The sale of Portland Thorns FC is nearly complete. The Bhathal family, via RAJ Sports, is in the final stages of purchasing the team from Peregrine Sports, LLC, according to two sources briefed on the transaction who were not authorized to speak publicly while the deal is still in progress. While the NWSL and commissioner Jessica Berman had targeted the end of this year for the sales of both the Thorns and OL Reign, the close of this transaction is not expected until early 2024.
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Lisa Bhathal Merage is leading the transaction for RAJ Sports and will serve as the team’s representative on the NWSL Board of Governors once approved. Bhathal Merage’s brother and partner across multiple business entities, Alex Bhathal, will serve as the alternate governor. Sportico first reported that the two sides were engaged in exclusive talks last month.
The sale has not yet been voted on by the board, though sources told The Athletic that the two potential investors traveled to New York City this week at the invitation of the commissioner. They presented their bid for the Thorns at a board of governors meeting, which included “their belief in the Portland market,” according to one source. The Bhathals have committed to keeping the team in Portland with home games at Providence Park.
Final due diligence and approvals are still required, but the sources indicated that all sides expect the sale to be approved, between the Bhathals, Peregrine and the NWSL front office. The NWSL declined to comment for this story.
The Thorns have been up for sale for a year after Merritt Paulson announced his intent to sell the team — but not MLS team Portland Timbers — on Dec. 1 of last year. The Thorns were one of the main clubs underlined over the past two years in investigative reporting and multiple official investigations concerning systemic abuse across the NWSL. The Chicago Red Stars, also a focus, were purchased by an ownership group led by Laura Ricketts earlier this year for $35.5 million (an additional $25.5 million was promised for investment into the club).
Holding company Peregrine Sports, LLC controls the majority ownership stake of the Thorns and Timbers. The company also controls the lease of Providence Park from the city of Portland. That LLC is owned by Merritt Paulson (minority owner) and his father Hank Paulson (majority owner). In 2022, Arctos Sports purchased a 15% minority stake in both the Timbers and Thorns; sources could not speak to how the ongoing sale transaction would address this.
Announcement of decision to sell Portland Thorns FC. #BAONPDX
— Portland Thorns FC (@ThornsFC) December 1, 2022
There were a few main priorities for Peregrine Sports beyond the final number and keeping the team in Portland: a women-led ownership group and building a training facility for the Thorns, according to multiple sources briefed on the prospective sale.
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Berman said in September that the Thorns had multiple engaged bidders, though she did not provide an exact number. The only other publicly known bid was launched by former Nike executive Mel Strong, Sue Levin and Ann Rodriguez, among others.
“We continue to work very closely with the incumbent owners both in Portland and in Seattle to ensure that the new ownership group meets the standards and criteria for the league,” Berman said.
In Berman’s statement concerning the sale of the team, issued last December, it was clear that the league hoped to keep the Thorns in its original market. “The Thorns, its players, its dedicated fanbase and the entire Portland community have played a key role in our league’s first decade and are critically important to the future success of the NWSL,” she said.
The sources did not provide an estimate for the final number for the sale. According to Sportico, the Thorns are valued at $65 million (fourth highest in the league) and bring in $10.5 million in annual revenue (third highest). These valuations were completed before the NWSL announced its new media rights deals with ESPN/ABC, CBS, Amazon and Scripps for four years, at $60m/year. Early into the sale process, Paulson was likely hoping for at least $50 million. One year later, that number should be met — if not surpassed.
The Bhathal family has a number of investments across sports, including the Sacramento Kings since 2013. The siblings are also co-founders of an investment firm, Revitate, that focuses largely on sports, real estate and commercial brands. While the two are based in California, they have other investments in Oregon and the Portland area. One source characterized their assessment of the team as not in a start-up phase, but one of growth for both the Thorns and the NWSL.
The logistics of untangling the Thorns from the Timbers have always presented a challenge, and the Bhathals will have a short runway ahead of the start of the 2024 season. Sources confirmed to The Athletic that existing staff across Peregrine and the Portland club will support the transition to new ownership. The sporting and technical staff, including general manager Karina LeBlanc, will immediately shift to the new entity. While front office operations are expected to largely be handled by an office assembled by the Bhathals within three to six months. Other elements of the transition could extend through the 2024 season.
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That’s not surprising, considering that the Thorns will remain at Providence Park and the Bhathals will need to have a partnership with the Timbers and Peregrine moving forward. They’re also working from initial plans from Peregrine on the promised new training facility. While it’s still too early for a timeline, the Bhathals and their team have already begun evaluating options within the market. One source noted they wanted staff and player feedback before moving ahead, but the intent is to include “at least two” training fields, a training and performance center, as well as team offices.
While front office logistics and a training center are big priorities, Bhathal Merage and her team will also have a much larger project ahead: rebuilding the relationship with Portland supporters and fans, engaging with a community wary about the team’s direction under Paulson, and making new connections with potential sponsors and the community as a whole.
(Photo: Craig Mitchelldyer-USA TODAY Sports)
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