North America’s Major League Soccer has regained full control of Soccer United Marketing after repurchasing the stake in its media and marketing arm held by private equity firm Providence Equity Partners.
Providence originally made the investment in January 2012 and while financial terms were not disclosed, the Bloomberg news agency said the private equity firm tripled its initial investment.
Providence is said to have paid $150m (€133.9m) for a 25 per cent stake in 2012. However, Bloomberg noted that six teams have joined MLS since that date, diluting Providence’s original share.
Providence has been the only outside investor in SUM. In addition to providing capital, Providence has served on SUM’s board of governors, contributing to strategic decision making.
Jonathan Nelson, founder and chief executive of Providence, said in a statement: “By combining the most popular sport in the world with the largest media market in the world, we knew MLS had a unique opportunity.
“(MLS commissioner) Don (Garber), his team, and the ownership group have exceeded all expectations in driving the league’s growth in teams, attendance, viewership, and sponsors – all while investing in the quality of the game and the experience for fans. With its solid financial footing and growth trajectory continuing, we expect MLS and SUM to keep on exceeding expectations, and we wish them great success.”