How Is US Investment Changing The Face Of UK Football?

As US money floods into UK football, BTG’s Julie Palmer and Rob Insall ask what it means for club ownership, commercial strategy and the future shape of the game.

There is no denying the influence that US investment has had on football in the UK. Around half of Premier League clubs and 20 of the 72 EFL clubs have US-investors, and with this investment likely to continue, their influence on the way clubs are run is going to grow. But how could that shape the UK game?

World Cup Fever

There is no bigger example of US influence on football than the recent World Cup. While the action on the pitch took centre stage, the sponsorship deals, rights and prices caused much debate. It was clear that the US experience of monetising all levels of sport drove a significant increase in revenues.

Controversies on ticket pricing and transport aside, the mega stadiums and infrastructure to connect them, through to the advertising and brand partnerships gave an example of just how many avenues for revenue can be explored. Even the halftime show and hydration breaks were utilised as advert opportunities.

Brands have been able to get a slice of the World Cup fever as well, be it directly through partnerships and their player ambassadors or participating through social media in viral moments.

While this level of commercial focus worked for the World Cup on American soil, the level of monetisation may not directly translate over the pond. For instance, the UK population are likely to oppose halftime shows and regular breaks filled with advertising. Nonetheless, the World Cup will have given clubs ideas or shown US investors that UK football is open to selective change.

This presents an opportunity. Yet, how are clubs going to achieve it in a way that fits within the current framework of the sport?

In the case of high-profile players, are clubs able to control image rights and benefit from this by working with brands?

We commonly see podcasts, social media content and advertising capitalise on player popularity alongside influencers to promote clubs. There is potential to be filled in this area, but where reputation is concerned a delicate balance is needed.

Commercialising Real Estate Assets

Tangible assets like stadiums are perhaps a more immediate opportunity. Alongside matchday revenue, many are used for a range of events, though filling the calendar is not guaranteed.

Backed by investment, we are seeing more clubs maximise this asset to create more non-matchday revenue.

Fulham FC has incorporated a leisure club complete with open-air swimming pool and gym into its newly developed Riverside Stand creating a 365-day-a-year destination.

Around 78% of members reportedly never go to the football games, meaning the club is reaching more of its community than ever before.

The transformational power of a stadium is not just applicable to a football club; it can spill across a community. An example is how Everton’s new stadium has reinvigorated a derelict dock site.

When sports fans flock to the ground for rugby league, Lionesses and men’s football games they increase footfall for surrounding businesses. Successful developments like this are often a catalyst for further development. The next step is often houses, businesses and jobs. It is something we have seen in our work across sports and business.

Perhaps not all clubs have the means to create something like Everton’s new stadium or the next Etihad Campus. But the lesson remains the same; maximising land and other assets enables further development. US investors know this and will see these opportunities as key to building beyond seasonal and match day revenue streams.

A Balance To Strike

While there is opportunity in the commercialisation of clubs, and a bit of US influence has done no harm, the game, the teams and the fans must remain at the centre of decisions. The benefits of monetisation of clubs, assets and player profiles should be seen in the club and the community around it – the backlash to recent proposed FIFA plans is a rare, extreme lesson in this area.

As US investors grow their influence and seek to maximise investment at clubs, monetisation will be commonplace. Certainly, the powerful influence of football and popular players provide valuable pathways to more sustainable income. And in the coming years we will see how these opportunities can fund success on the pitch.

Whatever the level, the key to success is going to be striking a balance between the customer at the heart of the club and the commercialisation that grows an investment.

For more information, visit: www.btguk.com