Achi news desk-
The Town Announces New Investment of £105m from Bright Path Sports Partners
Friday, 22 March 2024 17:01
Town have announced a £105 million investment from US private equity firm Bright Path Sports Partners, which has secured a stake of just over 40 per cent of the club.
In a statement, the club outlined the development: “The investment is being made to support the club in the long term and it comes at a time when the Tri Lions fund, represented by Berke Bakay and Brett Johnson at board level, also significantly increase its investment.
“Bright Path Sports will be represented by co-founders Jake Zahnow and Phillip Ciano. Their investment includes a number of limited partners, and Sam Simon, founder of Simon Group Holdings and Simon Sports, is the main financier.
“Following Bright Path Sports’ investment, ORG, which manages funds for PSPRS (Arizona Public Safety Personnel Retirement System) and is led by Ed Schwartz, remains the majority and controlling shareholder in the Club , retaining a holding of around 50 per cent. The remaining 10 per cent is made up of smaller investors including the Three Lions [and former owner Marcus Evans].
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“CEO Mark Ashton will continue to manage the day-to-day running of the club, with new investors Bright Path Sports providing capital and strategic thinking that will significantly benefit the club.”
Schwartz, co-founder and principal of ORG, told the club’s website: “When we bought Ipswich Town in 2021, we did so with the initial aim of restoring the Club to the Championship and becoming competitive at this level, with the plan always involving bringing in a partner when the time was right.
“The progress of the club means we feel the time is now and we are excited to welcome Bright Path Sports. Alongside Mark Ashton’s continued day-to-day leadership, we are delighted that he has further committed his future to the club, we look forward to seeing Bright Path bring significant value to Ipswich Town in the coming years. “
Blues CEO Ashton added: “We are excited to welcome Bright Path Sports on another landmark day in the club’s history.
“This is a day that further secures the long-term future of the football club and gives us the means to move the club forward as we benefit from the wide range of skills and experiences that Bright Path investors bring.
“The investment will continue to support the club in the medium and long term, with the largest immediate use being to support a number of key infrastructure projects, including the significant redevelopment of the training ground at Playford Road.”
Bakay, one of the Three Lions, said: “We are delighted that Bright Path has committed capital to the club alongside the additional money we have invested.
“The start of our journey in Ipswich has been an amazing one and we look forward to continuing it alongside our new partners.”
Sam Simon, lead investor in the Bright Path-Ipswich link, said: “We are excited to be making this investment in a great football club.
“We love the history, the potential for the future, the passionate fans and the management of the club, who are amazing people. We invest in people and this is perfect for us.
“We believe in investing for the future to give the team and management the tools to do their job and we’re excited to be working together.”
Bright Path Sports co-founder Jake Zahnow added: “Phil and I looked at teams around the world for potential investments and, after meeting Mark and Ed, we stopped looking.
“We are here to provide capital while offering our input whenever Mark and Ed need it, but first and foremost our job is to support them whenever they need it.
“Mark and the team at Ipswich have in-depth knowledge and extensive experience of running football clubs and we are delighted with the direction the club is moving in, while looking forward to the future.”
The new investment has led to changes at board level with Simon and Zahnow joining the board of Gamechanger 20 Ltd, the club’s parent company, which was set up to complete the process of buying the Blues from former owner Evans .
Ashton will also join the board of Gamechanger 20 Ltd, while Town chief operating officer Luke Werhun will join the boards of Gamechanger 20 Ltd and the football club itself.
Ed Schwartz, chairman Mike O’Leary and chief financial officer (CFO) Tom Ball will continue as board members of Gamechanger 20 Ltd and the football club.
We understand that discussions regarding the investment have been ongoing since before the club’s promotion to the Championship with the club’s owners having made their intention to bring in another investment clear since the takeover.
The Bright Path Sports Partners website outlines their mission statement: “Bright Path Sports Partners is the first ever private equity and advisory firm dedicated to raising and deploying Native American capital to professional sports franchises, facilities and ancillary opportunities.
“Bright Path brings lucrative professional sports and related opportunities to a historically underrepresented class (Native Americans), while meeting the ongoing trend in professional sports to promote equity and inclusion from ownership to the front office and beyond .
“Bright Path combines a mission of diversity and social equity with more than 75 combined years of experience in sports law, finance, management and Native American investment.”
The website also includes brief biographies of Ciano and Zahnow. About Ciano, he says: “Phil is a founding partner of Ciano & Goldwasser, LLP – a national sports law/deal boutique representing private and public companies, global talent agencies and various investment funds.
“Clients include public and closely held companies and international sports agencies/certified agents in professional baseball, basketball and football.
“Phil is responsible for the overall leadership of Bright Path as well as establishing professional sports and supporting investment opportunities.
“He is an Ohio licensed sports agent, an active member of the Sports Lawyers Association, and sits on multiple boards including that of the American Cancer Society.”
About Zahnow, he says: “Jake has decades of experience in corporate development and management of startups and fortune 500 companies in the automotive, building materials, retail and distribution industries.
“Jake has deep experience in operations, corporate finance, family office management, private equity and mergers and acquisitions.
“Jake is primarily responsible for initiation and operations and will serve as Bright Path’s chief financial officer.”
The Simon Sports website describes itself as “a sports investment company and management group that serves as an umbrella for the sports ventures of Sam Simon and his son Peter Simon. Simon Sports is headquartered in Birmingham, Michigan.”
It has two divisions, the operations division, which focuses on sports teams, providing day-to-day support to the company’s management of the ‘franchises’ it owns.
And investments, which the website says “identify and contribute to cutting-edge technologies and diverse developments emerging across the sports industry.”
The Halifax Mooseheads ice hockey side is mentioned in his portfolio, as well as other hockey and golf investments.
Simon fled Iraq aged nine in 1973 with his family after being persecuted as Armenian Catholics.
Atlas Oil Co. launched in 1985 with one delivery truck and has built it into a multibillion-gallon-per-year fuel wholesaler with over 500 employees.
That led to the formation of Simon Group Holdings, based in Birmingham, MI.
TWTD first got a hint that new investment was imminent after the Sunderland game in January when CEO Ashton and COO Werhun were seen giving unidentified Americans a ride from Playford Road, then later they were similarly seen getting showing them around Portman Road and taking pictures in the dugouts.
A full interview with Schwartz, Ashton, Simon, Zahnow, O’Leary and Bakay, is now free to watch on the club’s TownTV.
Photo: Action Images
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| Blueberry7 added 17:12 – March 22
It’s Friday night with no football tomorrow but it feels like we’ve already won something this weekend.
Amazing. This is our time. COYL (women) tomorrow. |
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| wiggi71 added 17:34 – March 22
Absolutely amazing how our club has changed. It makes you realize how bad the Marcus Evan era really was. |
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| Marcus added 17:34 – March 22
From a purchase of £40m to a valuation of £262.5m in 24 months is a very impressive return and shows the value of investments in a good position and good leadership. The only defense I would give the previous owner is that what he did was not so unlike many other clubs in lower divisions – if he wants to return to owning a football club then he needs to start smaller and learn from both. experience and seeing how things are done right.
In addition the board will grow with new stakeholders/owners as we slowly transform from being a League One sleeper to being on the brink of the Premier League. Even if we yo-yo for a few seasons at least we will enter the parachute money scale while we continue to build. This season our first target was to stay up, second to make the play-offs and ultimately to win promotion. The first two have been achieved with the last one still realistically on the table. It’s great progress even if we lose out this year. Continue to grow and the Premier League will be our default. |
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| carlisleaway added 17:51 – March 22
In 5 years we will be millionaires Rodney
All we have to do now is get out of the Championship COYB |
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| run around added 18:13 – March 22
Does anyone know if the money the club receives for the shares will be able to be used in the FFP/SCMP allowance as income received by the club going forward? |
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| our onlyme added 18:34 – March 22
What’s not to like about it? |
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| Spirit of John added 18:38 – March 22
Does this mean my 100 shares are now worth something? |
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| MK1 added 18:48 – March 22
More amazing news. This club is on some upward journey, which makes such a change. The club is in very, very safe hands. |
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| ButcherBrokenNose added 18:59 – March 22
Church members: you are absolutely right. We should go and talk to all the English who were looking to invest in the club when Evans wanted to sell to see if they were still interested. Also, look at all the great work Evans himself did when he was in charge. Who needs Americans with their capital and proven management concepts? |
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