(Bloomberg) -- Private equity investor Steve Pagliuca is discussing a takeover of Red Star FC, a Paris-based football club whose fans have previously railed against capitalist owners, people with knowledge of the matter said.
The US businessman is in talks to acquire Red Star through his family office, PagsGroup LLC, according to the people, who asked not to be identified discussing confidential information. Red Star was bought in 2022 by 777 Partners LLC, the US investment firm whose stable of football assets is under review by advisory firm Moelis & Co.
Pagliuca already co-owns the Boston Celtics NBA team and Italian football club Atalanta BC. In a recent interview with Bloomberg TV, Pagliuca said he saw opportunities to invest in French football, where lower broadcast revenue has left clubs in need of capital.
Red Star is a small club with a big history. One of its most famous players was Rino Della Negra, a communist and resistance fighter who was executed under the Nazis in World War II. Red Star has a stand named after him, from which many hardcore fans cheer on the team.
Fan Protests
In 2022, the club’s supporters protested heavily against the takeover by Miami-based 777 and in one instance caused a game to be abandoned. Despite that rocky start, Red Star under 777 won promotion from the third-tier of French football.
Its stadium is being renovated into a modern 10,000-capacity venue, complete with executive seating. Until Red Star is able to benefit from increased matchday revenue, it is losing around €10 million ($11.1 million) a year, according to a person familiar with the matter.
Red Star drew takeover interest from Dallas-based real estate investment group Todd Interests, Bloomberg News reported in June. A deal failed to materialize.
Pagliuca, a veteran of private equity firm Bain Capital, has enjoyed recent successes as a sports team owner, with Atalanta winning the Europa League tournament in May and the Boston Celtics securing the NBA Championship the following month.
Earlier this year, Advantage Capital Holdings LLC, a major lender to 777, appointed Moelis to evaluate a range of potential options for 777’s football holdings, including possible asset sales.
Pagliuca’s deliberations are ongoing and there’s no certainty they’ll result in a deal, the people said. Representatives for PagsGroup and A-Cap declined to comment.
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