Melbourne Victory in record sports club valuation as US firm buys into A-League club

Melbourne Victory could be worth as much as $50m after Miami-based 777 Partners took a stake in the soccer club in one of the most significant deals in Aussie sport.

A-League soccer team Melbourne Victory is set to become the most valuable privately-owned sports club in Australia after clinching a deal with an American investment firm making the club worth up to $50m.

Miami-based 777 Partners, which is also backing start-up airline Bonza’s entry into the Australian aviation market, was announced as a Victory shareholder and investor on Wednesday morning,

Victory chairman Anthony Di Pietro would not comment on the valuation of the deal, but it is understood to involve 777 Partners investing between $5m and $10m into Victory for a minority stake that would likely value the club at between $40m and $50m.

Mr Di Pietro said the influx of funds from 777 Partners would “supercharge the club on its growth trajectory from both a capitalisation perspective and also as a strategic partner on the football side of things. It is going to help us attract, retain and develop talent”. “The club will have direct access to world-class data and analytics professionals, advanced player development techniques and global commercial opportunities,” he said.

777 Partners football director Don Dransfield and Melbourne Victory chairman Anthony Di Pietro. Picture: Supplied

The transaction, which comes a day after Bonza was announced as Victory’s new major sponsor in a four-year deal worth at least an estimated $8m.

While the sponsorship is the largest in Victory’s history, it is not part of 777 Partner’s investment in the club. A private investment firm with $US3bn in assets under management, 777 Partners owns stakes in 45 companies across the aviation, sport, commercial finance, litigation funding and insurance sectors.

It is adding Victory to a portfolio of global soccer clubs including Sevilla in Spain, Italian club Genoa, Belgian team Standard Liege, Red Star FC in Paris and Brazil‘s Vasco da Gama.

The deal comes after 777 Partners went close to buying another A-League club, Brisbane Roar, earlier this year, The Australian has been told.

The Roar, owned by the Indonesian Bakrie family, have been on the market for some time and 777 Partners had negotiations to buy it before pulling out of the process after several months after a sale price of $20-25m for the Brisbane team was discussed. 777 Partners then turned its attention to the Victory.

Under the terms of the deal, Victory will maintain its colours and brand name, as have the other clubs part-owned by 777 Partners. Don Dransfield, the chief executive of 777 Partners Football, will join the board.

Mr Dransfield’s group also has investments in other sporting leagues and media companies around the world. The firm was founded by Josh Wander and Steven Pasko in 2015.

“Football is poised for tremendous growth in Australia, and on this basis, it is strategically important for our group to be here. Melbourne Victory with its success on the pitch and passionate, loyal fan base, is the perfect club for us,” Mr Wander said.

Miami-based 777 Capital has invested in the Melbourne Victory A-League team. Picture: Morgan Hancock/Getty Images

Victory’s valuation puts it ahead of the likes of National Basketball League teams Sydney Kings, which was valued at an estimated $35m when Tesla chair Robyn Denholm bought a stake in the club in March, and Melbourne United.

The ASX-listed Sports Entertainment Network, which owns radio station chain SEN, sold a 5 per cent stake in United in July at a $30m valuation for the team.

National Rugby League team Melbourne Storm was valued at more than $30m two years ago. Fellow NRL club Brisbane Broncos is listed on the ASX and has market capitalisation of about $103m. News Corp, the publisher of The Australian, is the majority shareholder of the Broncos.

The 777 Partners deal with Victory has an option for it to emerge as a majority shareholder in future years. The deal involves the issuing of new shares in what is an unlisted public company.

Victory was advised on the transaction by London-based Tifosy Capital & Advisory, which was co-founded by former Italian soccer star Gianluca Vialli. Mr Di Pietro, the chief executive of fruit and vegetable company La Manna Premier Group, and the family of late Metricon founder Mario Biasin are currently Victory’s biggest shareholders.

Victory also owns a stake in the privately-owned A-League along with the other 11 teams in the competition. The league was valued at about $425m when private equity firm Silver Lake bought a 30 per cent shareholding late last year.

The league is making a $30m bet on a bold digital strategy designed to win the hearts and minds of soccer fans, including running its own news website.

It is about to embark on its second season of a five-year $200m cash and contra broadcast deal with Network 10 and its streaming service Paramount+, which includes the broadcasting of A-League women’s matches.

The 2022-23 season kicks off this weekend.