Bright Path Sports have purchased a £40% stake in Ipswich Town Football Club for £105m. Stuart Watson takes a look at the new investors.
THE ORIGINAL SALE
Marcus Evans sold his 87.5% controlling stake in Ipswich Town to newly-formed American group Gamechanger 20 Ltd in April 2021. It was widely reported that the purchase price was around £30-40m, with Evans writing off a debt of close to £100m.
The majority of the money behind Gamechanger 20 Ltd (90%) comes from ORG, which manages funds on behalf of a large US pension fund - the Arizona Public Safety Personnel Retirement System. At the time of the takeover, it was a fund worth more than $13 billion that held around $700m in cash.
The origins of the money, investments made by firefighters and police officers, has led to the club's powerful 'running towards adversity' mantra.
American trio Brett Johnson, Mark Detmer and Berke Bakay - businessmen who were involved in the start-up of US soccer outfit Phoenix Rising and dubbed 'the Three Lions' as a collective - held a 5% stake in GC20, with former owner Evans having the other 5%.
Ipswich Town PLC, the group made up of existing shareholders prior to Evans’ purchase in 2007, retained their combined 12.5% stake in the club, but were made an offer for their shares. It's unclear how many of them sold.
THE NEW INVESTMENT
Gamechanger 20 Ltd, who purchased a historic but run down club sitting mid-table in League One, said the plan was always to look for fresh investment once the team became a competitive in the top end of the Championship.
With that journey having gone quicker than anyone anticipated, the process of bringing in additional backers was sped up.
Private equity firm Bright Path Sports Partners have invested 'up to £105m' to secure a 40% stake in the club. ORG still have a controlling 50% stake. The remaining 10% is owned by the Three Lions fund, Evans and the Ipswich Town PLC.
ORG have stressed they are not taking any money out of the club as part of this ownership restructure, while it's been revealed that the Three Lions fund has 'significantly increased its investment'.
If the original purchase price was £40m for an 87.5% stake, the club's overall value has grown from an estimated £45.7m to £262.5m (that's a £216.8m jump) in the space of less than three years.
NATIVE AMERICAN MONEY
So who are Bright Path Sports Partners?
Their website states: "We are the first ever private equity and advisory firm exclusively dedicated to raising and deploying Native American capital into professional sports franchises, facilities and ancillary opportunities."
In an interview with TownTV, Jake Zahnow, Bright Path Sports' co-founder and chief financial officer, revealed this was their 'their first investment in any football asset in the world'. It's unclear at this stage what other sports teams they have invested in.
Bright Path Sports have bases in Cleveland, Ohio and Detroit, Michigan.
Here's some of the information listed on their three co-founders.
Jake Zahnow is Bright Path's chief financial officer. He brings deep experience in operations, corporate finance, family office management, private equity and mergers & acquisitions.
Phil Ciano is a founding partner of Ciano & Goldwasser, LLP – a national sports law/deal boutique. Clients include international sports agencies/certified agents in professional baseball, basketball and football (NFL). Responsible for Bright Path’s overall leadership, Phil is an Ohio licensed sports agent and an active member of the Sports Lawyers Association.
Jim Laporte managed more than 1,000 employees while overseeing the expansion of multiple Native American gaming and entertainment businesses. He sits on various boards, including the economic development arm of the Little River Band of Ottawa Indians in Michigan.
Zahnow and Ciano are to represent Bright Path Sports Partners with regards the Ipswich Town investment. Zahnow is on the new-look eight-man Gamechanger 20 Ltd board.
THE ARMENIAN OIL ENTREPRENEUR
Bright Path Sports Partners' investment is comprised of several limited partners. Sam Simon, the founder of Simon Group Holdings (SGH) and Simon Sports, is the primary funder.
His is an fascinating backstory. Simon was nine years old when his Armenian Catholic family fled persecution Iraq in 1973. It's said they were $200 in debt by the time they arrived in Michigan, USA.
In his early 20s, Simon founded Atlas Oil Company with a single delivery truck and ultimately turned it into is a $1 billion-plus-a-year wholesaler.
Simon Group Holdings was subsequently formed off the back of that success, with interests in aerospace, defence, insurance, real estate and wine listed.
Simon is keen to stress that he has never forgotten where he came from and that he places huge stock in humility and community as a result. Reflecting those values, SGH assisted with emergency fuelling in the wake of hurricanes Florence and Michael, helping to rebuild the infrastructure of Florida and the Carolinas.
One of his websites states: "More importantly than his business success, Simon and his wife, Nada, are committed to paying forward their good fortune to help others.
"In 2009, he and Nada founded the Sam & Nada Simon Foundation. The Foundation is focused on providing direct support to their local communities, including an emphasis on active-duty military personnel, veterans, local law enforcement, immigrant families, and supporting deserving youth with academic scholarships."
THE HIGH SCHOOL SOCCER COACH
In 2022, Sam Simon diversified by setting up 'Simon Sports', a sports investment firm and management group.
Early investments included the Halifax Mooseheads, a Canadian hockey club, the newly-formed West Coast Junior Hockey League (which will have teams in California, Nevada and Arizona), plus the Golf Mind & Body app.
Sam Simon has twin boys, Peter and Michael. Peter Simon is the president of Simon Sports.
Peter's profile states that he 'has had a deep love for sports since he was a little kid' and that managed his high school soccer team that won a State Championship.
The investment division of Simon Sports is said to 'identify and contribute to new sports technology, equipment, mobile applications, media and sports drinks'.
VALUES FIT
Ipswich Town fans have really taken to all involved in Gamechanger 20 Ltd for their visibility, engagement and understanding of the club's history and family values.
Ed Schwartz insists the club was able to be very selective over the new investors and vetted them to make sure that they are a good cultural fit.
"We wanted to make sure we weren't just raising money," he said. "The endeavour was to partner with great people that we could be proud of and that would give us the oxygen to continue on the same path we are on.
"We're very excited to bring these people into our family. They have asked 'how can we help the community?' That makes me realise we have the right group of investors."
HOW THE BOARDS NOW LOOK
The Gamechanger 20 Ltd board now has eight members.
Four of them represent the various investors: Ed Schwartz (ORG), Brett Johnson (Three Lions), Jake Zahnow (Bright Path Sports) and Sam Simon (Simon Sports), while the other four represent the Ipswich Town management group: Mark Ashton (chief executive officer), Tom Ball (chief financial officer), Luke Werhun (chief operating officer) and Michael O'Leary (chairman).
The Ipswich Town Football Club board now has five members: Ashton, Ball, Werhun and O'Leary, joined by Berke Bakay (Three Lions).
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