In my previous analysis, Why Is Private Equity Bullish on European Football?, I looked at why investors have become increasingly interested in European football. The sport already has the audience, global reach, and generational loyalty that most businesses spend decades trying to build. The opportunity for investors is finding better ways to monetize what is already there.

That explains why the money is coming in, but it leaves another important question unanswered: where is that money actually going? Buying a stake in a club or league is only the beginning of the investment. Once firms such as RedBird Capital Partners and CVC Capital Partners enter the sport, they still have to decide where additional capital can create the most value.

Looking at how capital has actually been deployed across European football, some clear strategies are beginning to emerge. Stadiums and physical infrastructure have become a major focus, while investors are also putting money toward commercial operations, technology, and the squads themselves. Outside of private equity, clubs such as Brighton also show another approach, where better data and player development can turn the transfer market itself into an opportunity to identify undervalued assets.

RedBird Capital Partners acquired AC Milan in 2022 for approximately €1.2 billion, taking control of one of the largest football brands in the world. Since the purchase, RedBird has continued to invest heavily in the sporting side of the club. Milan reportedly spent €131 million in the 2023/24 transfer market, €121 million in 2024/25, and €162 million in 2025/26, while Gerry Cardinale has stated that the club's improved cash generation is being reinvested back into the team.

However, one of RedBird's largest long-term priorities has been AC Milan's stadium situation. Milan currently plays at San Siro, which is a shared stadium with city rivals Inter Milan, meaning one of the largest football clubs in the world does not have complete control over its own stadium. RedBird has explored significant investment in changing that, including committing capital toward the proposed San Donato stadium project and working toward a long-term solution that gives Milan greater control over the revenue generated around matchday by exploring the possibility of expanding seating, using more elaborate sponsorship activation to increase sponsorship value, and benefiting from the real estate appreciation that comes from ownership.

It's important to highlight the importance of stadium control. Modern stadiums can generate revenue through premium hospitality, restaurants, retail, sponsorship inventory, concerts, corporate events, and other experiences throughout the year. This is especially important for European clubs because many still play in older stadiums or facilities they do not fully own, which ultimately limits how much money they can generate.

If the investment plan is successful, revenue generated through hospitality, events, sponsorships, and other stadium activity creates additional money that can be reinvested into the squad, instead of relying on an owner to continuously inject capital to buy players.

CVC Capital Partners took a different approach to investing in European football. Rather than acquiring one individual club, CVC committed approximately €1.994 billion through the LaLiga Impulso project in exchange for an 8.25% interest in a company holding certain LaLiga broadcast and sponsorship rights over a 50-year period.

The most interesting part of the deal is not only how much CVC invested, but how participating clubs are allowed to use the money. Approximately 70% of the funds are required to go toward long-term investments, including stadiums, training facilities, technology, digital development, communications, commercial operations, international expansion, branding, and organizational improvements. Another 15% can be used for debt reduction, while only 15% can be allocated toward strengthening squads through transfers and wages.

Just to highlight the significant impact of the 70% going towards physical infrastructure. Since the CVC investment began in 2021, stadium infrastructure has been a major focus. By 2025, hospitality seating had reached 4.1% of LaLiga stadium capacity, up from 3.1% two years earlier. With CVC’s investment tied to LaLiga for 50 years, these improvements are designed to generate value over the long term. With the addition of premium seating, overall hospitality, and sponsorship areas, it will unlock clubs to be able to generate more revenue from the same supporters already attending matches.

P.S. — Estimated potential revenue: Before the CVC investment, LaLiga attendance was roughly 10.2 million fans annually. Post-CVC, attendance has reached roughly 11.2 million. At an average ticket price of around €53, that additional attendance represents roughly €53 million in potential annual ticket revenue across the league if clubs consistently fill those additional seats (Considering no price increased through general rise in all ticket prices nor the addition of better hospitality increases that are higher ticket than €53).

Clubs have also been given capital to improve their digital operations, international presence, branding, and commercial departments. These areas become increasingly important when clubs are trying to monetize supporters who may never physically attend a match in Spain. A better digital relationship with those supporters creates more opportunities to sell merchandise, memberships, sponsorships, content, and other products directly around the club.

This investment strategy shows clearly where the priorities are...

Only a relatively small portion of the nearly €2 billion investment can be used directly on players, while the majority is being used to improve the team's overall business structure.

Not every strategy for allocating capital in European football revolves around stadiums or commercial infrastructure. Brighton & Hove Albion is not owned by a private equity firm, but the club provides one of the clearest examples of another way ownership can create value: using data, recruitment, and player development to identify talent before the rest of the market fully recognizes it.

Brighton's recruitment strategy has focused heavily on younger players who have shown significant ability but have limited experience in Europe's biggest leagues. The club searches across a wide range of markets for players who fit its style of football, can be acquired at relatively low prices, and still have significant room to develop. Rather than signing players only for what they can provide immediately, Brighton has repeatedly acquired players based on what they could become.

Moisés Caicedo is the clearest example. Brighton signed the Ecuadorian midfielder from Independiente del Valle for approximately £4 million in 2021. After developing at Brighton and receiving significant Premier League minutes, Caicedo was eventually sold to Chelsea in a deal worth up to £115 million. Caicedo was already an extremely talented prospect; however, Brighton's advantage was identifying that talent and being willing to invest before the rest of the market valued him at the same level.

The same strategy has produced players such as Alexis Mac Allister, Kaoru Mitoma, and Marc Cucurella. Brighton has also created an environment where younger players can actually play. During the 2022/23 Premier League season, Caicedo and Mac Allister accumulated significant minutes alongside several other U-23 players, giving developing talent the opportunity to increase both its sporting contribution and market value.

The strategy is not dependent on every signing working. Analytics FC described the approach as one that attempts to reduce the probability of failure across the club's recruitment portfolio while consistently searching for talent in markets that may receive less attention from larger clubs.

Brighton's model shows how information itself can influence capital allocation in football. A club with better information does not necessarily need to outspend competitors. If a club can consistently identify a £5 million player before the market recognizes him as a £50 million player, that's where intelligent capital allocation can generate interesting returns.

Private equity is showing where it sees value in European football. RedBird and CVC have focused heavily on stadiums, infrastructure, and commercial growth, while Brighton shows how better data and recruitment can create value through players themselves.

The strategies are different, but at the end of the day, they exploit areas where football assets are undervalued and invest to unlock returns.

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