JPM - Brera Holdings is Looking to Score with MCO

2024-04-08 08:15:51 ET

DENVER, Colo., Apr 08, 2024 ( 247marketnews.com )- Brera Holdings PLC (NASDAQ: BREA ), MicroStrategy (NASDAQ: MSTR ), Manchester United (NYSE: MANU ), Goldman Sachs (NYSE: GS ), and JP Morgan (NYSE: JPM ).

It seems like every day another asset class is hitting new all-time highs; the Dow crossed 40,000, gold is north of $2,300, and U.S. median home prices are up more than 37%, since 2020, to $417,700.

In fact, a quick google search confirms that most asset classes seriously increased in value over the last few years and, if you didn’t already own tech stocks, real estate, gold, or other assets before, it may cost much more to own them in the future.

In the world of high finance and booking profits, as the old saying goes, “timing is everything”, and being first has big advantages; especially if you’re the first to implement a good idea.

As far as firsts go, the Brera Holdings IPO Is Next Level Genius.

Brera Holdings PLC (NASDAQ: BREA ) began trading in January 2023, to pioneer the public professional sports multi-club ownership (“MCO”) model and develop a global portfolio of emerging football clubs in a space that is projected to be a top asset class.

Micheal Saylor employed a similar strategy to acquire Bitcoin (BTC: USD), which sent shares of MicroStrategy (NASDAQ: MSTR ) over 170% higher this year, to a 52-week high of more than $2000.

(1 year chart)

Saylor wisely used MSTR stock to raise money through private placements and purchase Bitcoin during its infancy, which allowed investors to become asset owners, by default, without outlaying significant investment resources. He shouldered the “risk” for small investors and it paid off handsomely for him and his shareholders.

Similarly, (NASDAQ: BREA ) by introducing the publicly-traded MCO model to global soccer, Brera is democratizing sports club ownership like never before, as it continues to line up acquisition targets. This innovative approach allows investors and fans to hold a stake in a diversified portfolio of professional sports clubs, without the upfront millions to billions of dollars needed to buy a team, marking a shift from the exclusive realm of billionaires.

Professional teams, especially soccer, are in the midst of a financial sector Renaissance, and high profile billionaires, like Jim Ratcliff, who paid ~$1.5 billion for 25% of Manchester United (NYSE: MANU ), are confirming the high stakes on and off the field.

Professional soccer rewards successful lower-tier league teams with valuable promotions to premier leagues and smaller teams can make big returns through player development programs.

Brera Holdings (NASDAQ: BREA ) introduced the publicly-traded MCO model to global soccer, democratizing sports club ownership like never before. This innovative approach allows investors and fans alike to hold a stake in a diversified portfolio of professional sports clubs, marking a shift from the exclusive realm of billionaire investors to the accessible domain of the public market.

The Irish holding company seeks to build on the legacy of the Brera FC brand. Brera FC, known as “The Third Team of Milan” is the Company’s first soccer team purchase. Brera then acquired a Macedonian men’s Pro Soccer team, an Italian pro women’s Volleyball team, and a Mozambique second division team that has since been promoted to Mozambique’s premier league.

Brera is looking to acquire additional teams that they can develop into world class operations. Teams with rich histories and a love for the beautiful game that, with resources and management, can work towards lucrative promotion and player development goals.

The pace in which billionaires and celebrities began pouring money and time into soccer teams increased, following Brea’s IPO. According to the Robb Report the list includes Ryan Renolds and Rob McElhenney, who famously purchased Wrexham A.F.C.

The headlines state that Wrexham owe the actors millions, but the experts know that’s a pittance compared the club’s estimated valuation increase, which will only increase with promotion.

Those returns help explain Tom Brady’s Birmingham City play, J.J. Watt investing in Burnley FC, LeBron James Liverpool FC move, and Michael B. Jordan’s AFC Bournemouth stake.

Other celebrities are more interested in U.S. clubs: Will Ferrell, Mia Hamm, and Magic Johnson are all Los Angeles FC stakeholders, while a group led by Natalie Portman started Angel City F.C.

Many of these celebrities are looking for the opportunity to boost a second or third-tier team into top league contenders, which comes with serious and immediate value appreciation.

They all want to be a part of the next soccer success story, like when Red Bull purchased fifth-tier side, SSV Markranstädt, a few years ago, and turned it into $1+Billion RB Leipzig.

Developing championship caliber teams can quickly fuel big asset value increases. According to Forbes, 27 sports teams at least doubled in value, over the past five years; 13 of which captured at least one league championship and enjoyed the cascading effect of higher ticket prices and bigger sponsorship deals.

Everybody loves a winner and fielding the right team happens in the office. In this case, Brera Holdings assembled one of the most storied teams in all of soccer. These men are not just soccer greats or captains of industry, they built global brands, like Luxury Lifestyle Executive, Massimo Ferragamo, World Cup 94 Director and MLS founder, Alan Rothenberg, Sports Business Leaders, Paul Tosetti and Marshall Geller, as well as Football Icon Giuseppe Rossi.

Then famed Investment Banker, Daniel McClory, took a large position in the company, after Brera announced a $100 million mixed shelf offering to help execute their acquisition strategy.

The Company recently stated that “Brera is in late-stage negotiations with professional football acquisition targets and is engaged in substantive discussions with several additional teams, including premium league targets.”

“The acquisition of a professional football club will demonstrate our ability to execute the MCO model at the highest level, and we are eager to announce the transaction details when finalized,” said Brera Holdings CEO, Pierre Galoppi. “In addition to acquiring clubs that have significant upside potential, our goal is to partner with clubs that share our fundamental belief in player culture and development. By aligning Brera with high profile clubs and partners who share our vision, we believe it will unlock several layers of player progression and deliver new revenue streams by building champions, as opposed to buying them,” Galoppi concluded.

With these recent announcements, it’s easy to see the beginnings of a well-planned strategy taking shape that could fundamentally change the face of sports team ownership and soccer forever.

Individual investors with ownership stake in multiple teams have multiple chances to win, from multiple teams, on multiple continents, during multiple seasons.

This should generate year-round news coverage and give Brera the opportunity to find or develop the next Messi or Rolando.

The collective worth of premier sports teams in North America and Europe surpassed $400 billion, so investment banks and consultants have taken notice of this unprecedented opportunity.

Goldman Sachs (NYSE: GS ), which worked on Chelsea Football Club and Formula One deals, created a Sports Franchise unit, within its investment banking division, to provide wealthy clients with opportunities to invest in sports team financing.

According to the WSJ, “Limited supply is one of the main attractions of investing in sports teams, as opportunities arise only when team owners pass away or encounter troubles, per the report. It’s also a status symbol for the wealthy and famous.”

JP Morgan (NYSE: JPM ) recently established a Sports Investment Banking division, following its involvement in the (NYSE: MANU ) transaction, and reported “The sports sector has evolved into a significant asset class, drawing an increasing number of institutional investors.”

Deloitte, a leading consultancy firm, predicts that high-value sports properties will reach unprecedented valuations this year, with institutional investors keenly eyeing the industry for potential opportunities.

With unprecedented valuations come unprecedented opportunities. Brera and its team are playing to position the Company to be in the right place at the right time to leverage their expertise into many possible winning scenarios.

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