Agnelli Family Denies Tether’s $1 Billion Offer for Juventus Stake

The Agnelli family has firmly turned down Tether’s all-cash bid to take majority control of Juventus Football Club. The proposal of €1 billion ($1.17 billion), made just a day prior, was rejected due to the family's long-standing commitment and pride in the club's legacy.

Key Takeaways

The Agnelli family rejected Tether's €1 billion bid for Juventus.
Exor, the family's holding company, plans to keep its 65.4% stake.
Juventus shares saw a significant increase following the rejection.
Tether’s CEO emphasized his personal connection to the club in the bid.
Interest from private equity in European football clubs is growing.
Tether is aggressively expanding into various sectors beyond cryptocurrencies.

Agnelli Family Rejects Tether's $1 Billion Bid for Juventus Stake

Agnelli Family Stays True to Juventus Legacy

The Agnelli family has unanimously declined Tether's cash offer to gain controlling interest in Juventus Football Club. Tether's pledge of €1 billion ($1.17 billion) was rejected just one day after it was made public. According to Dow Jones Newswires, Exor, the family's holding entity, announced on Saturday its decision to maintain its 65.4% stake in the club, putting an end to what could have been one of the most ambitious takeover attempts in European football this year.

The proposal from Tether, submitted on Friday, aimed to acquire Exor’s controlling interest, followed by a public tender for the remaining shares at an undisclosed price. Following the rejection, Juventus shares saw a 12% rise on Monday morning, climbing to their highest level since November 25, indicating a 21% premium compared to Friday’s closing price, despite the family’s refusal to negotiate the offer further.

Commitment to Heritage Over Crypto Ambitions

Exor’s board conveyed that Juventus holds deep value beyond mere commercial interests for the Agnelli family, who have been owners of the club for over a century. "Juventus is a storied and successful club, of which Exor and the Agnelli family are the stable and proud shareholders for over a century, and they remain fully committed to the club," stated the holding company, effectively ruling out any further discussions regarding the sale.

Tether’s CEO, Paolo Ardoino, described the rejected proposal as a long-term investment rooted in his personal ties to the famous Serie A club. "As a boy, I learned what commitment, resilience, and responsibility meant by watching Juventus face success and adversity with dignity," Ardoino remarked, stating that Tether was prepared to provide stable capital to support the club’s future.

Though recently rejected, Tether still holds considerable influence within Juventus, having quietly acquired an initial stake earlier this year and increasing its holdings to over 10% by April. In October, Tether successfully placed Zachary Lyons and Francesco Garino on the board, with the latter's appointment confirmed by shareholders last month.

Private Equity Shifts in European Football

Tether's rejected bid comes at a time of rising private equity interest in European football, as investment firms look to tune into lucrative media rights and player transactions. Apollo Global Management recently gained majority control of Atletico de Madrid, while RedBird Capital purchased AC Milan for $1.2 billion in 2022, and Oaktree Capital took over FC Inter Milan last year.

Financial backing is flooding into European clubs as they capitalize on increasing revenues from international broadcasts and player transfers. With a valuation of around €944 million, Juventus is particularly appealing due to its status as Italy's most successful club and its vast global fan base.

However, partnerships with crypto firms have not gone without scrutiny. FC Barcelona faced backlash after entering into a sponsorship with Zero-Knowledge Proof, a blockchain startup with a limited online presence, leading the club to clarify its lack of connection to ZKP's FCB token.

As sports organizations increasingly tap into crypto, notable instances include Paris Saint-Germain adopting a Bitcoin treasury strategy and football accounting for 43% of crypto sponsorships last season, reflecting a 64% growth year-over-year.

Tether’s Diverse Expansion Strategy

Tether's growth strategy has been significantly expanding across multiple sectors, on track to generate around $15 billion this year from its $183.8 billion USDT market cap. Recent discussions indicate Tether may seek $20 billion for a 3% stake, aiming for a valuation approaching $500 billion, which would be comparable to Mastercard and surpass organizations like Netflix and Samsung.

Additionally, Tether has invested around $1.5 billion in commodity trade lending across various markets, such as oil and agriculture, while increasing its gold reserves to over $12 billion. This diversification reinforces Tether's strategy of expanding beyond its core operations in stablecoins.