The latest would-be owner of the Royals to enter into 'exclusive discussions' is American financier Robert Platek, who has a long involvement in football investments around the world. But what will the deal look like ?

Platek, reportedly signed an exclusivity agreement on 24th February, but it isn’t clear at this stage if this is a private investment of an investment via MSD and other parties - or all of the above. We take a look at what previous deals tell us.

Let's start with his CV - a Rutgers graduate, 61 year old Platek is the Global Head of Credit and Portfolio Manager of the MSD Credit Opportunity Funds, Private Credit Opportunity Funds, Real Estate Credit Opportunity Funds, and Special Investments Funds and a Partner of MSD (The major investor in MSD is Michael Dell of Dell computers fame.) He joined MSD in January 2002 as Co-Manager of the Special Opportunities Portfolio and became a Partner of MSD in January 2006.

Previously, from 1995 through 2001, Platek founded Griffin Partners, L.P. and Plymouth Partners, L.P., and he was also the Hedge Fund Portfolio Manager for the Proprietary Group of Paine Webber, in each case focusing primarily on distressed and high yield bonds as well as restructured equities. From 1991 through 1994, he was a member of the High Yield Trading Group at Citicorp Securities, Chase Securities, and The Printon Kane Group. From 1986 through 1990, Mr. Platek was a financial analyst of Chase Manhattan Bank’s Debt Restructuring Group and Financial Audit Group. That’s a pretty impressive portfolio so this guy is no slouch or fly-by-night.

The bottom line for those of you not familiar with American finance is that in his day job with MSD he is an expert in raising loans for distressed companies, and historically would expect to see high interest rates paid on these loans. Southampton are paying interest at a not unreasonable rate of 9.14 per cent on their £78.8m loan. The company has in the past also lent substantial sums to hockey clubs the St Louis Blues and Dallas Stars and helped finance the purchase of Miami Marlins baseball team.

MSD made significant loans to several EFL clubs during the COVID lockdown and has effective control over clubs including Burnley, West Brom, Derby and Sunderland and Premiership Sunderland according to The Guardian. As a result, any deal may well be a challenge for the ever vigilant EFL, who, as ever, seem to want their cake and eat it. The FT reported that over the past year, MSD Partners has also lent £200m for the takeover of Burnley and The Guardian believes they therefore have effective control of the club, which would be a real problem. But loans are considered to be more arm’s length investments than making a straight equity deal, so there may be wriggle room through the ownership rules.

The simple maths underlying this deal is that the stadium and surrounding land makes such loans a no-brainer provided legacy liens can be taken care of. This is what MSD has done with Derby County’s Pride Park.

In the US, MSD has also financed the takeover of MLS side Real Salt Lake and in Europe has been involved (or is still involved) in a number of clubs. In 2019, he was part of a group linked to taking over Sunderland from Stewart Donald, but Kyril Louis-Dreyfus took over the club instead.

A keen direct investor in football, Mr Platek purchased Italian Seria A side Spezia for around £25m in 2021. He now owns Lisbon based Portuguese side Casa Pia, which sits sixth in the Primeira Liga and was involved with Danish club Soenderjyske.

Casa Pia's ground in Lisbon

As a football club owner, his outcomes have been a mix of experiences. 

While Spezia was relegated to Serie B last season, Soenderjyske faced relegation the previous year. However, Casa Pia in Portugal are performing well.

A year ago he relinquished his ownership of Danish club Soenderjyske. A venture that had lasted lasted less than two years, resulting in the club's relegation and financial problems.

Our prediction is that Platek will buy into the club (perhaps with others) whilst MSD may well take control of assets such as the stadium and training ground to give the club operating expenditure for signings etc.. Let's hope that this is finally the end of a long, tortuous period in our club's history and it isn't once more scuppered by the EFL or the current owner.

You can pick up the story with this excellent profile from The Tilehurst End.

https://thetilehurstend.sbnation.com/2025/2/26/24372557/explained-potential-reading-fc-buyer-robert-platek-royals