Durant’s PSG interest explained: Why did he buy in? Does he have a say in it?

August 14, 2024

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Durant’s PSG interest explained: Why did he buy in? Does he have a say in it?

Kevin Durant is the latest American athlete to invest in European football.

On Monday, The Athletics reported that the two-time NBA champion and Phoenix Suns forward had purchased a minority stake in French soccer giant Paris Saint-Germain. According to sources with knowledge of the deal — who, like all others contacted for this article, spoke on the condition of anonymity to protect relationships — Durant’s investment firm Boardroom purchased an equity stake through a separate financial vehicle set up by Arctos Sports Partners, which has invested in PSG.

Durant was in Paris for the Olympics, where he won his fourth gold medal. Last week, during the competition, Durant and Rich Kleiman, co-founder of Boardroom and manager of Durant, visited PSG’s new training center in Poissy, west of Paris. They met with PSG president Nasser Al-Khelaifi. According to sources with knowledge of his visit, the two parties “presented” each other about the agreement.

What does this agreement entail and how was it concluded? The Athletics has the overview.

First of all, who are PSG and what is Boardroom?

Paris Saint-Germain is one of the leading football clubs in both the men’s and women’s game in Europe. Their men’s team is the most successful football club in France. They have won 12 national league titles, more than any other team, and are the reigning champions.

PSG became a dominant force after Qatar Sports Investments, a state-backed investment vehicle from Qatar, bought the club for €70 million in 2011. Since then, they have won 32 trophies and signed international star players including Lionel Messi, Kylian Mbappe, Neymar and Zlatan Ibrahimovic. They have also developed an increasingly prominent global brand, with more than 200 million followers on social media. They are set to receive the third-highest commercial revenue of any football club in Europe in the 2022-23 season, according to Deloitte’s Football Money League. PSG also has multiple sports teams beyond men’s and women’s football, including handball, judo and esports.

PSG previously had Messi, Neymar and Mbappe on their books (Franck Fife/AFP via Getty Images)

Boardroom, meanwhile, is a sports, media and entertainment brand co-founded by Durant and Kleiman. It is the sister company of Boardroom Sports Holding LLC, which has investments in several emerging sports teams and leagues, including PSG.

Durant needs little introduction. The 35-year-old is considered one of the greatest basketball players of all time. He is a 14-time All-Star and his gold medal collection is now a record for men’s basketball. He is also the leading scorer for the U.S. in both the men’s and women’s Olympic competition. He will enter his 17th NBA season with the Phoenix Suns this year.

Does Durant have a say at PSG?

Durant has become a minority shareholder through Boardroom Sports Holdings LLC, but he has not invested directly. He has bought a stake in the Arctos Sports Partners fund, which has invested in PSG. Arctos, a US private investment company, bought a 12.5 percent stake in Paris Saint-Germain last year, which was valued at €4.25 billion (£3.64 billion, $4.58 billion) at the time.

The size of Durant’s stake was not disclosed, but sources close to the deal have said The Athletics that, in US dollars, it is “several million.”

This isn’t Durant’s first time investing in sports. In 2020, he bought a five percent ownership stake in MLS team Philadelphia Union, with an option to buy an additional five percent, while becoming a minority owner of the NY/NJ Gotham National Women’s Soccer League franchise in 2022. He also co-owns the Brooklyn Aces in Major League Pickleball, among several other investments with his manager Kleiman, who co-founded Boardroom, a sister company to Durant’s investment arm Thirty Five Ventures.

Why did he invest in PSG?

This is the start of what is expected to be a broader partnership between Boardroom and PSG, covering areas such as “content and strategy.” PSG are known to be exploring various partnerships to enhance and develop their brand, and are looking to grow their status and footprint in the United States, with the 2025 Club World Cup and 2026 World Cup both on the horizon.

PSG sources say they hope Durant will bring a multi-sport, American market perspective to the club and its brand. The club sees this as the beginning of a relationship that has now been formalized financially. Through Arctos, they expect Durant to have a voice in the development of the business, and the club wants to extend that influence beyond majority shareholder QSI.

Durant won Olympic gold in Paris (Paul Ellis/AFP via Getty Images)

According to a source familiar with Durant’s visit to PSG, the NBA star emphasized the appeal of the club and its brand, noting the club’s unique positioning on culture and community, while also expressing his commitment to the future of women’s sports.

What did both sides say?

PSG have not formally commented on the matter since news of Durant’s investment broke, but after Durant visited the club’s €300 million training centre last week, where the NBA star met with first-team men’s head coach Luis Enrique and sporting advisor Luis Campos, among others, club president Nasser Al-Khelaifi said: “It was an honour to welcome Kevin Durant to the campus today and to witness his passion for Paris Saint-Germain and his recognition of the excellent sporting facilities at our new PSG Campus training centre.

“Kevin is an inspiring athlete, investor and all-round role model, both on and off the pitch. We are incredibly proud of his connection to the Paris Saint-Germain family as we share the same values and vision. We look forward to strengthening our ties and working with Kevin and Boardroom to bring the best in sports and entertainment to fans around the world.”

In a statement shared on social media on Monday, Boardroom said: “Earlier this month, Paris Saint-Germain President Nasser Al-Khelaifi welcomed Durant and his long-standing business partner, entrepreneur Rich Kleiman, to the Paris Saint-Germain campus to kick off the partnership with a tour of the club’s state-of-the-art training facility and academy. They witnessed how the club’s values of innovation and excellence are embodied in this new environment, where Paris Saint-Germain nurtures the stars of tomorrow.

“They have also spent time with Paris Saint-Germain’s professional football teams, with a specific focus on the women’s and youth academy teams – areas that interest him strongly from both a sporting and investment perspective. Durant and Kleiman’s sports and entertainment media network Boardroom will work with Paris Saint-Germain to develop a multi-faceted partnership that encompasses both content and strategy.”

Arctos has been asked for comment.

Is he the first American star to invest in football?

Durant follows a well-trodden path of American sports stars and other famous faces investing in soccer clubs in Europe. LeBron James became a minority shareholder at Liverpool in 2011, but others have followed since. Last year, former NFL star JJ Watt and his wife Kealia, a former USWNT player, bought a stake in England’s Burnley, Tom Brady did the same at Birmingham City, while Leeds United can count Atlanta Hawks forward/center Larry Nance Jr — and Russell Crowe, Dustin Hoffman, Will Ferrell, Jordan Spieth and Russell Westbrook — as part-owners.

“Many are attracted to the passion that fans have for soccer here – I don’t think they see the same passion for teams in the US,” said Andrew Umbers, partner at Oakwell Sports Advisory, a London-based strategic and financial advisor to the sports sector. The Athletics last month.

JJ Watt owns a stake in Burnley (James Gill/Getty Images)

“It’s also an opportunity to grow their personal brands outside of the US and the same goes the other way around.

“If you can bring in an American superstar like LeBron James or Tom Brady, who can give you a huge reach in the US for a small amount of equity, why wouldn’t you do it?”

GALLING DEEPER

Why do American athletes buy stakes in English football clubs?

Is this PSG’s first contact with basketball?

PSG is currently in a partnership with Michael Jordan’s Jordan brand, a deal that is now in its sixth year. That partnership has proven to be transformative for the club and its brand, allowing it to expand globally. “It’s the single most talked about thing, everywhere we go in the world,” PSG Chief Revenue Officer Marc Armstrong told The Athletics in december.

Basketball is one of the most played sports in France. Although PSG does not have a basketball team, sources have not ruled out the possibility of creating a PSG basketball team in the future.

A major focus for the club in the short term will be the construction of their new stadium, which is expected to be a multi-sport and multi-purpose venue. PSG’s revenues are limited by poor TV rights deals in France and the limited capacity of their ground, the Parc des Princes. The stadium is seen as a way for the club to grow further, which is a major focus of new investors Arctos.