Former Disney CEO Michael Eisner "completed a planned takeover" of League One side Portsmouth, making him the latest int'l business mogul to "snap up an English football club," according to Massoudi, Ahmed & McClean of the FINANCIAL TIMES. The deal will see Eisner's media investment vehicle, Tornante, pay just under £6M ($7.9M) for a majority stake in the club. Reports of a potential takeover began to surface in March "but it faced questions" over whether Eisner could win the backing of Pompey Supporters' Trust, "the fan group that is Portsmouth's majority shareholder." On Wednesday, PST Chair Ashley Brown said, "The supporters fought hard to save Pompey, they've given the club incredible support under fan ownership, ensuring its successful promotion from League Two as champions. Our passionate supporters now willingly pass the custodianship of Pompey to Michael Eisner, his family and Tornante." People close to the deal said that Eisner "planned to make further investments to improve the club and the stadium in addition to the purchase price" (FT, 8/3). In L.A., Stewart Clarke reported Eisner will sit on the board of Portsmouth, along with his three sons, Breck, Eric and Anders, and Mark Catlin, "who has been the club’s CEO for four years and who will continue in that role." Tornante President Andy Redman will also be on the board. Michael Eisner said, "My family and I are thrilled to take on this incredible responsibility as stewards of a football club with such a rich heritage" (VARIETY, 8/3). The PA reported Eisner believes the arrangement with Catlin "continues Mark's leadership and ensures the stability of the club for the long term." In May, the PST, which held a 48.5% stake in the club, "voted overwhelmingly" in favor of selling its shares to Tornante (PA, 8/3).
STAYING PUT: The BBC reported Eisner takes control of a club that was "on the verge of liquidation" when placed in administration in '13. The PST's stake "helped the club recover" from its financial struggles, but Eisner will remove the PST's four representatives from the nine-member board. He "also pledged to form a heritage board" which would protect the club's name, colors, badge and guard, "while preventing relocation to a ground more than 15 miles" from Portsmouth city center (
BBC, 8/3).
U.S. HELP: Tornante was advised in the transaction by Inner Circle Sports, the global sports-focused investment bank based in N.Y. Macfarlanes LLP and Munger, Tolles & Olson LLP served as Tornante's outside legal counsel. Gateley Plc. was the legal adviser to PST. Verisona Law advised Portsmouth Community Football Club Ltd. (Inner Circle Sports).
