America's Interest in the Beautiful Game [NFTW #44]

In recent years, there has been a growing interest among American investors in British football teams. This trend has been driven by a number of factors, including the increasing global popularity of football, the financial success of the Premier League, and the potential for American investors to use football teams as a platform to expand their business interests in Europe.

Football is the most popular sport in the world, with over 250 million active players and billions of fans. The sport's popularity has been growing steadily in recent years, particularly in the United States. According to a 2018 study by the Pew Research Center, 7% of Americans now identify as football fans, up from 4% in 2010. This growth in popularity has been driven by a number of factors, including the success of the US national team in recent years, the increasing number of football games being broadcast on television, and the growing popularity of football video games.

The Premier League is the most financially successful football league in the world. In the 2019-20 season, the league generated over $6 billion in revenue. This revenue is generated from a variety of sources, including television rights, sponsorships, and match-day ticket sales. The financial success of the Premier League has made it an attractive investment for American investors.

In March 2022, Todd Boehly led a consortium that purchased Chelsea Football Club from Roman Abramovich for £4.25 billion. The purchase was completed on May 29, 2022. Boehly has a number of plans for Chelsea. He wants to invest in the club's youth academy, stadium, and training facilities. Unlike many other owners, Boehly was considerably active in his first few days of ownership. He spent the large part of the first two months on his private jet, flying around Europe to speak to the biggest agents in football to negotiate transfers personally.

Todd Boehly has been very vocal in the investment opportunity that British football provides. At the SuperReturn International private equity conference in Berlin in 2022 he said “They don’t realise how big their opportunity is. Let’s get a hold of our destiny and think about how to optimise this.” His immediate plans to improve the commercial revenue of Chelsea F.C. includes sports gambling, better player marketing and more rewards for fans who buy season tickets.

Let’s have a look at some of the reasons why this may be the case:

1. Economic Opportunities: One of the primary motivations for American investors seeking British football teams lies in the vast economic potential of the sport. British football clubs have proven to be lucrative investment opportunities, driven by substantial revenue streams from broadcasting rights, sponsorships, merchandising, and ticket sales. The English Premier League, in particular, is a global powerhouse, attracting billions of viewers worldwide. The financial stability and growth prospects of British football make it an attractive investment avenue for American business tycoons and consortiums looking to diversify their portfolios.

2. Global Reach and Market Expansion: British football enjoys unparalleled global reach, with matches broadcasted in over 200 countries, attracting a massive and diverse fan base. American investors recognise the power of this global reach as an opportunity to expand their brands and market presence beyond national boundaries. Owning a British football team provides a platform to promote not only the club but also the associated businesses, creating a broader international market for their products and services. This cross-promotional potential appeals to investors seeking to enhance their brand visibility and establish a global presence.

3. Strategic Branding and Sponsorship Opportunities: The association of American investors with British football teams also presents unique branding and sponsorship opportunities. By sponsoring a top-flight British club, investors gain exposure to millions of passionate football fans globally. This exposure translates into enhanced brand recognition and consumer loyalty, leading to increased market share and sales. Moreover, partnerships with international football clubs allow American investors to forge connections with European markets, facilitating valuable collaborations and business expansion opportunities.

4. Cultural Appeal and Passionate Fan Base: football holds a special place in the hearts of millions of fans worldwide, and British football, in particular, embodies this passion and cultural significance. American investors are drawn to the fervour and dedication of British football fans, recognising the emotional connection and loyalty they possess. The opportunity to be a part of this cultural phenomenon, to engage with the passionate fan base, and to contribute to the growth and success of a revered institution is a powerful motivator for American investors looking to invest in British football.

Wrexham F.C.

Ryan Reynolds and Rob McElhenney are two of the most famous American actors in the world. In 2020, they bought Wrexham AFC, a Welsh football team that plays in the National League, the fifth tier of English football. The purchase was made through their company, RR McReynolds LLC.

Reynolds and McElhenney have said that they bought Wrexham because they are fans of the club and they want to help it to succeed. They have also said that they want to use Wrexham as a platform to promote football in the United States.

Since buying Wrexham, Reynolds and McElhenney have made a number of changes to the club. They have hired a new manager, appointed a new board of directors, and signed a number of new players. They have also launched a number of marketing campaigns to promote the club in the United States.

In 2022, Wrexham won the National League and were promoted to League Two, the fourth tier of English football. This was the club's first promotion in 15 years.

It’s clear that the American investor interest in British football is here to stay and is largely welcomed (I still want the Glazers gone, respectfully). The major question is how will investor plans go down with a fanbase that aren’t too fond of change. We saw how the European Super League was scrapped when fans found out—will there be a similar sentiment with other developments? We’ll have to wait and see.

Until next week. Peace.