FSG partners with 'next John Henry' add another sports…

FSG partners with 'next John Henry' add another sports team to their portfolio

Arctos Sports Partners, minority stakeholders in Liverpool owners Fenway Sports Group, have added another team to their growing sports portfolio.

Having taken a small stake in FSG in 2020 at a time when the Reds owners were looking to free up some capital, Arctos have been on something of a spree when it comes to their sporting investments, adding stakes Major League Baseball's Los Angeles Dodgers, Chicago Cubs, San Francisco Giants, San Diego Padres and Houston Astros, all rivals of FSG's Boston Red Sox, whom Arctos have an indirect stake in.

Earlier this year they closed on a $36m (£29.2m) stake in Italian top flight side Atalanta, while the investment firm’s portfolio also includes the National Hockey League’s (NHL) Tampa Bay Lightning and Minnesota Wild, as well as an indirect stake in FSG's Pittsburgh Penguins. They also have investments in the Golden State Warriors and Sacramento Kings NBA franchises.

They have now added another NBA team to their list after concluding a deal for a minority stake in the Utah Jazz.

No figure has been made public over the size of deal with the Jazz, but it would have to be for more than one per cent of the Utah team, per NBA regulations.

Chad Hutchinson, a partner at Arctos, added: “We believe in Utah and all the amazing things happening in the state and we believe SEG (Jazz owners) is poised to be the next big sports and entertainment group.

"Arctos works with visionary ownership groups, and Utah has that in SEG. Their commitment to giving back to the community and building world-class franchises align perfectly with Arctos’ mission."

Arctos are viewed as more passive investors, deploying capital in teams and organisations that have continued growth potential as opposed to being hands on and looking at ways to grow revenues through their expertise, as has been the case with other investment into FSG through the 11 per cent stake purchased by RedBird Capital Partners for $750m back in March 2021.

Arctos and FSG have strong connections that go beyond the stake that the investment fund has in the Reds ownership.

Founded by former private equity strategist Ian Charles and ex-Madison Square Garden executive David O'Connor, Arctos added a familiar face to their management team at the start of last year, bringing on board a trusted former FSG lieutenant in Theo Epstein, a man who helped deliver success for FSG supremo John Henry at the Red Sox, to advise on strategy. Epstein was a former vice president and general manager of the Red Sox and credited with playing a major role in delivering success to Boston for the first time in 86 years following FSG's 2002 takeover of the team and their subsequent 2004 World Series win.

There are those well placed in the US who have told the ECHO that Epstein could well have a larger role to play within FSG in the future when Henry and Werner decide to either step aside or dilute their involvement, suggesting the same of both RedBird, Red Sox president Sam Kennedy and FSG president Mike Gordon, all seen as key figures in FSG's future.

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