Bayern Munich, Germany’s top football club, held talks this year with EQT about selling a minority stake to the private equity firm, in a deal that would have reignited a heated national debate over the merits of private equity investment in football.
Negotiations collapsed when Bayern’s chief financial officer, Michael Diederich, an EQT contact at the club, left in the summer to become co-head of Deutsche Bank’s corporate banking division, according to three people familiar with the matter.
German fans have historically been highly critical of foreign investment in the sport, with widespread protests leading the country’s football league last year to cancel talks over a possible private equity investment.
With some exceptions, clubs in Germany are subject to the “50+1” ownership rule, which stipulates that members must hold the majority of voting rights, effectively preventing commercial entities from taking control.
The rise of RB Leipzig, a German club whose growth was financed by energy drink maker Red Bull, has led to it being labeled a “plastic club” by critics.
Bayern Munich’s membership association owns 75% of the club, with the remaining shares divided equally between three German companies: Adidas, Audi and Allianz.
The club’s statute stipulates that members must hold a 70% stake in the subsidiary that manages the operations of their football teams, leaving them with a 5% stake that they could potentially sell to an external partner. Bayern Munich also has teams in other sports, including basketball and handball.
The Football Benchmark consultancy estimates Bayern Munich’s business value at €4.28 billion (R$26.5 billion), behind only Real Madrid, Manchester City, Manchester United and Barcelona.
People familiar with the matter told the Financial Times there was no indication that Adidas, Audi or Allianz wanted to reduce their stake.
In recent years, private capital has flowed into football clubs and leagues in other European countries. Last month, American group Apollo agreed to buy a majority stake in Atletico Madrid in a deal valuing Spain’s third-largest football club at more than €2 billion (R$12.4 billion).
Clearlake Capital acquired Chelsea for £2.5 billion in 2022, while RedBird Capital took over Milan in a €1.2 billion deal in the same year.
Real Madrid president Florentino Pérez last month outlined plans to sell a minority stake to an outside investor for the first time, as the Spanish club battles the financial might of English Premier League clubs.
Bayern Munich, which has more than 432,000 members, has been Germany’s most successful club for decades, winning 12 of the last 13 Bundesliga titles and regularly reaching the final stages of the Champions League. The club, which signed England captain Harry Kane in 2023, is in the top five in the world for annual revenue.
Talks with Bayern Munich demonstrate EQT’s growing interest in sports as Europe’s biggest private equity firm looks for deals that could help it attract retail investors.
EQT’s only notable move into the sport to date is a US$25 million (R$132.8 billion) investment by its venture capital arm in Baller League, a six-player football competition that partners with influencers and streamers.
The Swedish company, which manages almost €270 billion (R$1.6 trillion) in assets, recently held discussions about a partnership with Arctos, an investor specializing in sports. It is unclear which of EQT’s funds would have invested in Bayern Munich if the talks had led to a deal.
EQT, Bayern Munich and Diederich declined to comment.
