By Dominique Jacquet

It is understandable that LVMH is not involved in the acquisition, as the brand’s positioning is likely to introduce some confusion. Certainly, LVMH is mobilized, but financially and indirectly. The Arnault family, which owns more than 48% of LVMH’s shares, will receive a dividend of more than €3 billion for the 2023 results. After deduction of taxes and current expenses, there are enough funds left to make an investment estimated at between 60 and 100 million Euros depending on the club’s sporting results (concretely, whether or not to move up to the Premier League).

On the other hand, the L Catterton fund, 60% owned by the family, could have been used as an investment vehicle. Focused on luxury, fashion and consumption, the fund is absent from the sports world, whose economic equation is quite distant. Some are talking about potential synergies, but it is difficult to see the Paris FC players wearing Birkenstocks, at least on the stadium…

It is interesting to observe the communication strategy of the Arnault family, which runs a global group, but wants to show its French involvement. The immediate announcement of significant support for the renovation of Notre-Dame Cathedral was a notable expression of this. Recently, the LVMH group’s involvement in the sponsorship of the Paris Games (financial contribution, highly visible presence at the opening ceremony, medal making, etc.) has been very noticed. For football fans, the presence of a second major club in the capital is a dream: one thinks of the Manchester City vs. United duels! The image of the family can only benefit from the rise of Paris FC.

From a slightly more financial point of view, it is good to point out that the big European clubs are valued between 4 and 6 billion Euros, which can be both an economic target for the club and a nice multiple for its investor. The global popularity of this sport makes this project a very promising axis, making it possible to reach fans willing to pay a lot of money to admire the heroes of football or, at the very least, to belong to a community. Great target of potential consumers, male and female, access to the media, national pride, etc. many ingredients that militate in favor of the takeover of Paris FC.

And then, one day, we may see the shop of Paris FC’s Japanese supporters in Ginza Six, the 47,000m2 building owned by L Catterton in the luxury district of Tokyo, its equivalent of the Champs-Elysées. Now that’s a synergy!