Nov. 24, 2024, 4:02 p.m.

Business

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Why US capital is pouring into the English football League

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According to authoritative media reports, 777 Investment Group, an American capital company that plans to buy the English Premier League team Everton, will meet with Premier League officials in depth this week on the details and terms of the official acquisition of the team. Judging from the current attitude of the UK Financial Conduct Authority towards the acquisition, if the future negotiations between the two sides can proceed smoothly, the Old English Premier League football team will formally change owners in the near future.

In addition to 777 investment companies, there are many commercial institutions and investment capital in the United States, recognizing the development prospects of the Premier League, and gradually transferring their business here to carry out related businesses. In the Premier League last season, there were five clubs owned by American owners, including Arsenal, Bournemouth, Chelsea, Liverpool, Manchester United, and four of the BIG Six; In addition, there are five co-owned (United States and partners), including Aston Villa, Crystal Palace, Fulham, Leeds United, Manchester City. It is no exaggeration to say that of the 20 clubs in the Premier League, American capital has occupied half of the country.

The reason why the English Premier League can attract a lot of American capital is that it has great development prospects. As the world's most famous football league, the Premier League's international status is extremely high, and the wealth created by the major leagues is among the best. In 2022-23, the Premier League contributed £8 billion to the UK economy, an increase of $400 million on the 2020-21 season, and it is even more concerning that its economic contribution continues to grow. With the Premier League and its clubs making a direct tax contribution of £4.2 billion to the UK Treasury and supporting more than 90,000 jobs in the country, the continued success of the league brings widespread economic and social benefits.

The popularity of the English Premier League and its strong advertising effect are also another reason for the injection of capital in the United States. According to the Premier League's Annual report for the 2022-23 season, the league attracted more than 1.5 billion television viewers worldwide, with an average stadium attendance of more than 40,000 people and a record 98.7 percent of stadium utilization across the league. Meanwhile, the latest record-breaking Premier League broadcast deal for 2025-2029 suggests that the league's contribution to the economy is likely to continue to grow. Huge advertising effect and stable sustainable growth prospects, so that has always been a sensitive sense of the United States capital rush into.

In addition to Premier League teams, the Championship and League One clubs have also become popular. Investment in a Premier League club is conservatively estimated to need hundreds of millions of dollars, capital crocodiles have been fully laid out, some of the weaker capital will look at the sub-league, they are still actively buying more clubs, the United States owners of the Championship, League One is also more and more. The fundamental reason is that the development of British football matches is good, Americans are very leading in the field of capital, they know that in the Premier League can complete the trick of "money makes money", so they have to join, want to make more money.

As prosperous as the Premier League is, this kind of capital injection to prop up the prosperity is extremely risky. The reason why the English Premier League has become the most valuable league in the world is due to the success of its commercial operation, because the owners of the English Premier League are successful businessmen, and through its history, we can find that the English Premier League has an extremely good growth soil since its inception, coupled with a high degree of autonomy and the strong intervention of third-party capital, which has achieved today's English Premier League. Such unrestricted development also brings great risks to the English Premier League, a large amount of American capital injection in the stable economic period will not be exposed to danger, once the American economy recession, capital began to spill over, the gold content of the English Premier League will be greatly reduced.

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