A New York listed SPAC, called LAMF Global Ventures Corp, is reportedly lining up a takeover of a major European football club.
LAMF Global Ventures is backed by American entertainment industry executives and has football dealmaker Keith Harris on-board as an advisor, according to Sky News.
Harris is described as a lifelong Manchester United fan and was previously, in 2010, engaged by the so-called ‘Red Knights’ group of investors which sounded out a possible move to buy United, though that deal didn’t materialise.
The banker and football finance rainmaker, meanwhile, has been involved several deals that went ahead including Fulham’s takeover by Jacksonville NFL team-owner Shahid Khan, the 2006 deal for Aston Villa by Randy Learner (who sold the club again in 2016), along with deals involving Everton, Crystal Palace and Manchester City.
LAMF is expected to go public in New York later this week via a reported US$200mln initial fundraise.
Typically a SPAC (special purpose acquisition company) – otherwise referred to as a ‘blank cheque’ company – are effectively cash-shells which float onto the stock exchange with an initial pot of cash that’s used as a foothold in mergers and acquisition activity, often followed by further equity funding and/or share-based transactions to close out takeovers.
This latest takeover talk comes after the high-profile takeover of Newcastle United, which is most recent in a series of deals for Premier League and European clubs. It also comes at a moment following the pandemic where clubs are seeking to recover and recapitalise following an extended period in the two prior seasons without fans in stadiums.