Portland Thorns FC and Timbers FC owner Merritt Paulson announced Thursday that he intends to sell the NWSL’s Thorns. Per a statement from Paulson, he will not be selling MLS’s Timbers. Here’s what you need to know:
- In Paulson’s statement, he wrote, “I believe it is in the best interest of the Thorns to have a new owner so that the Club can operate at the league level with a fresh voice to be a driving force for the NWSL. This has been a difficult decision for me, but I believe this is the best way to position the Thorns for continued success during this next chapter of the NWSL and the sport.”
- There is no set timeline for the sale process. There are already at least a few interested parties, but any new majority owner would still need to work with Paulson and the Timbers ownership group for game day operations at the team’s current home, Providence Park.
- Paulson additionally pledged $1 million to establish a new player safety office at the league level.
Backstory
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 in turn owned by Merritt Paulson (minority owner) and his father Hank Paulson (majority owner).
Merritt Paulson himself was the Thorns’ CEO until he stepped down from that role in early October, following the release of the Yates report. Last year, the Paulsons sold a minority share of the Timbers and Thorns to private equity firm Arctos Sports Partners; according to Sportico, that 15 percent share of the two clubs also included other unnamed investors.
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Paulson, who joined the NWSL as a founding team owner in 2012, has been a key leadership voice at the league since its inception, while the Thorns have been the marquee team of the league as well.
But the Thorns have also been one of the main teams highlighted across the past year-and-a-half in both investigative reporting and official investigations into systemic abuse across the NWSL.
Pressure has been mounting on Paulson to sell, with vocal dissent from both fans and players. Immediately after the release of U.S. Soccer’s investigation, led by former Deputy Attorney General Sally Q. Yates, in early October, Thorns captain Becky Sauerbrunn told media, “It’s my opinion that every owner and executive and U.S. Soccer official who have repeatedly failed the players and failed to protect the players, who have hidden behind legalities and have not participated fully in these investigations, should be gone.”
While Sauerbrunn did not specifically say Paulson’s name, Paulson was a key figure in the Yates report as collected emails, texts and statements painted a picture of Paulson knowing that former Thorns head coach Paul Riley had sexually harassed Mana Shim, but that Paulson did not warn other owners about Riley’s behavior, and in fact made multiple positive statements to other team officials about hiring Riley as a head coach.
Portland completed an internal investigation via the law firm DLA Piper. While their report has not been shared by the team officially, according to The Oregonian, the limited investigation found the club did not do “enough” following Shim’s original report against Riley in 2015.
What could the Thorns sell for?
A report in Willamette Weekly claimed that Peregrine “is seeking $30 million to $50 million” for the Thorns, a valuation that somewhat aligns with the latest sale of an NWSL team — Michele Kang bought majority ownership of the Washington Spirit in a $35 million sale earlier this year.
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There are no public figures for an independent valuation of the Thorns, but considering the team’s history of three championship wins in 2013, 2017 and 2022, two NWSL Shields in 2016 and 2021, plus the team’s ability to drive revenue, the final number could even surpass $50 million. Sportico recently valued the Timbers and Thorns at $685 million.
Buying the team is also just the first major test of any new ownership group’s wallets — the NWSL and the rest of the league’s owners will expect a significant investment in the team and additional facilities, such as a dedicated training facility for the Thorns.
How will a sale work?
There are plenty of logistical issues to consider once a sale actually happens — unwinding shared sponsorships, ticket sales, staff and more. But first, there’s the actual logistics of a sale. In theory, the process begins now, but there is no set deadline to find a new owner.
Paulson wrote in his statement: “I am fully committed to doing all that is necessary to ensure a smooth transition and the continued success of the Thorns, including providing favorable usage terms for Providence Park that will enable the Thorns to continue to capitalize on their popularity in Portland.”
There are at least a few interested parties publicly known to currently be in the running.
The main contender thus far is an ownership group led by women: Mel Strong (a former Nike VP who is currently one of the managing partners of Next Ventures, a health and wellness investment company), Sue Levin (co-founder and CEO at Lucy, also a former brand director for women’s sports at Nike) and Ann Rodriguez (former WNBA chief operating officer among other relevant roles) are among the group’s leadership.
No formal bid has been submitted yet from that group, but they provided a statement to The Athletic on Thursday: “We represent a group of women sports and business executives prepared to make a bid for the Portland Thorns. Our vision is to build on the club’s storied history with an athlete-centered approach, where the Thorns are management’s sole focus. We’re excited to enter into discussions with the current ownership and begin our due diligence.”
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Levin told The Athletic that the group has every intention of keeping the team in Portland, and at Providence Park. “It is also clear the team needs a world-class training facility with grass fields,” she continued. At the same time, she stressed it’s “premature” to discuss any bid strategy until the group has had further conversations with Paulson and the team.
Portland supporters are also attempting to fund their own purchase of, at minimum, a stake in the team.
What does this mean for the Timbers?
Right now, it seems like there should be no impact at all. While supporters may have hoped for a sale to include both teams, there was never any sign that MLS intended to apply pressure on the Paulsons to sell.
In a statement to The Athletic, MLS commissioner Don Garber said “For more than a decade Merritt Paulson and the Timbers have played an important role in the growth of Major League Soccer. He was also instrumental in the launch of the NWSL, and the Thorns have achieved great success in many ways during the past decade. As the Thorns transition to a new ownership group, they will undoubtedly continue to have a significant impact on Portland, the NWSL, women’s sports and soccer in North America. At the same time, I am confident the Timbers will continue to be a successful MLS club in the years ahead.”
What about the player safety office?
Establishing a player safety officer of some kind for both the NWSL and USSF was one of the recommendations in the Yates report; ideally, this officer would monitor the implementation of player safety policies, receive complaints, monitor teams, coordinate training and make regular reports to the board of directors, among other safety-related tasks. USSF has already established a Participant Safety Taskforce head up by Shim.
The NWSL has yet to begin hiring for any player safety roles, with the results of the joint investigation run by the league and the NWSL players’ association expected at some point this month. Presumably, the structure of the player safety office will be included in the joint investigation’s recommendations, or as part of any overhauls announced by the league as a result of their own investigation.
The league’s commissioner Jessica Berman said in a statement Thursday: “I support Merritt Paulson’s decision to sell the Thorns, his commitment to aid in a smooth transition for a new ownership group in Portland, and the $1 million contribution to the league. This money will be used to launch a new NWSL Player Safety Department — coming out of this chapter in the NWSL’s history we will emerge stronger than ever before and make this a league the players are proud to play in. 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. We will continue to work collaboratively to ensure the players and the club have everything they need to be successful on and off the pitch.”
Required reading
- ‘This guy has a pattern’: Amid institutional failure, former NWSL players accuse prominent coach of sexual coercion
- Selling Portland Thorns without Timbers would face numerous difficulties
- How Portland Thorns fans balanced protest and support for the NWSL semifinal
(Photo: Troy Wayrynen / USA Today)