An own goal by Nissan
Japanese automaker Nissan has been through the ringer, as in recent months, its recently appointed CEO Ivan Espinosa has led the company through a corporate restructuring program known as Re:Nissan, which saw some significant changes take place within the company.
Although the Yokohama-based automaker is poised to make some drastic changes to reduce its production capacity and personnel headcount, it is also set to part ways with another long-standing asset. According to a new report from Nikkei Asia, Nissan is looking to offload its shares in the Yokohama F. Marinos, a soccer team that the automaker owns a majority stake in.
According to unnamed sources who spoke with the Japanese business publication, the automaker is adamant to unload its stake in the team, as it has approached several companies, including “a major IT company,” to transfer the club’s management rights. Per the sources, the automaker is expected to narrow down its selection of potential buyers by the end of 2025 and to finish selling off its stake in 2026.
Getty Images
Another big step in the automaker’s restructuring plan
The news about the soccer team comes as the company advances its Re:Nissan restructuring plans. Back in May, the carmaker announced it would cut 20,000 jobs and shut down seven factories worldwide to streamline its excess production capacity. Since then, it has formally announced plans to shut the aging Civac plant in Mexico and the historic flagship Oppama plant in Japan.
On July 30, Nissan announced that it incurred a loss of 115.7 billion yen ($782 million) during the first quarter of its fiscal year, from April to June, marking the fourth consecutive quarter of losses for the automaker. By comparison, Nissan posted a profit of 28.5 billion yen during the same period last year.
Additionally, it is also seeking to sell other assets, including the very Yokohama headquarters where Espinosa conducted his interview. On August 23, a report emerged showing that a Japanese real estate arm of KKR offered around ¥90 billion ($610 million) in a sale-leaseback agreement for Nissan’s 22-story office building.
Getty Images
Nissan isn’t the only automaker with a club on the pitch
If Nissan decides to sell its stake, it will be letting go of a significant part of its history. The most recent iteration of the Yokohama F. Marinos traces its roots back to 1972, when it was established as Nissan’s company team. From 1972 until 1991, the then-called Nissan Motors Football Club quickly became an established name, earning its first promotion in 1976 and playing its first season in the top division in 1979.
Nissan would change the team’s name to the Yokohama Marinos when the J.League was formed in 1992, cementing it as a true professional team in the top division. In 1999, it would merge with the Yokohama Flügels to form the Yokohama F. Marinos of today. Throughout its history, it has won several league titles.
Notably, Nissan isn’t the only automaker with a stake in a football club; some of Nissan’s domestic sales rivals are also involved in the sport. J.League teams Nagoya Grampus and Sanfrecce Hiroshima are owned by Toyota and Mazda, respectively, while Honda FC competes in the Japan Football League, the country’s 4th-tier association football league.
Final thoughts
The news of this development comes less than a week after Nissan reportedly terminated another key relationship in the soccer world. Per Kyodo News, sources close to the automaker said that it ended a sponsorship deal with City Football Group, the owners of Premier League powerhouse Manchester City, as well as the New York City Football Club (NYCFC) in the MLS.
Although Nissan is taking strides to streamline vehicle development and identify cost-cutting opportunities, time will tell whether the company can fully return to profitability.
