What's Happening?
Nationwide Mutual Insurance has agreed to purchase a 37% stake in the ownership of the Columbus Crew, a Major League Soccer team, at a valuation of $900 million. The deal involves buying 30% of the stake from Haslem Sports Group and 7% from the Edwards
family. The Haslems, who also own the Cleveland Browns, will remain the majority owners with 40% of the ownership stake even after selling part of their share. The transaction is pending approval from MLS' board of governors and is expected to be finalized in the coming weeks. This acquisition follows the Haslems' recent award of an expansion NWSL team in Columbus for a record $205 million fee.
Why It's Important?
The acquisition by Nationwide Mutual Insurance signifies a substantial investment in the Columbus Crew, reflecting the growing financial interest and valuation of MLS teams. This move could enhance the Crew's financial stability and provide resources for further development and competitiveness in the league. The deal also highlights the increasing value of sports franchises, as evidenced by the higher valuation compared to recent MLS franchise sales. For Nationwide, this investment diversifies its portfolio and strengthens its presence in the sports industry, potentially leading to increased brand visibility and engagement with soccer fans.
What's Next?
The next steps involve the approval of the deal by MLS' board of governors, which is crucial for the transaction to proceed. Once finalized, Nationwide and the Edwards family will join the NWSL ownership group, potentially influencing the strategic direction of both the Crew and the new NWSL team. Stakeholders, including fans and local businesses, may anticipate changes in team management and operations, as well as potential enhancements to the team's facilities and community engagement initiatives.
