February 3 – Melbourne Victory shareholders have backed a proposal that will allow US private equity investor 777 Partners to own up to a 70% stake in the club within five years.
Last October the Miami-based firm acquired a minority stake in the Australian A-League club Melbourne Victory for $8.7 million with the option of allowing 777 Partners to take a controlling stake of 70%. The new agreement between the partners could see the Americans invest up to $30 million in one of Australia’s flagship clubs.
777 Partners have a portfolio that includes stakes in Brazil’s Vasco Da Gama, Belgium’s Standard Liege and Spain’s Sevilla, but shareholder Richard Wilson warned of the consequences of 777 Partners becoming the majority shareholder in Melbourne. Wilson was a founding director at Victory before he resigned in 2021 over the direction the club was being taken in.
“It effectively wipes the value of the shares [for up to five years],” said Wilson. “It makes it almost impossible for a shareholder to sell their shares. You could sell to somebody who’s going to walk straight into a minority position where the shares are worthless.”
“So the risk to the fans is that no matter [what the club] says about ‘this brings certainty, it brings security’ – no it doesn’t … [the investor] can walk away from it any time they like,” Wilson said.
“For the fans, there’ll be a product, there’ll be a team … but it’s just a bad deal.”
The club have endured a rough time lately. A recent audit warned of concern and in December Melbourne Victory made international headlines when fans stormed the pitch, leading to arrests as well as sanctions by Football Australia.
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