Rap mogul Jay-Z has been linked with a potential investment into Everton should John Textor succeed in his bid
John Textor’s bid to acquire Everton appears to be gathering pace. The American billionaire has added some financial backing to his plans for the club in recent days.
As first reported by Bloomberg, it has emerged that the Miami-based investment firm Aliya Capital Partners, which has some $1bn in assets under its management and joined Elon Musk’s 2022 purchase of Twitter, would be supporting the venture under Textor’s leadership, with a seat on the board anticipated.
With Textor currently in a period of exclusivity with Everton owner Farhad Moshiri but needing to divest his 45% shareholding in Crystal Palace before a full sale can progress, a statement from the company confirmed its intentions.
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An Aliya statement read: “We are delighted to support John Textor in his investment in Everton Football Club. Having collaborated with John over many years, and witnessed close hand his immensely successful venture with Botafogo, we view him not only as a partner but as a close friend.
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“Our involvement in Everton reflects our shared commitment to innovation and transformation in football. We eagerly anticipate Everton’s ascent under John’s visionary leadership.”
Following that development it was claimed via journalist Alan Nixon’s ‘Reluctant Nicko’ Patreon that Textor was ready to sound out US billionaire rap mogul Jay-Z for a potential investment in any deal.
Whether such a move comes to pass remains to be seen. But the 54-year-old New Yorker hung up his microphone and began spending more time in boardrooms over the past 15 years, amassing huge wealth through his Roc Nation company, and investments in tech start-ups such as streaming platform Tidal, as well as the cannabis industry in the US through the firm The Parent Company. He also held a stake in Uber.
Roc Nation Sports is an offshoot of the main company, and as a talent agency represents players such as Kevin De Bruyne and Vinicius Jnr, as well as Everton’s Idrissa Gueye.
As far back as 2005, Jay-Z, whose real name is Shawn Carter, had reportedly expressed an interest in taking a minority stake in Arsenal, the Premier League club he is said to follow.
But he has form for sporting investments. He was part owner of the Brooklyn Nets, being a key factor in the club relocated from New Jersey, where they had been known for decades as the New Jersey Nets, and taking on the Brooklyn moniker in 2012; a move that gave New York City two major NBA franchises.
As part of the ownership of the Nets, the hip-hop legend also held a stake in the home arena of the team, the Barclays Center.
The investment into sports previously, as well as arenas, may be a motivating factor behind Textor’s supposed plans to pitch an investment to Jay-Z, who has a diverse portfolio of and a strong track record of partnering with experienced investors and venture capitalists.
The stadium is the key to much of the value Textor sees in Everton.
New stadia is an expensive undertaking when acquiring North American sporting assets, and for many US owners the first thing that they look at when they take over a sporting asset is the venue in which the team plays, and whether it offers the best chance of maximising the revenue potential for the investment which, in turn, provides more funds organically for spending money on the product on the pitch.
The new 52,888-seater stadium on the banks of the River Mersey has been a financial millstone for Everton in recent years, but it will also be the thing that provides them the best chance of success in the future.
A world-class venue with the ability to generate revenue 365 days a year, with transport links and a location in a world-famous city that can attract major musical artists, means that there is the possibility to bring in money that has never previously been available to the club due to the very limited options they had with their beloved, but no longer fit for purpose in the modern day, Goodison Park home.
Valuations of major Premier League teams have risen considerably in recent years. For example, Liverpool owners Fenway Sports Group acquired the club in 2010 for £300m. But it is now worth some £5bn, with estimates for the potential value of the Reds, according to an investment proposal the ECHO saw last year, reached as high as £11bn.
However, much of that is based on broadcast revenues rising cycle after cycle, and there are some signs of that slowing down, at least domestically, with the value per game down for the new cycle due to a four-year contract at £6.7bn and an extra 70 games per season shown live.
The biggest teams are expected to continue to see some valuation growth, while Everton’s unique positioning as a globally recognised brand with a brand new stadium, means that they could buck a trend which US football investor Jordan Gardner told the ECHO recently might impact the rate of American investment in some Premier League clubs.
Said Gardner, a former owner of Danish side Helsingor and investor in clubs such as Swansea City and Dundalk: “I think we’re going to continue to see strong interest in the biggest teams from North American investors. I think they’ll always be interest in the likes of Liverpool and Manchester United.
“But what we might see is the effects of over-saturation of the market. Valuations are inflated and I don’t think you’re going to see much appetite from the US to take controlling stakes in clubs like, for example, Brentford and Wolves at valuations like £400m.
“I don’t see some kind of mass divestment from those from the US who hold controlling interests in clubs, I just think the inflated valuations will mean that those outside of the biggest clubs will struggle to attract the interest at those levels.
“The Premier League, in the eyes of North American investors, remains seen as undervalued.
“The issues around media rights in the French market, and even in the likes of Spain where valuations of some teams can be crazy, has scared away some US investment.
“But American investment is often opportunistic. If you look at someone like Bill Foley, he sensed opportunity at Bournemouth at a £130m valuation and thought that represented a good deal. That kind of opportunism will continue to exist, but only if the valuation is right.
“I think where things will be impacted is the interest in yo-yo clubs who go between the Premier League and Championship, and Championship clubs. There is much less upside when getting involved in those kinds of clubs.”
Famous faces from the US are starting to see the appeal of the English game, at all levels. Ryan Reynolds’ ownership of Wrexham, Tom Brady’s investment into Birmingham City, and ‘Creed’ actor Michael B. Jordan’s stake in Bournemouth have all raised the profile of the respective clubs. None of those investments have paid off as yet from a financial standpoint.
Someone like Jay-Z would take that level of interest to another level, and would have plenty of levers that could be pulled stateside at a time when the American market is very much on an upward trajectory when it comes to interest in ‘soccer’ and the Premier League, especially with the World Cup in North America less than two years away.
But investors want a return, and Everton, for all the upside that comes with the new stadium, have plenty of risk attached in terms of value given the financial issues of recent years, the heavy debt burden – some at high interest rates – and the concern over potential relegation. A direction of travel needs to be determined very soon in order to address some of those major investment risks and concerns.
