In recent years, soccer in Europe has seen an unprecedented influx of American investors, with clubs across the continent’s top leagues falling under foreign ownership. The attractiveness to these American investors is due to the possibility of large revenue growth coupled with cheap acquisition expenses. This trend is most notable in Italy’s Serie A and England’s Premier League. There, American capital now controls a significant portion of clubs. Despite occasional challenges, the appetite for European soccer in the United States shows no signs of slowing down.
Two main reasons are driving American investment in Europe: the cheap cost of clubs and the unrealized income potential. For those with vast money, European teams provide a cheap entry point. Especially in contrast to the stratospheric pricing of US sports franchises in leagues like the NFL or NBA. For instance, in 2022, Chelsea were sold for $3.1 billion, while Milan changed hands for $1.3 billion. While these are substantial sums, they pale in comparison to the valuations of American franchises. For example, there are the Dallas Cowboys, who Forbes recently valued at over $10 billion.
Moreover, American investors see European soccer as ripe for modernization, particularly through media and entertainment strategies. To these investors, soccer clubs resemble U.S. professional leagues. Thus, commercial exploitation, branding, and evolving marketing tactics can yield enormous profits.
Many American owners have sought to turn soccer clubs into media enterprises by upgrading stadiums and expanding their digital presence. However, while the vision is there, the execution has been stifled by bureaucratic and political obstacles, especially in Italy. Despite this, the long-term prospects of increasing club revenues through broadcast rights, merchandising, and sponsorship deals keep these investments attractive.
North American dominance in England and Italy
American investors now own a…
Source link : https://worldsoccertalk.com/news/american-hunger-why-us-investors-love-investing-in-europe/
Author : Martina Alcheva
Publish date : 2024-10-18 17:31:35
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