It’s been a very slack news period recently which is why I haven’t been posting much. Financial results, of course, are often out by now. However, there has been a dearth of takeover stories.
When you think about it, a lot of potential investors have disappeared. The fall in the oil price hasn’t helped, as a lot of them come from countries where oil and gas contribute a major part of national revenues.
It’s been a very slack news period recently which is why I haven’t been posting much. Financial results, of course, are often out by now. However, there has been a dearth of takeover stories.
When you think about it, a lot of potential investors have disappeared. The fall in the oil price hasn’t helped, as a lot of them come from countries where oil and gas contribute a major part of national revenues.
President Putin may find the time to have a chat with Elton John about gay rights, but he isn’t likely to favour any of his oligarchs buying a British football club. In any case, a lot of their money has disappeared and they couldn’t transfer it to Britain.
The Middle East and the Gulf states have been hit by the drop in the oil price, which isn’t going to recover any time soon as the Saudis try to see off the American fracking industry. Also, some potential purchasers in the Middle East are offended by what they see as ‘racism’ in western attitudes towards staging the World Cup in Qatar. What we see in the west is suspicion of corrupt practices at Fifa for which there seems to be increasing evidence.
China, with its booming economy and a fifth of the world’s population, was seen as the next big hope. But the economy has nose dived and carries a huge pile of debt. Growth rates could settle at around four per cent a year.
There is the United States, but one or two owners from there have got their fingers burnt, notably Randy Lerner at Aston Villa. The Fenway Sports Group has found Liverpool more problematic than they might have hoped. Other potential American investors may decide to invest in soccer at home which is starting to gather momentum.
Where does that leave? There are other Asian countries and Thai investors have been active, e.g., at Leicester City and Sheffield Wednesday. But Thailand has a lot of political and economic problems. The Malaysian purchase of Cardiff City has not gone as plannned and Venky’s from India faced a steep and expensive learning curve at Blackburn Rovers.
There are other European countries, but Charlton fans are far from happy with their experience of Belgian rule. Europe is, in any case, facing big economic and political challenges.
Perhaps the party really is over, despite the big television deal which should make clubs more attractive – but also makes them more expensive.