Minority stake sales and asset carve outs: the rise of women’s football and the options available for clubs and investors
As financial pressures intensify across football, clubs are turning to increasingly sophisticated corporate financing techniques to raise capital, manage regulatory exposure, and unlock the value of previously overlooked assets.
In this article, associate Will Talbot-Davies explores how minority stake sales and the carve-out of assets have become two recent strategies which have moved rapidly into the mainstream here in the UK.
What has caused the recent trend in structural innovation for football clubs?
One of the clearest contributors to this shift is the tightening of financial regulations.
In England, the Premier League’s Profitability and Sustainability Rules (PSR) were brought in during the 2013/14 season which limit losses to £105 million over a rolling three year period. As a result, many clubs in recent years have increasingly looked to alternative means of raising capital to prevent the sort of spending restraints that could negatively impact results on the pitch.
For example, it was widely reported last year that Aston Villa was considering the sale of a stake in its women’s team to help offset its disclosed financial losses of £195 million over the previous two seasons. This followed Chelsea’s precedent setting sale of its women’s team to an affiliated entity in 2024, an accounting manoeuvre that increased revenue and enabled the club to comply with the PSR rules without having to rely on a traditional market sale.
While transactions of this nature have come under scrutiny, these developments demonstrate how the financial regulations are influencing corporate behaviour and pushing clubs toward asset restructuring.
The rise and rise of women’s football
Any discussion of investment or asset carve outs must first recognise the transformation of women’s football. Deloitte reported last summer that The Women’s Super League (WSL) generated £65 million in aggregate revenue in the 2023/24 season, a 34% year on year increase, with every club surpassing £1 million in annual revenue for the first time. Matchday revenue also increased 73% while broadcast revenue rose 40%, underpinned by record attendances and rising global interest.
England Women’s Euro 2025 triumph has only enhanced the pace of growing interest in women’s football with media rights deals and sponsorship opportunities surging. This has underlined the high-growth commercial opportunity that is women’s football and, consequently, there has already been substantial investment from private equity with more likely to follow over the coming years.
For football clubs in general, this now means that their women’s team is a key monetisable asset which can prove crucial in supporting the club in meeting the financial regulations.
Minority stake sales: what are the key considerations?
A growing trend in football has become the sale of a minority stake to raise capital.
This can be an attractive proposition for both the club and potential investors for the following reasons:
- for clubs, whether the sale of the minority stake is in the overall football club or a carved out unit (e.g., its women’s team), this offers the key benefit of access to equity capital without having to relinquish full control.
- for potential investors, a minority stake can provide them with prestige and exposure to the long term appreciation of sports assets without requiring operational involvement.
However, minority transactions raise several important legal considerations which both parties must be mindful of before any deal can be agreed:
1. governance and control rights
Investors typically seek enhanced minority protections which may include vetoes over major strategic decisions, dividend policies, and/or future fundraising rounds.
Structuring these protections while preserving the club’s control, particularly when sporting operations must remain flexible, is a delicate balance to be struck and may require significant negotiation.
2. valuation challenges
It is important for clubs and investors alike to be aware that valuations of women’s teams or other carved out units may attract regulatory scrutiny.
Following recent transactions, regulators are now paying much closer attention to what constitutes ‘fair market value’ when a valuation impacts PSR compliance. It is therefore essential to ensure that independent valuation processes and arm’s length structuring are in place before any transaction occurs as the consequences of non-compliance can be very serious (e.g. points deductions).
3. multi club ownership (MCO) compliance
The MCO model has grown in recent years throughout men’s and women’s football as it can offer a diverse revenue stream and synergise operations within a group of football clubs all with the same owner. The MCO model has proven particularly popular in women’s football as it can also help provide the investment needed to grow the women’s game.
However, this MCO model has recently come under scrutiny due to integrity concerns where two commonly owned clubs compete in the same competition (e.g. the UEFA Champions League). This can therefore add an additional layer of regulatory risk for football clubs which needs to be considered, especially given the increasing investor interest in these MCO models.
Consequently, it is crucial that any corporate restructuring of a football club within an MCO model is done carefully to navigate the regulatory rules and to mitigate any conflicts of interest.
Carving out assets to unlock hidden value
Another way for a football club to generate capital is to carve out its assets in order to create separate self financing business units capable of attracting new investors. The most common example of this is a football clubs women’s team but other assets capable of being carved out include media rights portfolios, academies and real estate.
Currently, the only WSL club which is separate from any long-standing football team is the London City Lionesses. Therefore, and as touched on above, the rapid growth in women’s football has made carving out standalone women’s teams increasingly attractive. An asset carve-out would enable the women’s team to still play under the name of the historic football club (e.g. Manchester United) but it would now be owned by a different legal entity. The new entity’s sole focus would be to grow the carved-out asset and would enable third-parties to provide investment more easily.
An asset carve-out can be a lucrative means of raising capital however it is not a straightforward process and should not be a decision that is taken lightly. It is therefore fundamental to engage with lawyers before structuring these transactions in order to address some central issues such as IP separation, contract migration, stakeholder consents and regulatory approvals.
Some of the key legal considerations can be summarised as follows:
1. corporate structuring
Creating a separate legal entity requires transferring staff, player contracts, IP rights, sponsorship agreements and regulatory licences. Football clubs must also first ensure that the newly carved out legal entity meets the league and federation requirements.
2. media rights allocation
As media rights for women’s competitions expand, football clubs must ensure that rights are clearly delineated between the parent company and any carved out entity to avoid future disputes.
3. stakeholder alignment
Any carve out of a football club will affect sponsors, kit suppliers, and even athlete representation. Early engagement with commercial partners is therefore critical to prevent contractual friction during and after restructuring.
How does the future look for football clubs?
The PSR Rules are due to change for the upcoming 2026/27 season with a ‘Summary of Squad Cost Ratio and Sustainability and Systemic Resilience’ coming into force as the new financial regulations. Also, an Independent Football Regulator has recently been established with the intention of strengthening the governance and long-term stability of English football.
However, given that all football clubs are constantly seeking to gain a competitive advantage, it seems unlikely that clubs will stop exploring the options available to them to increase revenue or raise capital any time soon. Moreover, the growth in women’s sport shows no sign of stopping and investor appetite in women’s football in particular is only likely to intensify further.
Minority share sales and asset carve outs are therefore no longer niche strategies, they are becoming core tools in the financial and strategic playbook of modern football clubs.
Please get in touch if you are a football club or an investor as our corporate and commercial solicitors in Russell-Cooke's sports law team have significant experience in assets sales/purchases and minority investments and are well placed to assist you.
About Will
Will Talbot-Davies is an associate in the corporate and commercial team.
Get in touch
If you would like to speak with a member of the team you can contact our sports law solicitors by telephone on +44 (0)20 3826 7526 or complete our enquiry form.
