Early-stage talks around the sale of Utah Soccer Holdings are beginning around $500M, according to a source with knowledge of the situation. Utah Soccer includes Real Salt Lake (MLS), Real Monarchs (USL), Utah Royals FC (NWSL) and Rio Tinto Stadium, among other soccer-related entities. Both finance and soccer sources have pegged the benchmark sale price attached specifically to RSL around $325M, the expansion fee that David Tepper paid for Charlotte FC last year. The league’s most recent control transaction was in September '19, when Joe Mansueto acquired 51% of Fire at a $400M valuation (including his initial 49% acquisition the prior year, Mansueto paid a total $322M for the team).
HANSEN FALLOUT: Real Salt Lake Owner Dell Loy Hansen, who acquired full ownership of RSL in October '13 after three-plus years as a minority investor, recently decided to sell Utah Soccer following numerous reports alleging a history of racist comments and behavior in addition to other misconduct, behavior for which he is currently under investigation by MLS and NWSL. Hansen’s investigation also follows anti-player protest comments he directed at his team on Aug. 27, saying on a local Utah radio station, “The disrespect is profound to me personally.” Chief Business Officer Andy Carroll has been on a leave of absence since Sept. 1 and is also under investigation by both U.S. pro soccer leagues over allegations of sexism and workplace misconduct.
OWNERSHIP INTEREST: Larry H. Miller Sports & Entertainment, which owns the Jazz and Triple-A Salt Lake Bees, and Ryan Smith, CEO and co-founder of Utah-based software company Qualtrics, have expressed initial interest in Utah Soccer, sources said. Texans DE JJ Watt also initially tweeted his interest in Utah Soccer on Aug. 30. A source familiar with the situation said Watt and his representatives have started the exploratory process of assessing what his involvement could look like. In an Aug. 27 tweet, Toronto FC MF Jozy Altidore said, “I’m involved in a group that’s ready to purchase it. Time for change.” It is unclear who else is involved in Altidore’s group or how it’s approaching a potential investment.
PANDEMIC DISCOUNT? Some sources questioned if the eventual buyer of Utah Soccer will get a discount as a result of the coronavirus pandemic, possible brand damage related to Hansen’s actions or a limited buyer’s market. Still, a built-in facility infrastructure and strong community ties are attractive qualities, people said. Over the past 10 days, multiple sources have reiterated that the present goal for Utah Soccer is to sell together all of its assets versus orchestrating multiple sales. In regards to a sale timeline, one person with knowledge of the process said that “the sooner, the better.”
