Axios Sports, By Kendall Baker ·Sep 22, 2020

️ European soccer attracts U.S. investment

American investors are increasingly taking advantage of the lucrative opportunity that is European soccer ownership, Axios’ Jeff Tracy writes.

• Driving the news: The Krause family, which made its fortune running convenience stores across the Midwest, acquired a 90% stake in Italian soccer club Parma last week in a deal that values the club at more than $100 million.
• Parma’s past two decades have been chaotic, flirting with bankruptcy and declaring insolvency in 2015. But after three straight promotions, they’re back in Serie A (Italy’s top division).

The state of play: Three of Europe’s top five soccer leagues have some semblance of American ownership.

• Premier League (England): Arsenal (Stan Kroenke); Aston Villa (Wes Edens); Crystal Palace (Josh Harris and David Blitzer); Fulham (Shahid Khan); Liverpool (Fenway Sports Group); Manchester United (The Glazer Family). American investors also hold 10% stakes in both Leeds United and West Ham.
• Serie A (Italy): Fiorentino (Rocco Commisso); Milan (Elliott Management Corporation); Parma (Krause Group); Roma (Dan Friedkin).
• Ligue 1 (France): Bordeaux (General American Capital Partners, King Street Capital Management); Marseille (Frank McCourt).

By the numbers: 23 of the 100 most valuable soccer clubs in the world — and six of the top 30 — have American ownership, per Soccerex.

Between the lines: Investing in lower-tier clubs can yield huge returns, with TV money skyrocketing as clubs earn promotion to more competitive divisions.

• 11 teams in lower divisions of the English, Italian and French leagues have American owners.
• Danish club Helsingør made just $15,000 in broadcast revenue last season, but after winning its division in July, the American-owned club will see its share of broadcast revenue increase 30x, to $455,000.

Of note: Moneyball guru Billy Beane holds minority stakes in multiple European clubs and is co-leading a new special purpose acquisition company (SPAC) that intends to buy a stake in a major English club — possibly Liverpool, per the New York Post.

The bottom line: Though the pandemic has temporarily put a damper on even the most valuable clubs, the financial windfall spurred by soccer’s uniquely global nature makes this an even better time to invest in the beautiful game.