The English Football League (EFL) has rejected a £375 million offer from an American investment firm for a 20 per cent stake in the Football League.
It is understood that the offer, from TPG Capital, was turned down by chairman Rick Parry on Friday in a deal similar to that between CVC Capital Partner and Premiership Rugby.
The investment firm have recently been making moves into the sporting sector, by being linked with an investment interest into the Italian Serie A, as well as working with IMC, a company that it backs, into purchasing a majority stake in Goal.com.
TPG Capital hoped to be able to install a management team that could look after the commercial and broadcasting rights of the leagues.
The Times claim “that the offer was not put to the 72 EFL clubs but discussed by the league’s commercial chiefs before being rejected. The EFL declined to comment."
The EFL has made no secret of the financial difficulty it finds itself in as the Covid-19 pandemic continues to leave questions marks over when there would be a return of spectators to football matches.
Robbie Cowling, owner of League Two side Colchester United, an EFL member, penned an open letter to the Prime Minister in September after the government scrapped plans to slowly introduce football fans back into stadiums from October.
“With this one decision you have not only threatened the livelihoods of the staff at Colchester United and the local businesses that rely on our club, and not only those staff and local businesses of every other football club in the EFL, but those of every club across every sport in the UK” said Cowling.
The revelation of the offer from TPG Capital by The Times comes just shortly after it was discovered on Sunday, that Liverpool and Manchester United had drawn up plans for Project Big Picture, which would see the EFL receive an immediate £250 million, alongside 25 per cent of any Premier League deals in the future.
Meanwhile, EFL chief executive David Baldwin announced that he would be quitting his role having only held it for less than six months, quoting the pandemic and personal issues as motivations for his departure.
Author: Jake Wilkin