SNEAK PEEK
- Watford FC ventures into uncharted territory by offering a 10% stake to fans and investors, marking a significant shift in UK football financing.
- With a revenue of £66.2 million ($84.6 million) in the year leading up to June 2023, Watford FC’s valuation stands at £175 million.
- Republic’s involvement signals the largest digital equity offering in English football club history.
English football club Watford FC plans to sell a 10% stake to fans and investors, marking a rare move in UK football financing. The club has partnered with Republic, a digital asset investment firm, to facilitate the sale. Historically, sports teams have relied on debt financing from fans, but this initiative marks a departure from traditional funding models.
Watford FC’s revenue in the year to June 2023 was £66.2 million ($84.6 million), valuing the club at £175 million. Despite investors not having voting rights, they will receive dividends from digital shares, enhancing the appeal of the investment. Watford FC is primarily owned by the Pozzo family, which is known for owning the Italian team Udinese Calcio. The club’s chairman and CEO, Scott Duxbury, is determined to take the club back to the Premier League, where it has spent six out of the past ten seasons.
Republic, backed by investors including Michael Novogratz’s Galaxy Digital, will facilitate an English football club’s most extensive digital equity offering. This move signifies a progressive shift in football club ownership dynamics, offering fans and investors a unique opportunity to participate in club ownership.
The initiative is expected to foster greater fan engagement and financial stability for the club. While fans won’t wield voting rights, receiving dividends from digital shares represents a new frontier in football club investments. Watford FC’s decision to offer a stake to fans and investors reflects a broader trend of democratizing ownership in the sports industry.
Overall, Watford FC’s innovative approach to financing sets a precedent for other football clubs, signaling a shift towards more inclusive and sustainable funding models in the sport.
