% of that sum.
• French teams were the biggest recipients of transfer fees, bringing in $740.3 million.

Men’s professional soccer saw 20,209 international transfers in the year, up 11.6% year-over-year and topping 2019 levels as well. Women’s team transfers grew 19.3% to 1,555, reaching a total spend of $3.3 million.

Hot Team Market

At least two Premier League clubs are expected to be sold soon Manchester United potentially changing hands in the coming weeks.

Liverpool is also on the block, stoking speculation that owner Fenway Sports Group could be looking to buy an NFL team such as the Washington Commanders or found an NBA team if the league expands.

Everton is looking for investors, but isn’t expected to sell a controlling stake.

The largest owner of local sports channels in the US is reportedly heading towards an $8.6 billion debt restructuring in bankruptcy court.

Sinclair Broadcast Group’s Diamond Sports Group, which includes Bally Sports Regional Networks and showcases MLB, NBA, and NHL games, has seen a decline in cable-TV subscribers.

• After launching a streaming service across all its markets in September, DSG reported a 10% decline in subscribers for 2022 in December.
• In August, Diamond hired investment banks LionTree and Moelis & Company, leading to speculation that Sinclair could face bankruptcy or sell its broadcast provider of local sports.

Bloomberg reported that Diamond is expected to skip $140 million in interest payments due mid-February, emerging from the restructuring process — in which lenders including Prudential Financial and Fidelity would reportedly become equity owners — in May or June.

The group is reportedly looking to sell DSG after the restructuring.

Bankruptcy Business

If Diamond were to file for bankruptcy, it could affect media rights revenue for the major leagues since it would reportedly have the option to end its contracts with teams. DSG reportedly owes teams around $2 billion this year, but only has around $585 million on hand.

“You’re looking at a potential rewrite of the entire regional sports business on the other side of this restructuring,” said Davis Hebert, a senior telecom analyst at CreditSights.

The San Diego Padres are being rewarded for their big spending.

The team is capping season-ticket sales for the upcoming season “due to unprecedented demand.”

The final day to purchase Padres season tickets is on Feb. 4, coinciding with the team’s fanfest.

• After that date, interested fans will be put on a waitlist — a first in the club’s 54-year existence.
• “It is important for us to cap our season-ticket memberships at this time to ensure that every Padres fan has an opportunity to attend a game at Petco Park during the 2023 season,” said Padres CEO Erik Greupner.
• Single-game tickets go on sale Feb. 7.

The Padres drew 3 million fans across 81 home games in 2022, fifth in Major League Baseball in both average and total attendance.

High-Flying Friars

The uptick in fan interest follows a playoff run and big offseason additions to an already star-studded roster.

San Diego signed shortstop Xander Bogaerts to an 11-year-old, $280 million contract, bringing its estimated 2023 payroll to $251 million, third-highest in MLB.

Bogaerts is one of six Padres on a contract with an average annual value of $20 million or more, along with Manny Machado ($32 million per year), Juan Soto ($23 million), Yu Darvish ($21.5 million), Fernando Tatis Jr. ($21.3 million), and Joe Musgrove ($20 million).