LAFC: The huge deal underway that demonstrates the omnipotence of the Los Angeles franchise

Los Angeles FC, the Major League Soccer (MLS) champions, have announced their investment in Austrian fourth-tier club FC Wacker Innsbruck. The deal is pending approval from the board and association of FC Wacker Innsbruck, but no details about its value have been disclosed yet.

Founded in 2002, FC Wacker Innsbruck competed in the top flight for ten seasons before dropping down to lower divisions. LAFC’s executive vice president of corporate strategy and development Benny Tran said that they are excited to work with FC Wacker Innsbruck as they believe together they can rebuild a winning team that will ultimately return to the Bundesliga.

LAFC was valued at $1 billion by Forbes’ latest list of MLS franchise valuations, making it the first team in the league to reach this milestone. As a strategic partner, LAFC aims to increase its influence beyond North America and help bring back FC Wacker Innsbruck to the top table of Austrian soccer.

If successful, this would see them compete with current domestic champions Red Bull Salzburg whose owner also controls MLS’ New York Red Bulls.

The terms of LAFC’s investment deal remain undisclosed; however, if FC Wacker Innsbruck advances up the leagues, it is likely that LAFC’s influence will increase too. This marks a unique instance where an MLS club advances into foreign leagues rather than vice versa.

In 2006, Red Bull took over SV Austria Salzburg which led to rebranding as New York Red Bulls while City Football Group launched New York City FC in 2013.