It is said that the fastest way to become a millionaire is to first become a billionaire – and then buy a sports team.
But America’s richest people don’t seem to have gotten the message.
Increasingly, deep-pocketed American investors are setting their sights beyond the NFL or NBA — and across the Atlantic to soccer’s English Premier League (EPL).
Today, half of the 20 EPL teams are owned, partially or fully, by American money – and despite inconsistent returns, more may be on their way.
Formed in 1992 when 22 teams disbanded A football league (which dates back to the 1880s), the EPL is now a global brand, watched in 188 countries, with an annual television audience of over 5 billion.
Since the mid-2000s, the three biggest EPL teams – Manchester United, Liverpool, and Arsenal – have been owned by Americans.
But now Bournemouth, Chelsea, Fulham, Aston Villa, Crystal Palace, Manchester City, and Leeds United have also come under some degree of American control.
With billions of dollars (and viewers) at stake, the impending sale of Manchester United by its American owners, the Glazers, is making headlines on both sides of the pond.
Indeed, the decision to sell Manchester United – considered by many to be British football’s biggest prize – has seen interest from potential Qatari buyers as well as British chemical mogul Sir Jim Ratcliffe.
But there are rumors that several American investors are yet to show their hands.
Is price stopping them?
The Glazers are angling for a salary of around $7 billion and if they get anywhere near that, it will surpass the record $5.4 billion spent by Los Angeles part-owner Todd Bohly for London’s Chelsea Football Club in May 2022. will end
But what’s in it for new owners, especially Americans spoiled for choice with franchises at home?
According to Kieran Maguire, football finance expert at the University of Liverpool and presenter of ‘The Price of Football’ podcast, the EPL – despite the billion-dollar price tags – may actually be undervalued.
“The key is the value of UK sports franchises,” he tells the Post. “A few months ago, Bournemouth was bought by Texan investor Bill Foley for £120 million ($185 million).
“It’s a bargain, especially with the strength of the US dollar against the pound and the huge costs involved in buying a franchise in the US.” (For example, the Phoenix Sun, has just been sold For $4 billion.)
It’s also a bargain because even the worst-performing team in the EPL receives about $120 million in league prize money and a share of broadcast revenue each year.
Still, it’s not necessary to welcome potential investors with open arms.
There is an inherent suspicion of foreign coaches or owners, particularly Americans, a fact not helped by the mediocre work done by the Glazers at United.
Back in 2005, the family borrowed much of the $950 million needed to buy United, before loading the debt back onto the club.
The resulting burden has prevented much-needed investment in the club’s aging stadium and training facilities.
Then there’s Todd Bohly’s short stint as Chelsea owner, which has cemented the belief for many that Americans are clueless about football.
Within weeks of arriving, Bohly sacked coach Thomas Tuchel, who had just won Europe’s premier club competition, the Champions League, replacing him with Graham Potter, who had only managed 26 appearances so far. Oversaw nine wins, knocking Chelsea out of the EPL title. race
And let’s not forget about the costs.
To date, Bohly has spent nearly $720 million to sign 17 new players and $357 million in January 2023 alone.
This is more than the combined total spend of all 78 teams in Europe’s other major leagues. Even the big clubs can’t compete.
Liverpool may be the most successful team in England but they cannot match the financial might of Chelsea despite having LeBron James as their partner.
So between all these player payments can anyone make money in UK football?
Yes, says Kieran Maguire.
“Look at Manchester United,” he adds. “In a good year, their revenue is around $750-800 million and they have a fan base of around 1.1 billion people globally.
“That works out to about 75 cents per fan.
“If a new owner can double that, suddenly you’re looking at a very profitable business.
It helps that the EPL’s annual revenue is still half the NFL’s $18 billion — even though, unlike the NFL or NBA, EPL games aren’t staged overseas.
The lucrative prospect of a future ‘European Super League’ – as well as potential matches outside the UK – is music to investors’ ears.
But the EPL’s popularity doesn’t always translate into profits.
When Cleveland Browns owner Randy Lerner paid $125 million for EPL team Aston Villa in 2006, for example, he made $300 million over a decade, before selling it to Chinese businessman Tony Jiantong Xia in 2016 for just $90 million.
Forbes magazine estimates The venture cost Lerner about $100,000 for each day he was in charge.
Yet, while English football has clearly become a game for billionaires, only millionaires are also taking to the field.
In February 2021, actors Ryan Reynolds and Rob McElhaney bought Wrexham, a Welsh club playing in the fifth tier of English football, the National League.
Since taking over, the team has gone from strength to strength, topping their division and poised for promotion to the highest level of football.
And after “Welcome to Wrexham,” the Disney+ docu-series following the team’s fortunes, the town has become a tourist destination, with fans from as far away as Australia and Canada flocking to watch the games.
It is, says Reynolds, “very time-consuming, emotionally draining, financially stupid … and completely addictive.”
And the price paid?
Only $2.5 million.
