Atairos have made final decision about Aston Villa takeover as Wes Edens speaks out - Kieran Maguire
Wes Edens and Nassef Sawiris may be the main men at Aston Villa but a third partner, the private equity firm Atairos, is now almost...
Wes Edens and Nassef Sawiris may be the main men at Aston Villa but a third partner, the private equity firm Atairos, is now almost as significant a shareholder.
Having first invested in Edens and Sawiris’ V Sports holding company last year, Atairos now control about 31 per cent of the club’s equity.
For context, that is almost as much as Edens and Sawiris hold respectively.
Significantly, £50m cash injection into Aston Villa that came from Atairos rather than the two principle owners recently valued the club at almost £1bn.
And while the market may not deliver that price in practice, it is indicative of how much Aston Villa’s stock has appreciated since the NSWE takeover in 2018.
But what are Atairos’ long-term plans at Villa Park, where Unai Emery has delivered the kind of success that has not been since in B6 for decades?
The private equity model is pretty simple – buy low, optimise costs and create value, then sell high.
To explore how Villa fit into this model, if at all, TBR Football spoke exclusively to Liverpool University football finance lecture, Price of Football author and industry insider Kieran Maguire.
- READ MORE: ‘Huge’ update on £40m Aston Villa off-pitch deal that will see them reach Real Madrid status
Wes Edens’ comments on minority investment
In a rare interview earlier this week, Edens commented on the private equity model and minority investment in general, albeit in the context of his ownership of NFL franchise the Milwaukee Bucks.
“Consolidating the ownership we thought was a real goal, for lots of reasons,” he said.
“No offense to the people who sold, they invested, they did really well in their investment, but I think having fewer owners in the group makes things a little easier to deal with.
Edens’ stance, says Maguire, aligns well with Atairos’s ambitions at the club. They want to be a silent partner rather than an active voice behind the scenes, he says.
“I think Atairos don’t want to be involved in policy decision at a strategic, managerial or operational level. They have faith in Edens and Sawiris to make the right decisions.
“So while they have a large bloc of shares, I don’t expect them to be leveraging on that in terms of trying to change the structure.
“They will have seen what is happening at Chelsea and Crystal Palace with shareholders in dispute. That has not moved either of those clubs forward.
“The logic will be to tell Edens and Sawiris to get on with and then figure out their exit strategy in seven to 10 years. They will expect to have made a decent return by that time.
Atairos have made their final move at Aston Villa
The £50m share issue that saw Atairos’ stake increase to 31 perc cent earlier this year is likely the last time they will change their stake in the club, forecasts Maguire.
That means that, contrary to speculation among some supporters at Villa Park, the London-headquartered firm are not angling for a full takeover.
“I don’t think we will see any more from Atairos. Edens and Sawiris have sold what they want to sell.
“They have benefitted financially and invested a lot.
“Villa have made significant losses since the takeover but Atairos have provided independent funding that can be for the benefit of the club in terms of its infrastructure assets and so on.”
What's Your Reaction?
