A-Leagues backer may sell off stake in 2029

The Australian A-Leagues "could be forced to buy out its largest shareholder" by 2029, a move that would "require the cash-strapped sport to find hundreds of millions of dollars or a new investor to stay afloat." In 2021, U.S. private equity firm Silver Lake Partners bought a 33% stake for $88.4M (all figures U.S.) when the professional game was "in financial trouble" during the pandemic. Silver Lake was able to get some "generous terms" as part of that deal, including "significant control over the future of professional soccer and the right to sell its A-Leagues stake back to APL at market value from 2029." Even a "modest increase" in value of Silver Lake’s stake "would require the APL to find hundreds of millions of dollars" to buy it out. The terms of its investment also give Silver Lake "preferential rights over A-Leagues clubs if the APL were to be liquidated" (SYDNEY MORNING HERALD, 10/20).