Arctos Partners acquires minority stake in PSG

Featured image credit: Tim L. Productions on Unsplash

Private investment firm Arctos Partners has acquired a minority stake in Paris Saint-Germain, with the deal to include support for the Ligue 1 club’s “real estate” initiatives amid uncertainty over its future at the Parc des Princes.

PSG’s owner, Qatar Sports Investments (QSI), announced today (Thursday) that it had agreed a landmark strategic partnership and investment deal with Arctos. The deal will see Arctos acquire a minority common equity stake in the club, which QSI has owned since 2011.

QSI said the investment will go towards growing PSG’s operation and support the club’s strategic real estate initiatives, including relating to its stadium and future development phases of its training centre at Poissy in suburban Paris.

Terms of Arctos’ investment have not been disclosed but the Financial Times has reported that the deal values PSG at more than €4bn (£3.4bn/$4.3bn). The report, which cited two people with knowledge of the matter, said that Arctos will buy up to 12.5% of the club.

QSI said that Arctos will also provide strategic services, expertise and insights aimed at helping PSG achieve its ambitions, including continued international expansion into new markets such as North America. Arctos will not influence any on-field sporting matters, which QSI will continue to have full control over.

Arctos has investments in more than 20 professional sports organisations across the NBA, NHL, Major League Baseball, Major League Soccer, Formula 1 and European football. Last month, Arctos joined forces with Oak View Group’s GOAL sustainability platform and the company has previously invested in US sports and entertainment consulting firm Elevate Sports Ventures.

Nasser Al-Khelaïfi, chairman of QSI, said: “Arctos is a fantastic partner to help us achieve our goals, bringing strategic expertise, ideas and innovation to our business, while providing investment and new relationships to support our footballing and sporting goals.

“From day one, they have passionately believed in our project, our plan and vision for the club – and we are proud to have them as part of our family. Today is an important milestone in Paris Saint-Germain’s history, which will contribute greatly to the continued success and growth of our great club.”

Doc O’Connor, co-founder and managing partner of Arctos, added: “Our investment in the club fully aligns with our strategy of partnering with best-in-class teams across North America and Europe. We are excited to be joining the PSG family and look forward to working together with president Nasser Al-Khelaïfi to maximise the club’s potential, providing strategic expertise and investment to drive the next phase of development, growth and success of this great institution.”

Last month, French newspaper L’Équipe reported that PSG was continuing to explore plans for major renovation work at the Parc des Princes despite uncertainty over its long-term future at the 48,000-capacity stadium.

PSG is reportedly considering adding a roof and a retractable pitch to the stadium, which is owned by Paris City Council. PSG has a number of options on the table and the report added that the club is still keen on submitting a bid to buy the Stade de France, which it would have to do by January 3.

In March, PSG launched a consultation with its fans over the club’s stadium options, with four possibilities outlined. Options included a “significant” renovation of the Parc des Princes, a move to a renovated Stade de France, a new stadium to the west of Paris, and a new venue within a 20km radius of the Parc des Princes that could encompass the commune of Poissy.

PSG is said to be in talks with Pierre Ferret and Populous over the potential design of a revamped Parc des Princes. If the club is unable to complete a deal to purchase the Parc des Princes, it could look to acquire the Stade de France, which is currently owned by the French government, or switch to one of two new sites in the city.

PSG has played at the Parc des Princes since 1974 but feels restricted by its 48,000 capacity, with matches at the venue constantly sold out.