Nine out of the 20 clubs in the Premiership are wholly or partially owned by non-British entrepreneurs and the number may well increase soon. Arsene Wenger has asked, what is the motivation for a billionaire to buy a Premiership club? It’s interesting to look at a perspective from the Gulf states where many of the owners are increasingly likely to come from. Jumana Al Tamini from gulfnews.com argues, ‘While the buyers’ motives might vary, they all share the same goals: more social exposure; huge profits and high financial returns.
Nine out of the 20 clubs in the Premiership are wholly or partially owned by non-British entrepreneurs and the number may well increase soon. Arsene Wenger has asked, what is the motivation for a billionaire to buy a Premiership club? It’s interesting to look at a perspective from the Gulf states where many of the owners are increasingly likely to come from. Jumana Al Tamini from gulfnews.com argues, ‘While the buyers’ motives might vary, they all share the same goals: more social exposure; huge profits and high financial returns. In essence it’s big business offering big returns for big egos.’ Moreover, ‘British clubs benefit from more lax foreign ownership laws.’ There is a lack of regulations preventing foreign citizens from owning an English football club. Most English football clubs are not plcs and potential buyers usually only need to buy out a few key shareholders.
In terms of motives, ‘There is an element of the billionaires’ club – like collecting fine art or giant yachts,’ commented Raoul Simons, sports editor at the Evening Standard. ‘Of course, there is the added benefit that if you own a sought-after premier league brand, you may be able to sell it in future at a profit to another billionaire who wants to join the exclusive club.’ Kuwaiti economist Ali Al Nemash commented, ‘It’s more of an international social presence than an economic issue. And prestige comes from popular places.’ It is important to note that Manchester City was bought as a private transaction not as a sovereign wealth investment. Gulfnews.com were told this ‘is not a purchase by a sovereign fund in the same way investments [are] made by other sovereign funds. This is not a sovereign fund investment in the definition of the International Monetary Fund.’