Foreign investors bet on football in Türkiye: The curious sale of Göztepe S.K.

Göztepe players line up for a match with Bandırmaspor in August. (Photos: Göztepe SK)

After speculation this spring that Russian oligarch Roman Abramovich would purchase one of Türkiye's most historic football clubs, Göztepe Spor Kulübü, a new European firm bought a 70 percent stake in the club this August for an undisclosed fee.

With the acquisition, the London-based investment firm Sport Republic became the first ever foreign investor in football in Türkiye, raising expectations the new owners might shake up an industry plagued by years of financial problems.

Bankrolled by Dragan Šolak, a billionaire from Serbia, and led by Rasmus Ankersen, a former football player from Denmark, and co-founder Henrik Kraft, Sport Republic's move has drawn high interest in Göztepe's native city of İzmir, where the club enjoys support from one of Türkiye's most devoted football fan bases despite having finished 19 out of 20 in the Süper Lig last season, resulting in the team's relegation, meaning it was downgraded to a lower division.

Fans still recall Göztepe's top-tier days in the 1960s and 1970s, when the team became Türkiye's first to compete in a European semi-final, and today many hope new ownership will rekindle the club's old glory.

While Ankersen and company will likely face many challenges, from political meddling to broader economic turbulence and more, if successful, his firm's entrance into football in Türkiye could mark the beginning of a foreign investor era for the Süper Lig.

Political football

As in most nations, football in Türkiye has long been a playground for politicians, and this did not change under President Recep Tayyip Erdoğan, who has pursued a policy of 'cultural hegemony' on the pitch with aims to limit dissent in all public spheres.

Over the last decade, Ankara has made its presence increasingly felt in the Turkish Football Federation (TFF) as well as broadcasters and football clubs. A prominent example is the İstanbul Metropolitan Municipality's 2014 sale of Medipol Başakşehir to private investors.

The club was subsequently renamed to Başakşehir and moved to a new stadium in the İstanbul district of the same name – which is also a stronghold for Erdoğan's Justice and Development Party (AKP). To mark the occasion, then-PM Erdoğan took the field and played in the club's orange uniform, scoring three goals.

When Başakşehir won the Süper Lig title in 2020, critics pointed to government support as a main reason for their success. Though observers also noted the team's effective manager proved essential for their rise along with smart money allocation toward clutch players, as opposed to the tendency towards expensive star players seen in the Big Three football clubs.

In another case, the 2019 sacking of Trabzonspor manager Ünal Karaman became a point of contention in a long-running power struggle between Interior Minister Süleyman Soylu and then-Finance Minister Berat Albayrak.

Furthermore, Foreign Minister Mevlüt Çavuşoğlu's brother runs the Alanyaspor football team, while Health Minister Fahrettin Koca has been financially-supporting Bilal Erdoğan's favorite team, Başakşehir, with sponsorships.

Localization, localization, localization

Still, recent political meddling in football is not limited to administration. Part of the industry's finances are also controlled by the government.

The main sponsor for the Süper Lig, Spor Toto, is a government agency. Meanwhile, beIN Sports, which broadcasts sports in Türkiye and Süper Lig matches, is owned by an Erdoğan-friendly Qatari state-owned company. In addition, the electronic ticket system used by all football clubs is run by Aktif Bank under Çalık Holding – another close ally of Erdoğan.

Separately, the last two presidents of the TFF, Yıldırım Demirören and Nihat Özdemir, were also close Erdoğan allies.

With a large share of the football revenue flowing through government actors and allies, netting a profit through Göztepe may not be as easy as it appears for Ankersen's Sport Republic.

But there is still room to maneuver for Ankersen's project. Sports commentator Yusuf Kenan Çalık told Turkey recap not every method can be implemented in every country, referring to Ankersen's approach, which relies on mathematical models.

"Localization is the key," Çalık said. "It is not an easy job and it will take time. Changing habits and copying a system that was successful abroad will be difficult. Football in Denmark and England plays under certain rules and they are not as chaotic as in Türkiye."

He added, "Ankersen and his group bought a club that was relegated last year. This seems like another disadvantage."

Rasmus Ankersen, Mehmet Sepil and Henrik Kraft (left to right) announce the sale of Göztepe. Sepil remains a minority owner of the club.

Backpacker turned backslapper

Despite the uphill climb ahead, Göztepe chairperson Ankersen is not the standard sports club owner. Once a promising young football player, Ankersen suffered a serious knee injury in his first senior game, ending his sports career at age 19.

After healing and backpacking around the world, he became a coach. Ten years later, at the age 31, he is now an advisor to international businesses and athletes as well as a part-time chairman for the football club where he used to play: FC Midtjylland.

Ankersen's ideas brought FC Midtjylland three Danish Superliga titles between 2014 and 2020 and a season in the Champions League for the first time in the club's history. He simultaneously managed Brentford FC, which was promoted to the Premier League in 2021 for the first time in 74 years.

Yet despite years filled with success and high-level football experience in two European countries, the stakes remain high for Ankersen's Sport Republic in Türkiye.

Reeling from relegation

After a series of poor performances, Göztepe was relegated to Türkiye's second tier last season. This year, the club won just two games in the first seven weeks, and its new owners sacked the manager one month into the season.

"We lost our hopes to be promoted to the Süper Lig this season," Batuhan Çolak, a season ticket holder for almost 10 years, told Turkey recap.

Çolak, however, said his expectations remain high.

"Göztepe fans believe they will be at the top of Turkish football in ten years," Çolak said. "Everyone in my generation thinks that Göztepe will be the winner of the Süper Lig at least once in our lifetime and the new investors might give us this success."

As a leading team in İzmir, a city of 5 million residents, the last two decades have been a nightmare for Göztepe. The team played in the fifth-tier for nearly all the second half of the 2000s. However, they managed to climb to higher divisions and eventually moved to the top tier of in 2017.

Göztepe's five years in the Süper Lig did not meet fans' expectations. The team became a mid-ranking club until its relegation in 2022. Regardless, its fans expect a rapid comeback under the new ownership. Göztepe representatives did not respond to interview requests for this article.

Meltdown in Türkiye's football

Amid recent developments, investing in football in Türkiye might be perceived as a risky move, particularly in light of the ongoing currency devaluation. While Türkiye's clubs have long-suffered structural financial problems, the current economic crisis has deeply impacted their traditional revenue streams, particularly through TV broadcasting rights.

In 2016, the Qatar-based broadcaster beIN Group and the TFF reached a five-year deal worth 500 million US dollars annually for the Süper Lig's TV rights with a fixed exchange rate of 3.26 TL per USD. After five years of broadcasting under beIN Sports, the value of the Süper Lig's broadcasting rights has tumbled to 2.2 billion Turkish liras (about 118 million dollars) as the Turkish lira hit record lows against the US dollar.

The currency devaluation created new challenges for Türkiye's football clubs, as they continue to pay players in foreign currency while their revenue comes in Turkish liras. The result is even the Big Three clubs of Türkiye have been trying to cut expenses over recent years.

With its bright days seemingly in the past, football in Türkiye is in the middle of a bleak financial crisis and many fans have been left wondering if Ankersen's investment might offer some relief for the clubs facing a debt spiral.

Expressing many doubts, Tuğrul Akşar, author of the six books on the football economy, said the answer is not clear since the price tag for the Göztepe purchase remains undisclosed.

"There's no statement about the investor's strategy, aims, or plans for the upcoming five- and ten-year periods," Akşar told Turkey recap. "Moreover, we don't even know the size of the investment. The lack of transparency creates a situation that is difficult to say something about. I believe that the contribution to Turkish football from such an investor will be limited." (BK/VK)

This report was produced by Turkey recap with support from the Heinrich Böll Foundation in Turkey and the IPS Communication Foundation.

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