Danish Soccer Club FC Midtjylland Sell Stake in Club

August 30, 2011

Danish Club, FC Midtjylland have sold a 34% stake in the club and academy for a return of $17.3 million by Goa-based Dempo Group.

Besides 34% stake Dempo will also have presence on the board F C Midtjylland Holdings A S, the holding company for Herning and Ikast based club.

The Share Subscription Agreement shall take effect after the final approval of the shareholders of FCM Holdings A S at an Extraordinary General Meeting to be held on 15 September.

The deal is a long-term commercial and technical partnership between the parties, with Dempo investment strengthening the FCM capital base, and FCM committed to providing technical know-how to Dempo, which owns Dempo Sports Club, a first division I-League club.

The company is hoping the club can share its football expertise with an Indian club, and establish an academy in football-crazy Goa, in collaboration with Dempo.

Søren Bach, FC Midtjylland CEO, said: “It’s a historic day for FC Midtjylland and the start of a new era for the Club. The agreement enables us to add value to the continuity of our soccer team and retain our own playing talent longer. We can enhance the level of talent development, and begin truly to internationalize the Academy.”

Dempo Group chairman Shrinivas V Dempo said the agreement was aimed at raising the standard of Indian soccer.

“The investment marks the moment when intent turned into commitment. It’s kick-off time for the Dempo foray into truly international football. Our agreement is aimed at raising the playing standard of Indian soccer, and this tie-up with a first-rate European academy and team shall spur the development of the game even faster,” Dempo an avid football fan said.

Soren Bach, added: “This is how we capitalise on the football professionalism that FCM is known for. We must, among other things, help the Indians with technical support of their youth and senior players, exchange programmes for coaches and players between the two clubs and coaching and development in sport management.”

The deal has been facilitated and coordinated by the sports management company, New World Consulting, which specializes in bringing investments to sports. New World Consulting will be working closely with both FC Midtjylland and Dempo in Europe and India over the next two years to maximize the benefits to both sides from this investment.

“In fact, I see this agreement as historic also in terms of an era of commercial cooperation opening up between India and Denmark”, adds Shrinivas Dempo.

FC Midtjylland has been runner-up twice in the Danish Cup final, and finished second twice and third twice in the Superliga.