Monday, December 11, 2006

Foreign Ownership in the Premier League

On November 21 2006, Icelandic businessman Eggert Magnusson took control of West Ham United. In buying the London club,he joined a growing list of foreign owners who are willing to gamble large sums of money on making money in the EPL.

Are these owners passionate about football, do they have the sport's best interests at heart and are fans even considered an important element? These are important questions that supporters and administrators of the game need answered, the majority of these owners are secretive and rarely grant interviews.

Fulham: Mohamed Al-Fayed
Where they were then: 1997 in the Second Division
Where they are now: 10 in the Premiership
He has been a controversial figure in England throughout his 3 decades there. The Egyptian-born businessman has brought great success to the West London club as they're now a regular in the elite after brushing with disaster in the '90s.

Al-Fayed's original goal was to make the Cottagers the Man United of the south and he showed his commitment and passion in the early days by investing $60 million in the team between 1997 and 2003. Unfortunately, the outlay didn't generate the results required to see Fulham bring home trophies and Al-Fayed closed the purse strings. With a limited budget, boss Chris Coleman has worked miracles keeping the team in the elite and with Al-Fayed now residing in the tax haven of Monaco, the club is nothing more than a business.

Conclusion: I think Al-Fayed did genuinely see Fulham as a love affair and that he did have a soft spot for football. However aggravation with the British authorities over his citizenship soured his relationship with England.

Portsmouth: Alexandre Gaydamak
Where they were then: 1998 in the First Division
Where they are now: Fourth in the Premiership

Milan Mandaric gets plenty of the credit for Pompey's recent resurgence. In 1998, they were languishing in the First Division and going nowhere until Mandaric bought the club and began to invest cash. The hiring of Harry Redknapp was a key move and promotion to the Premiership was a richly-deserved achievement. Mandaric had bigger plans for Pompey in terms of a new stadium and after battling the local council for years, couldn't take the bureaucracy and gave up selling the club to French businessman Alexandre Gaydamak.

Gaydamak arrived just in the nick of time as his $30 million injection of cash during January gave Redkanpp a war chest that enabled Pompey to escape the jaws of relegation. It is not known whether Gaydamak is a true fan, although he does have football in his background, his father owns Israeli side Beitar Jerusalem FC.

Conclusion: From near liquidation to the Premiership is quite a feat. It is not known exactly how much Mandaric sold for or made on Pompey, however, he recently tabled a $50 million bid for Leicester City. Judging from the smile on his face, I think he made a tidy sum. Gaydamak, after his initial spurt of cash in January, has asked Redknapp to do a spot of bargain-basement shopping. But qualification for Europe will be the acid test. If Portsmouth does make it to the 'Promised Land' and Gaydamak doesn't up his investment, that will tell the real story.

Chelsea: Roman Abramovich
Where they were then: 2003, Fourth in the Premiership
Where are they now: Second in the Premiership (Winners in 2005 & 2006)

Roman Abramovich has changed the face of football with his wealth. According to Forbes, he is the 11th richest person in the world with an estimated fortune of $18.2 billion. This makes the $1 billion investment to date in Chelsea fairly substantial. It does appear though that money is no object to Abramovich in his quest to make the Blues the best team in the world. World-class players are routinely bought and sold regardless of profit and loss and Abramovich just smiles beatifically from the stands.

Conclusion: Abramovich appears to be becoming more 'hands-on' depending on which rumor you choose to believe. Although this would not be in the best interests of the club, without his money, Chelsea would simply collapse. Ultimately, I'm not sure the Russian is good for English football because his money has sent the economics out of whack but he sure is good for the Blues. Chelsea is Abramovich's 'rich-man's hobby' but I do believe he loves his football.

Manchester United: Malcolm Glazer
Where they were then: 2005, Second in the Premiership
Where they are now: 2006, First in the Premiership

US$1.4 billion is a steep price to pay for anything let alone something as unpredictable as a football team. However, Glazer has been successful in most of his 'business' ventures and that is exactly what this investment is a business. If Glazer was a football fan he kept it very quiet and he's never been to Old Trafford. His sons represent him and despite an initial hostile reception from the OT faithful, results have gone their way this season.

Conclusion: Glazer has taken on a mountain of debt to buy United and will want to see a healthy return on his money. To be fair, he has speculated by increasing the capacity of Old Trafford by 10,000 and giving Sir Alex Ferguson some funds for transfer activity. As for passion of the game goes,Glazer cares more for the oval 'pigskin' and the Tampa Bay Buccaneers.

Aston Villa: Randy Lerner
Where they were then: Perennial underachievers
Where they are now: 2006, Eight in the Premiership

One wonders why Lerner made his $130 million bid for Villa. It seems a strange move to test the waters of the EPL. There is no doubt that he has brought a new lease on life to Villa Park but he hasn't exactly dumped a sack full of cash on the floor of Martin O'Neill's office.

Conclusion: A background in investing and the NFL hardly seems like ideal preparation for swimming with the sharks of the EPL.

West Ham United: Eggert Magnusson
Where they were then: Nov 2006, Eighteenth in the Premiership
Where they are now: Dec 2006, Seventeenth in the Premiership

Magnusson comes across as someone who loves football because it is a part of his life. He is the President of the Icelandic FA and a member of the UEFA Executive Committee. He'll have a 'hands-on' approach to running the club after spending $170 million! This should make for some interesting clashes with manager Alan Pardew.

Conclusion: It's too early to tell what effect Magnusson will have but I believe he'll have the interests of English football and West Ham close to his heart.

If reports are to be believed, it is Liverpool. Dubai International Capital, a company owned by Dubai's ruling Maktoum family, looks to have usurped the Kraft family, owners of the New England Patriots and New England Revolution, as well as businessman George Gillett, who has a passing interest in the round-ball game.

Don't count out Reading either as their owner, John Madejski, recently stated that he would be willing to sell the club if the right bid came along and the same goes for Newcastle United.

I just hope that these gentlemen realize it is not just a monetary gamble — buying a football club is a monumental commitment. Football clubs represent a way of life to the respective supporters.Don't break their hearts or play them for fools just because the EPL is a hot property. Without the atmosphere of the fans and packed grounds, it's just 22 men running around in shorts chasing after a ball.