U.S. banks that have carved out a "lucrative niche financing the construction and renovation of sports stadia are making a push into Europe," according to Davies & Slater of REUTERS. Goldman Sachs and Bank of America Merrill Lynch "dominate the sector," using stock and bond issues, the sale of naming rights and securitizations of future ticket and TV revenues to fund improvements in infrastructure. Goldman Sachs Managing Dir Greg Carey said, "We are building on a base in Europe, what we call greenfield. I want to get to 60 stadiums done, I'm on 40 now." Goldman and BAML were among banks that lent Tottenham £400M ($507M) in May to help finance a new 61,500-seat stadium in London. The five-year loan "is secured on the new stadium" and related commercial and matchday revenues. Carey has orchestrated stadium deals worth more than $20M for the MLB N.Y. Yankees, NFL San Francisco 49ers and "other elite American teams" and has "arranged private transactions" for AS Roma and Inter Milan. The banks "do not disclose how much they make from sports financing," but Atlantic Securities banking analyst Chris Wheeler said that "the margins are very, very attractive." The Tottenham deal and proposals by Dutch side Feyenoord "include plans to regenerate the area around their stadiums." Europe's "love affair" with football means it is seen as "the main area of opportunity there." Big-name teams including Feyenoord, Serie A sides AS Roma and Fiorentina, Chelsea, Everton and Barcelona "all have plans for new or improved stadia seating up to 100,000 people" (REUTERS, 6/22).
