The Football Factory eyes London market as multi-club model targets new capital
The Football Factory is preparing to tap public capital markets as it builds a multi-club ownership network combining football, real estate and technology, with a potential bond issue on the London Stock Exchange forming part of its next fundraising phase.
The Football Factory is exploring a London Stock Exchange bond issue as the football investment business looks to raise capital for a multi-club model built around clubs, real estate and technology.According to a report in City AM, the London-based company has raised more than £100,000 at an £8m pre-money valuation ahead of plans for a Series A funding round and potentially a bond issue in London, Dubai or both later this year.Co-founder Edoardo Giacone said: “We [will] start with a Series A, followed by either a Series B or the issue of a bond placed in London and in Dubai.”The proposed transaction would represent a debt capital markets move rather than a conventional equity flotation, but would potentially give the business access to a broader investor base as it expands its portfolio.The Football Factory says it has already secured a club near Porto in Portugal and ultimately wants to develop a multi-club network that could include an English team.Its investment strategy differs from conventional multi-club ownership by combining football assets with surrounding commercial property, technology and educational infrastructure.Giacone said: “We are not simply acquiring or building football clubs; we are building brand-new football-anchored ecosystems.“And we do that by bringing together three things that have traditionally been developed separately, which are football, real estate, and technology.”The model reflects increasing investor interest in sports assets that can generate revenue beyond traditional football operations.Rather than relying primarily on broadcasting, sponsorship, ticketing and player trading, The Football Factory intends to develop destinations incorporating stadiums alongside business, technology and other real estate assets.The company will also use its Football Citadel Operating System to manage projects, with artificial intelligence intended to support operations across the portfolio.The Football Factory expects subsequent acquisitions to be larger as it adds its second, third and fourth projects.Its longer-term strategy is to combine four projects into a single portfolio before pursuing an exit, creating an investment proposition that seeks to balance the volatility of football performance with the more stable characteristics of real estate.A London or Dubai bond issue would provide an early test of investor appetite for that model and could give The Football Factory an alternative source of growth capital as it moves beyond its initial fundraising round.