When the takeover of Crystal Palace is completed as expected by the end of the season, it will become the fifth American owned club in the Premier League. At £90 million the price is higher, even allowing for inflation, than the £62m Randy Lerner paid for Aston Villa in 2006 or the £22m Ellis Short paid for Sunderland in 2009.
When the takeover of Crystal Palace is completed as expected by the end of the season, it will become the fifth American owned club in the Premier League. At £90 million the price is higher, even allowing for inflation, than the £62m Randy Lerner paid for Aston Villa in 2006 or the £22m Ellis Short paid for Sunderland in 2009.
This reflects the fact that, following the new broadcast deal, the Premier League is seen as an even better investment. It is a cheap investment compared with American sports. A deal last year for basketball’s LA clippers valued the franchise at $1.3bn.
Allan Ballheimer, a lawyer who worked on the Glazers’ takeover at Manchester United told The Sunday Times Business News, ‘US investors have gained a lot of experience in how to monetise sports clubs and see the UK as a great development opportunity.’
However, Stephen Clapham, a football finance analyst said, ‘The main risk is you are competing with people who are not running a business. Pockets are deep and ambitions are high.’ He does not think that financial fair play has stopped clubs splashing out on wages.
The big question now is when serious Chinese money will start to arrive in the Premier League. Chinese billionaire Wang Banlin’s £33m investment in Spanish champions Atletico Madrid is seen as a bellwether for Chinese investment in European football.