After years of pouring money into English football, some American investors are beginning to capitalise on the dramatic rise in the value of their assets, with major clubs including Liverpool, Chelsea and Crystal Palace at the centre of potential ownership changes.
American investment has transformed the Premier League ownership landscape over the past 15 years. Investors were attracted by clubs they considered undervalued compared with major US sports franchises, despite English football boasting enormous global audiences, lucrative broadcasting contracts and generations of loyal supporters.
That investment strategy appears to have paid off handsomely.
Recent developments involving billionaire Mark Walter have highlighted the trend. Walter reportedly agreed to sell his interest in the NBA’s Los Angeles Lakers as part of a transaction valuing the franchise at around $12.5 billion, less than a year after he took control at a valuation of approximately $10 billion.
Walter and his long-time business partner Todd Boehly have also reportedly been involved in discussions surrounding the potential sale of their interests in Chelsea.
Liverpool’s extraordinary increase in value
Liverpool provide an even clearer example of how dramatically Premier League valuations have increased.
According to the report, Fenway Sports Group (FSG) agreed to sell a 30 per cent stake in Liverpool to a consortium led by Amit Bhatia and involving high-profile investors including Jeff Bezos and Facebook co-founder Eduardo Saverin.
The transaction was reportedly worth around £1.65 billion, placing Liverpool’s overall valuation at approximately £5.5 billion.
The figures are remarkable considering FSG purchased the entire club for around £300 million in 2010.
However, the transaction does not represent an FSG departure from Anfield. Instead, selling a minority stake allows the group to realise part of the huge increase in Liverpool’s value while retaining control and remaining positioned to benefit from any further appreciation in the club’s worth.
A different model of football ownership
This could represent an important change in how some of Europe’s biggest clubs are owned.
Traditionally, football ownership followed a relatively straightforward model: an investor bought a club, controlled it for a number of years and eventually sold it to another owner.
Increasing valuations are making that model more difficult.
Rather than selling an entire club, owners can now dispose of 10, 20 or 30 per cent stakes, introduce new investors and unlock hundreds of millions — potentially billions — while maintaining overall control.
Manchester United have already demonstrated how such a model can work. Following the Glazer family’s strategic review, which initially raised the possibility of a complete takeover, Sir Jim Ratcliffe eventually acquired a minority stake, allowing the Glazers to remain shareholders.
The growing valuations of elite clubs also mean that the number of individuals capable of purchasing them outright is becoming increasingly limited.
From buying clubs to selling stakes
Crystal Palace’s American shareholders are also reportedly considering their options, adding to suggestions that a new phase of American involvement in English football may be developing.
It would be premature to describe the situation as a widespread American withdrawal from the Premier League. Different ownership groups have different objectives and financial circumstances.
However, they have one important factor in common: the football assets they purchased have increased substantially in value.
For years, the debate centred on why American investors were so eager to acquire English football clubs. The attraction was relatively simple — they believed Premier League clubs were undervalued compared with their commercial and global potential.
The huge increase in valuations suggests that assessment was largely correct.
The next stage could therefore be very different. Instead of American money simply arriving in English football, investors may increasingly look to sell minority stakes, release capital and restructure ownership while maintaining an interest in clubs whose values could continue to rise.
