Sunderland confirmed the sale of a majority stake in their women’s team to US multi-ownership group Bay Collective earlier this week
Earlier this week, Sunderland became the latest Premier League club to sell their women's team.
Though the deal still needs regulatory approval, an agreement between the club and Bay Collective which will see the US ownership group assume a majority shareholding in the club represents the start of a new chapter for one of the UK's most historic clubs. The dynamics of this deal, and the reasons behind it, are nevertheless very different to others we have seen in the top tier over the past couple of years.
In those cases the deal has essentially been an internal reorganisation, with the women's team sold to a company associated with the club's ownership in order to secure a financial boost capable of staving off the threat of infringing PSR rules. On a day-to-day basis, nothing actually changes. Whether a good idea or not only time will tell, but Sunderland's agreement with Bay Collective has fundamentally different motivations. If the deal is approved and completed before the end of July, as seems likely, then it will undoubtedly lead to an FFP benefit in the current cycle for Sunderland. The reality, though, is that the sales of Jobe Bellingham and Tommy Watson last summer and the boost from Premier League revenues this season meant they were never at serious risk of breaking the rules. Put simply, they didn't need to do this. The squad cost ratio rules that come into force this summer are expected to close this loophole anyway, preventing the sale of club assets as counting towards revenue. So even if the deal goes through in the next accounting period, there's no benefit to Sunderland in terms of what they can spend on their men's team.
There is of course a clear financial benefit to the club's ownership, who will see an injection of funds into the club to help their running of it in the short and medium term. Crucially, it also shifts the onus both financially and strategically for the day-to-day running of Sunderland Women to Bay Collective. While this clearly brings risk, it could also bring real opportunity.
Why Bay Collective takeover could be a huge moment for Sunderland Women
To the credit of the club's ownership, in the aftermath of their takeover they supported the bid to win promotion back to the second tier, going some way to undoing the damage brought on by the enforced double relegation in 2018. Since then, the club has steadily moved towards a fully professional operation that has also seen the team better integrated into the overall operation behind the scenes.
There is nevertheless little doubt that the club have stagnated of late, with Sunderland increasingly starting to lag behind their rivals at WSL 2 level. Though they come close to an unlikely promotion in 2023/24 promotion, the gap between their budget and those at the top of the division has grown significantly over the last few years. They finished seventh last season and currently sit eighth in this year's table, and in truth that is broadly seen as a fair reflection of what they are investing in their playing squad. Mel Reay has done superbly to keep the group competitive and specifically, to bring so many talented youngsters through the academy pathway. There is a genuine platform to build from as a result but under the current ownership there appeared to be little real desire to plug the kind of losses that would have made first a serious promotion tilt and then a genuine attempt at Super League survival possible.
Bay Collective will fundamentally be different. Backed by US investment group Sixth Street, their purchase is a sign that they believe women's football will grow significantly in the years ahead. While in their initial communications they have pledged to grow the club sensibly and sustainability, they have also pledged to invest in the club's infrastructure and improvements to the squad are inevitable. It should be of real excitement to Sunderland's players, staff and fans that the new ownership group now has a vested, long-term interest in ensuring the club becomes a Super League operation. To do so they will need to bring dedicated, day-to-day expertise and place the women's team at the forefront of everything they do on a daily basis.
Is there risk with this deal? Undoubtedly. Though Bristol City sold their women's team in a very similar manner last year, this kind of arrangement has rarely been tried before. Will it prove practical to have two separate ownership groups sharing the same facilities and what happens if there is a disagreement between the two on any manner of subjects? The devil will be in the detail and it remains to be seen how successful Bay Collective will be in their running of the club, though CEO and former FA technical director Kay Cossington is a hugely respected operator in the game. Though there may be some inevitable sadness that Sunderland do not feel they can grow their women's team in house, it could also prove to be the fresh start that the club probably need. This deal is an attempt to find the best of both worlds: Using the club's history and profile to drive growth while placing the daily management in the hands of motivated, dedicated experts.
This development does not guarantee success in the coming years for Sunderland Women, but it's hard not to argue that it also significantly improves its prospects of reaching the top tier and competing there in the long term. Even if there are some fair reservations, this feels like an exciting step forward for the team.
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