Nissan Considers Selling Soccer Team in Major Restructuring Efforts

Key Takeaways

Nissan plans to sell its majority stake in the Yokohama F. Marinos soccer team as part of its restructuring efforts.
The automaker has announced significant job cuts and factory closures to address production issues, reporting a loss of 115.7 billion yen in Q1.
This move follows Nissan’s recent cancellation of its sponsorship with City Football Group, as it works to reduce costs and focus on core operations.

Nissan’s Strategic Changes

Japanese automaker Nissan is undergoing significant transformations under newly appointed CEO Ivan Espinosa, as part of a restructuring program known as Re:Nissan. Among the various strategic changes aimed at optimizing operations is the decision to divest from its ownership of the Yokohama F. Marinos soccer team, which it has a majority stake in. Reports from Nikkei Asia reveal that Nissan is actively seeking buyers and has approached several companies, including a significant IT firm, to transfer the team’s management rights. The automaker plans to finalize the sale by 2026.

This announcement aligns with the broader efforts initiated under the Re:Nissan plan. In May, the company stated it would cut 20,000 jobs and close seven factories globally to mitigate excess production capacity. Recently, it confirmed the shutdown of the aging Civac plant in Mexico and the historic Oppama plant in Japan. During the first quarter of its fiscal year, from April to June, Nissan reported a staggering loss of 115.7 billion yen (approximately $782 million), marking the fourth consecutive quarter in the red. In contrast, it recorded a profit of 28.5 billion yen during the same time last year.

In addition to the soccer team, Nissan is also contemplating the sale of further assets, including its Yokohama headquarters. A report from August 23 indicated that a Japanese real estate arm of KKR has made an offer of around ¥90 billion (about $610 million) for the company’s 22-story office building.

Nissan’s potential sale of the Yokohama F. Marinos represents a significant shift as the club is deeply intertwined with the automaker’s history. The team was established in 1972 as Nissan’s company team and evolved into a professional entity with various league titles over the years. In 1999, the team merged with the Yokohama Flügels, resulting in the current formation known as the Yokohama F. Marinos.

Interestingly, Nissan is not alone in its association with football clubs, as several prominent Japanese automakers like Toyota and Mazda also own J.League teams. Toyota owns Nagoya Grampus, while Mazda has ties to Sanfrecce Hiroshima. Additionally, Honda FC competes in Japan’s fourth-tier league, further emphasizing the automotive industry’s ties to soccer.

In another recent development, Nissan has reportedly severed its sponsorship deal with City Football Group, which manages well-known teams such as Manchester City and New York City FC. Although these steps are designed to streamline operations and identify cost-cutting opportunities, it remains uncertain whether Nissan can achieve stable profitability in the near future.

The content above is a summary. For more details, see the source article.