American Owners Dominate English Football Clubs

The English Premier League kicked off its new season with Manchester United clinching a 1-0 victory against Fulham, thanks to a late goal from Joshua Zirkzee at Old Trafford. Interestingly, the Glazer family, who owns United, will face off against Shahid Khan, the owner of Fulham, in a different kind of football when their NFL teams meet on Saturday.

Both the Glazers and Khan are part of a growing trend, as American ownership in the Premier League continues to rise. There are currently nine American ownership groups, and even newly promoted Ipswich Town is owned by American financial firms.

Americans have been investing in English football for about twenty years. Malcolm Glazer’s buyout of Manchester United in 2005 set a precedent, valuing the club at around $1.4 billion back then. Meanwhile, Stan Kroenke started his journey with Arsenal in 2007, gaining full control in 2011 at a valuation of $1.2 billion.

According to a recent report, Manchester United tops the list of global soccer team valuations at $6.2 billion, with Arsenal not far behind at $3.91 billion. Fenway Sports Group, owned by John Henry, purchased Liverpool in 2010 for $476 million. Their investment has paid off immensely, as the club’s value has soared to over $5 billion today.

Mark Attanasio has also made waves in the industry, increasing his stake in Norwich City, bringing American ownership in the Championship up to nine teams. Many American investors are drawn in part by the global reach of these clubs, but there’s a common desire for salary restrictions, similar to those seen in North American leagues, to avoid heavy losses.

In stark contrast to the Premier League’s financial struggles, the NFL reported a pre-tax profit of $4.6 billion last season. Fewer than five Premier League teams turned a profit after player trading last season, with losses totaling around $684 million. This discrepancy illustrates the financial challenges clubs face in English football.

Shahid Khan’s investment strategies reflect the differences between the two sports. He acquired the Jacksonville Jaguars for $770 million in 2011, and the team has since generated considerable profits, nearing $5 billion in value now. On the other hand, Khan bought Fulham for over $200 million, which has seen considerably higher operating losses, around $500 million during his tenure.

Despite the financial chaos in European football, American investors are still keen. One current example is John Textor, who wants to purchase Everton. The club has been struggling financially, posting a $107 million loss last season, and has had six consecutive years of losses totaling $623 million. Nevertheless, it hasn’t deterred Textor, showing that the appetite for UK soccer remains strong among Americans.