Billionaire Patrick Soon-Shiong in negotiations to buy D.C. United of Major League Soccer
Los Angeles billionaire Patrick Soon-Shiong is in the final stages of completing a deal to become a major stakeholder in D.C. United, according to a source close to the negotiations who declined to speak on the record because an agreement hasn’t been signed.
Soon-Shiong, who owns a small stake in the Lakers, is leading a group to buy about a 78% stake in the Major League Soccer club currently held by majority owner Erick Thohir, an Indonesian businessman who has been the team’s general partner since 2012.
The investment group also includes team Chief Executive Jason Levien.
Under the terms of agreement Soon-Shiong would hold the majority of the group’s stake. A deal, which would value D.C. United at about $500 million, is expected to be completed by the end of the month.
The MLS Board of Governors is scheduled to meet Tuesday in Los Angeles, where the sale is expected to be discussed.
Last season Forbes estimated D.C. United’s value at $230 million, listing 2016 revenue at $25 million with an operating loss of $1 million. Forbes listed the Galaxy as the league’s most valuable club with an estimated value of $315 million.
However, D.C. United’s value figures to spike when Audi Field, its new $195-million soccer-specific stadium, opens this year.
The club this week released a statement in which it said it has been “evaluating different strategic opportunities to add to our ownership” and did not want to comment “on any specific potential investment.”
In addition, the Washington Post reported that the Federal Trade Commission, in a notice published Friday, listed an acquisition involving Soon-Shiong and Thohir that also included Black Eagle Investment Group, which is run by Levien. No other details were given, the Post said, but such listings are required by law when a potentially lucrative deal is being discussed and do not necessarily mean a transaction is imminent.
Soon-Shiong, 65, recently reached a deal with tronc to purchase the Los Angeles Times and the San Diego Union-Tribune.
D.C. United, one of the 10 charter clubs that founded MLS in 1996, was also the league’s first dynasty, winning three of the first four MLS Cups. But it has recently fallen on hard times, losing a league-worst 20 games in 2017. It is winless in five games this season.
Follow Kevin Baxter on Twitter @kbaxter11
Follow Andrea Chang on Twitter @byandreachang
Get our high school sports newsletter
Prep Rally is devoted to the SoCal high school sports experience, bringing you scores, stories and a behind-the-scenes look at what makes prep sports so popular.
You may occasionally receive promotional content from the Los Angeles Times.
