Chelsea to blame for lack of new US owners in Premier League
Rich Americans have been looking to invest massive amounts of money into Premier League clubs for years. Nearly half of the teams in the English division have some form of American ownership. Burnley also has investors from the United States as well, but the Clarets were recently relegated to the Championship.
Everton will likely become the latest Premier League side to be controlled by an American businessman. However, John Textor, the investor currently in talks with the Toffees, already owns a piece of Crystal Palace. He must sell his minority share in the Eagles before officially taking over Everton in the near future.
While American investors have flocked to the Premier League over the last two decades, interest has undoubtedly simmered down lately. Owners of several English top-flight teams have been attempting to sell minority shares in recent months. This list, according to Bloomberg, includes Tottenham Hotspur, Brentford, Wolves, and West Ham. Recently relegated Sheffield United has also been up for sale for around a year as well.
Chelsea owners have distorted the market after mismanaging investment
In years past, wealthy Americans would have likely jumped on these business opportunities. There are multiple factors as to why investors from the States are hesitant to splash cash into Premier League clubs. Top English teams have essentially become overpriced, and the league is so competitive that it is difficult to limit costs.
However, a significant deterrent has been the recent developments at Chelsea. A group led by American billionaire Todd Boehly purchased the Blues for over $5 billion in the summer of 2022. The west London side had been one of the top soccer clubs in all of Europe in the 20 years before Boehly entered the fray. Nevertheless, the team is now struggling both on the pitch and off.
Along with shelling out huge amounts of money to buy Chelsea, Boehly and company have also completely revamped the club’s roster. They have spent well over $1 billion on dozens of new players within the last two years. Despite this, the Blues have finished 12th and sixth in the Premier League table since the Americans took control of the team.
The combination of spending freely on new players and failing to at least qualify for the lucrative Champions League has had a massive impact on the club’s finances. Records show that the team reported pre-tax losses of around $273 million over the last two years.
American owners stay close to home, avoid Premier League
Roger Mitchell, a key figure at Albachiara Group, specifically pointed to Boehly’s mishandling of Chelsea as to why Americans are avoiding the Premier League. Mitchell’s organization is a consulting firm that focuses on determining the value of sports teams. “There’s no cost control, and you have irrational competitors like Todd Boehly who distort the market,” Mitchell told Bloomberg.
With the risk seemingly outweighing the reward, American investors are instead opting to stay in the States. Investing massive amounts of funds into American sports is essentially becoming more and more attractive.
Adam Sommerfeld of Certus Capital backed up this notion. The firm also advises wealthy clients on potentially investing in sports teams. Sommerfeld told Bloomberg that more of his clients are gravitating towards women’s teams and smaller niche sports.
“The American investors we are dealing with like being presented with a unique opportunity,” stated Sommerfeld. They want the “possibility of making a short-term impact with a similar-sized investment.”
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