It's not just the more regular business world in which the British have, unlike their Continental European counterparts, been much against protectionism. Not only are we happy to let foreigners buy our industrial companies but now we are even willing to let them buy our most famous football clubs. But this is nothing that the British should worry about - just as it's beneficial for us for foreigners to buy some of our companies it may also be benefical for us to have foreigners buying our football teams.
Business of football
'Ere we go…
Dec 8th 2006
From Economist.com
More foreigners are buying English football clubs. A good reason to feel over the moon
AFP
The world's 5th richest man Mohammed bin Rashid Al Maktoum - the ruler of Dubai and the Prime Minister of the United Arab Emirates - wants to buy Liverpool Football Club.
CRITICS of foreign takeovers of leading English football clubs can be found in some unlikely corners.
Arsene Wenger, a Frenchman who manages Arsenal, a big London club, has said he worries that an influx of overseas cash threatens the “soul of football”. Its soul seems to be under particular threat at the moment. In August an American bought Aston Villa, an old club in the Midlands. Last month an Icelandic tycoon bought West Ham, another club in London. Then on Thursday December 7th Manchester City, another club in the Premiership, England's top division, confirmed that it is holding early talks with an unnamed investor over a possible £70m ($138m) injection of cash.
Earlier the same week came the news of, potentially, an even bigger deal involving a revered English footballing institution. Dubai International Capital (DIC), an investment vehicle indirectly controlled by the Gulf state’s sheikh, Mohammed bin Rashid Al Maktoum, is apparently poised to make an offer for a controlling stake in Liverpool football club. He is said to be casting an eye over the club’s books, with rumours that £450m may change hands soon.
If DIC does buy control of Liverpool it will bring to seven the number of foreign–owned clubs in England’s top league of 20. Until now the two most notorious deals were those that saw Roman Abramovich, a Russian billionaire, buy Chelsea in 2003 and the takeover of Manchester United by Malcolm Glazer, a wealthy American, in 2005. Both takeovers involve risks. Mr Abramovich has been accused of using his wealth to buy success without regard to the long-term financial stability of the club—although details are hard to verify, he has probably sunk more than £400m of his personal fortune into Chelsea with little hope of seeing a return. For now, at least, the club is riding high but doubters worry that the good times would come to a sudden end if Mr Abramovich tires of his plaything. The criticisms of Mr Glazer are rather different. Fans see him as an opportunist who has overloaded Manchester United with debt, while optimistically hoping that the club will, somehow, become far more profitable than before.
Yet neither criticism is particular to foreign buyers. Homegrown owners may be equally careless or starry-eyed. For many years English football clubs were local institutions, often sustained by local businessmen who hoped to boost their prestige in the community. As Premiership clubs have started to make money the old-style owners are cashing in. It helps that television revenues have been growing as global interest in English football appears to be insatiable. It seems that wealthy overseas buyers are seeking the same sort of kudos from owning a football club that previously motivated local owners, as well as the possibility profits.
For buyers the team is worth owning as long as it succeeds. DIC will certainly hope that Liverpool can again become one of the most successful clubs in England and Europe. And money to pay for players and a new stadium should not be lacking. Mr Abramovich’s Chelsea has shown, roughly, how much money might be needed to have a good chance of securing the Premiership. West Ham and Aston Villa will hope to have more capital to fund revitalisation too.
The truth is that the Premiership is thriving because it is open to global markets (in the same way the British economy is thriving thanks to it being open to global markets). Since its formation in 1992 it has proved a magnet for foreign talent and capital. Around half the registered players now hail from overseas (and it is now the world's richest football league).
Foreign players may crowd out English talent at the top of the game and some are accused of lacking commitment to the clubs they temporarily serve. But no one disputes the improved level of skill and professionalism now displayed on English pitches. Foreign managers have also brought new expertise to the game. No wonder the high-intensity action of the Premiership draws millions of fans from all over the world each week. The soul of English football, whatever Mr Wenger says, seems to be full of life.
economist.com
Business of football
'Ere we go…
Dec 8th 2006
From Economist.com
More foreigners are buying English football clubs. A good reason to feel over the moon
AFP
The world's 5th richest man Mohammed bin Rashid Al Maktoum - the ruler of Dubai and the Prime Minister of the United Arab Emirates - wants to buy Liverpool Football Club.
CRITICS of foreign takeovers of leading English football clubs can be found in some unlikely corners.
Arsene Wenger, a Frenchman who manages Arsenal, a big London club, has said he worries that an influx of overseas cash threatens the “soul of football”. Its soul seems to be under particular threat at the moment. In August an American bought Aston Villa, an old club in the Midlands. Last month an Icelandic tycoon bought West Ham, another club in London. Then on Thursday December 7th Manchester City, another club in the Premiership, England's top division, confirmed that it is holding early talks with an unnamed investor over a possible £70m ($138m) injection of cash.
Earlier the same week came the news of, potentially, an even bigger deal involving a revered English footballing institution. Dubai International Capital (DIC), an investment vehicle indirectly controlled by the Gulf state’s sheikh, Mohammed bin Rashid Al Maktoum, is apparently poised to make an offer for a controlling stake in Liverpool football club. He is said to be casting an eye over the club’s books, with rumours that £450m may change hands soon.
If DIC does buy control of Liverpool it will bring to seven the number of foreign–owned clubs in England’s top league of 20. Until now the two most notorious deals were those that saw Roman Abramovich, a Russian billionaire, buy Chelsea in 2003 and the takeover of Manchester United by Malcolm Glazer, a wealthy American, in 2005. Both takeovers involve risks. Mr Abramovich has been accused of using his wealth to buy success without regard to the long-term financial stability of the club—although details are hard to verify, he has probably sunk more than £400m of his personal fortune into Chelsea with little hope of seeing a return. For now, at least, the club is riding high but doubters worry that the good times would come to a sudden end if Mr Abramovich tires of his plaything. The criticisms of Mr Glazer are rather different. Fans see him as an opportunist who has overloaded Manchester United with debt, while optimistically hoping that the club will, somehow, become far more profitable than before.
Yet neither criticism is particular to foreign buyers. Homegrown owners may be equally careless or starry-eyed. For many years English football clubs were local institutions, often sustained by local businessmen who hoped to boost their prestige in the community. As Premiership clubs have started to make money the old-style owners are cashing in. It helps that television revenues have been growing as global interest in English football appears to be insatiable. It seems that wealthy overseas buyers are seeking the same sort of kudos from owning a football club that previously motivated local owners, as well as the possibility profits.
For buyers the team is worth owning as long as it succeeds. DIC will certainly hope that Liverpool can again become one of the most successful clubs in England and Europe. And money to pay for players and a new stadium should not be lacking. Mr Abramovich’s Chelsea has shown, roughly, how much money might be needed to have a good chance of securing the Premiership. West Ham and Aston Villa will hope to have more capital to fund revitalisation too.
The truth is that the Premiership is thriving because it is open to global markets (in the same way the British economy is thriving thanks to it being open to global markets). Since its formation in 1992 it has proved a magnet for foreign talent and capital. Around half the registered players now hail from overseas (and it is now the world's richest football league).
Foreign players may crowd out English talent at the top of the game and some are accused of lacking commitment to the clubs they temporarily serve. But no one disputes the improved level of skill and professionalism now displayed on English pitches. Foreign managers have also brought new expertise to the game. No wonder the high-intensity action of the Premiership draws millions of fans from all over the world each week. The soul of English football, whatever Mr Wenger says, seems to be full of life.
economist.com
Last edited:
