By Sabrina Lynch
- Rapper Yo Gotti invests in D.C. United Major League Soccer team with a 6% stake at a $750M valuation
- 20% of of MLS players are African American
Hip-hop artist and record executive Yo Gotti is partnering with D.C. business tycoon Eyob Joe Mamo and other executives to buy a minority stake in the Major League Soccer (MLS) team D.C. United. As a collective, this hub of investors would gain a 6% stake in the soccer organization, valuing the club at $750 million. There is speculation this is the beginning of business growth opportunities for the team, which could see Yo Gotti working hand-in-hand with United’s co-chairmen, to expand on culture, club & stadium-centric strategies leading to more lines of revenue in a league where only 20% of players are Black.
Why This Matters: Lack of club ownership in soccer by African-Americans, Latino and Asian stakeholders is acknowledged but very rarely addressed by MLS leaders at the helm. A group of diverse executives, 14 years ago, formed an alliance that broke the color barrier in a meaningful way when they purchased the operating rights to D.C United for $33 million, the largest sum in the history of the league at that time. Led by a Black real-estate developer, an Asian sports businessman and African-American basketball player. They became the league’s first Asian-American and African-American owners in MLS history. Just nine years ago, D.C United was valued at $60 million, showing the club has come leaps and bounds in establishing their path to profitability.
Yo Gotti is the second Black celebrity to buy into D.C United, following in the footsteps of NFL player Mark Ingram who invested in the club at a $710 million valuation back in June. The team is the latest recipient of a celebrity investment in an MLS club, signaling the value of U.S soccer teams is steadily on the rise. This month alone, real-estate developer Ted Segal bought the Houston Dynamo and NWSL Dash for $400 million, joining the ranks of Kevin Durant, Patrick Mahomes and Will Ferrell who also directed their dollars into acquiring stakes in competitive soccer clubs.
Situational Awareness: It goes without question that more diverse leadership is needed in the soccer industry, inclusive of club ownership, fan events and stadium offerings. By leveraging his music empire, Collective Music Group, he could elevate the soccer experience by turning the D.C. United team into a premier entertainment and sports destination. Yo Gotti would have ownership of around 1% of the team, although precise details of the agreement remain hush hush.
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