Querétaro sold for over $120 million as Liga MX clubs change hands

In Mexico, Liga MX has seen significant changes with the sale of Querétaro for over $120 million to an American investor, a move anticipated to be the first of four club sales linked to a private equity investment in the league. This sale signals a period of restructuring as the league aims to rectify cross-ownership conflicts among teams owned by the same groups. Querétaro, which has never won a title in Liga MX, was sold to Spiegel, a founder of a waste management firm, who recognized the potential of the Mexican soccer market. The need for this financial reshuffling arose from FIFA regulations that prohibit multiple teams with a common ownership from competing in international leagues. By addressing this issue, the league hopes to attract more investment and streamline operations. The anticipated changes also include a push for a centralized management of media rights to improve revenue generated from broadcasting agreements, which has proven pivotal in driving other leagues' valuations. Historical resistance from various teams, including Querétaro, previously hindered a substantial $1.25 billion investment offer from Apollo, which sought 20% of the profits from non-Mexican media rights over the next 50 years. However, the resignation of a key figure from the negotiations may pave the way for revised agreements at upcoming owner meetings. The aim for centralized media rights management could dramatically alter how Liga MX operates and generate additional revenue. Further emphasizing the potential, Querétaro's valuation stands at roughly five times its revenue, a bargain compared to MLS team valuations that average around 9.3 times revenue. As these sales proceed and investments increase, Liga MX may see an elevation in its overall competitive and financial landscape, thus improving its stature against the likes of MLS, which currently garners more viewership in the U.S. than Liga MX, despite its lower valuation multiples. The ownership transition aims to stabilize the market while optimizing financial prospects for the league's future.