A group of Championship clubs are urging the EFL to sell a stake in their three divisions to private equity in an attempt to safeguard their future.
Sportsmail has learned that an alliance of six clubs are working with American investment bank JP Morgan to drive interest in a sale, with the clubs’ valuation of the EFL at around £2billion.
That figure is £500million higher than the only concrete offer the EFL have received to date from TPG Capital, full details of which can be revealed today.
Six Championship clubs are urging the EFL to sell a stake in their divisions to private equity
The alliance is working with JP Morgan over a sale with a £300million bid still on the table
EFL chairman Rick Parry rejected TPG’s initial approach last month but their £300m bid for a 20 per cent stake, rather than the £400m the clubs want, remains on the table and they want a deal by the end of the year.
Other clubs are opposed to an equity sale, particularly if it involves diluting their voting rights, and want the EFL to intensify their talks with the Premier League over a rescue package.
TPG’s proposal is being taken seriously enough to have been presented to the EFL Board, however, while a number of clubs are also understood to have held individual talks with the American company.
EFL chairman Rick Parry (right) rejected TPG Capital’s £300m bid last month
Their offer is based on a £300m investment in the EFL in return for a fifth of its commercial income and 51 per cent voting rights, effectively giving them control of all future commercial and structural decisions.
Talks with the EFL have been conducted by Malte Janzarik, TPG’s head of European investments, and Dominic Coles, a former BBC executive and chair of rights company GB Sport Media.
Sportsmail has learned the full details of TPG’s proposition, which is to give £270m to the clubs to help cope with financial challenges caused by Covid-19, plus a further £30m set aside to create a new centralised commercial operation to manage all future broadcast, sponsorship and streaming negotiations.
TGP Capital’s offer would have seen £270million given to EFL clubs to safeguard their future
Of the £270m payout, £135m would be paid to the EFL up front, with a further £33.75m due after each of the next four years.
In addition, TPG are willing to donate £3m to the EFL Trust, the organisation’s charitable arm which runs educational and fitness projects in the communities served by its 72 clubs.
SO, WHO ARE TPG?
A private equity firm based in San Francisco seeking to buy a stake in the EFL, with Sportsmail revealing details of their offer for the first time.
It would be a £300m investment in return for 20 per cent of EFL’s commercial sales and 51 per cent voting rights, valuing the three divisions at £1.5bn.
Around £270m would be given to the clubs — 50 per cent up front followed by 12.5 per cent in each of the next four years — with £30m set aside to set up a bespoke…