John Fisher, the owner of San Jose Earthquakes, has engaged an investment bank to facilitate the sale of his MLS franchise, according to sources familiar with the billionaire’s intentions. An official announcement is anticipated on Wednesday.
Fisher, who also owns the recently relocated MLB team, the Athletics, from Oakland, has enlisted Moelis & Co. to manage the sales process. This decision comes almost four years after Fisher had Moelis assess the sale of minority shares in his soccer team. This time, Fisher aims to sell a controlling stake in the Earthquakes, as disclosed by a source who wished to remain anonymous due to the private nature of the information.
Neither Moelis, San Jose, nor MLS provided comments on the matter.
As of January, the Earthquakes were ranked 20th in Sportico’s valuations of MLS teams, with a worth of $600 million. Fisher purchased the team for a $20 million expansion fee back in 2007. They compete in a soccer-specific venue, PayPal Park, which also serves as the home for NWSL’s Bay FC. The previous year’s attendance was the third-lowest in the league, with revenue rankings also near the bottom. Nonetheless, the club’s value is bolstered by the Bay Area’s demographics and a notable roster of billionaires.
It had been over three years since an MLS controlling interest had changed hands until Gail Miller reached a deal in April to acquire Real Salt Lake and the NWSL’s Utah Royals for approximately $600 million. Miller bought RSL from a David Blitzer-led group that had acquired the club for close to $400 million in January 2022, which was the previous MLS sale.
Similarly, the Vancouver Whitecaps are currently on the market. In December, the MLS franchise, primarily owned by Greg Kerfoot, enlisted Goldman Sachs to assist in the sale process.
MLS finds itself at a crucial juncture, with significant developments on the horizon over the next 24 months. The anticipated boost from the World Cup has already been factored into MLS team valuations, but the league now faces the challenge of converting casual sports followers into loyal fans. Additionally, MLS is considering adjusting its schedule to align with the FIFA soccer calendar, while many clubs are focused on maximizing the potential of the league’s media partnership with Apple.
Fisher is putting the Earthquakes up for sale while transitioning his MLB team to Las Vegas. The Athletics are currently playing at Sutter Health Park in Sacramento, the home ground of the Triple-A Sacramento River Cats. The team is expected to remain in California for at least two additional seasons before their new $1.75 billion stadium opens in Vegas.
Owning more than 95% of the Athletics, Fisher has enlisted Galatioto Sports Partners to assist in raising over $500 million through the sale of limited partnership stakes to fund ballpark construction. Clark County is contributing $350 million towards the project.
Forbes estimates Fisher’s net worth at $3 billion.
Last season, the Earthquakes finished at the bottom of the Western Conference, but they currently rank eighth among 15 teams midway through this season.
Image Source: John Fisher @ Instagram
