OL Groupe announced in a press release early Monday morning that it has reached an agreement with a group that includes the Seattle Sounders and global investment firm Carlyle Group for the sale of Seattle Reign FC.
The sale price is $58 million, according to the press release. The transaction is expected to close shortly, pending approval by the NWSL and MLS Board of Governors.
The deal, when officially announced, will mark a significant increase from the Reign’s prior sale in December 2019, when OL Groupe purchased an 89.5% ownership stake in the Reign at a value of $3.51 million. Former Reign majority owners Teresa Predmore and Bill Predmore maintained a 7.5% stake in the club, while Tony Parker purchased a 3% stake. OL Groupe’s annual report for the 2022-23 fiscal year notes that the Predmores sold that 7.5% stake for $2 million, giving OL Groupe 97% ownership.
Jeremiah Oshan
OL Groupe will sell its entire 97% stake. It’s unclear what will happen to Tony Parker’s share.
Reached for comment, the Sounders provided this statement: “Seattle Sounders FC is aware of the reports from France regarding the proposed Purchase and Sale Agreement for Seattle Reign FC. While our organization is extremely excited about the future of women’s soccer in our community, this matter is ongoing, and we are unable to provide further comment at this time. We respect the process that is being led by the National Women’s Soccer League, and we hope to be able to share further information in the coming days.”
The deal comes at a time of rapidly increasing NWSL valuations. In January, the Portland Thorns finalized their sale to RAJ Sports for $63 million, then a league record. The Chicago Red Stars sold for $36 million in September, with an additional $25.5 million investment in the club by the new owners. Meanwhile, Bay FC paid a $53 million expansion fee to join the league this year, and just last week, Sportico reported that the San Diego Wave was being sold for $113 million.
While the deal has not been officially announced by the league, OL Groupe’s press release seems to indicate that it is truly close to completion.
The exact structure of the new ownership is not yet known, but it is believed that the Sounders will effectively assume much of the day-to-day operations and will likely combine some of the back-office staff while keeping sporting operations separate. Carlyle Group have been reported as providing a significant portion of the funding.
With the Sounders’ recent move to a new training facility at Longacres in Renton, the Reign have taken over their space at Starfire Sports Complex in Tukwila. That arrangement is expected to remain in place for the foreseeable future.
