THE U.S. INVASION
WHY HAS SCOTTISH FOOTBALL BEEN TARGETED BY AMERICAN INVESTORS?
ASK why American investors have acquired a sudden interest in Scottish clubs and football finance expert David Low offers three explanations. Cash, status and ego. A key adviser when Fergus McCann brought Celtic back from the brink in 1994, Low has worked with a number of Wall Street investors interested in acquiring sporting institutions. There is, he insists, no mystery to why people do these things. ‘Owning a sports franchise gets you places you would not normally expect to be,’ he said. ‘There are other benefits other than finance. I am the co-owner of Glasgow Rocks basketball team and, when I want to see any sporting event in New York, all you have to say is that you are the co-owner of a pro basketball team in Glasgow and you will get a ticket. ‘Owning a sports franchise can elevate you above a level lots of other people operate at. ‘It’s a big deal and, so long as you run it properly, you will always get somebody willing to buy it. ‘You only have a problem when you spend more than you earn. ‘If you run a football club properly you get your money and you sell it and, in the meantime, it’s a huge status symbol.’ To many, the willingness of Stateside businessmen to invest in SPFL clubs remains a source of mystification. It’s said often enough that there is no cash to be made in Scottish football. Texas-based Tim Keyes thought otherwise, installing
countryman John Nelms as managing director at Dundee. US businessman Mark Ogren purchased 85 per cent of city rivals Dundee United in a £1million deal last year. Ronald Gordon has wiped out the £3m mortgage debt at Hibs by buying out Sir Tom Farmer and chairman Rod Petrie. And Partick Thistle could be next to fall into American hands if the NewCity Capital consortium run by Barnsley and Nice owners Chien Lee, Paul Conway and Billy Beane can navigate a path through the English Football League’s Dual Interest regulations. With the English Premier League now the preserve of the super wealthy and political elites, Low believes canny investors are now seeking better value for money in leagues ripe for investment and development. Hibs and Partick Thistle, he suspects, will not be the last. ‘American investors are straightforward,’ added Low. ‘If you buy a sports franchise and run it properly you will get more money when you sell it than you had when you bought it. ‘I have acted for quite a few American investors. ‘Most of them recognise there is no value left in the English Premiership because the oligarchs and oil-rich investors have skewed the market. ‘That’s why Americans are now looking at other leagues. ‘One of the richest Americans, Frank McCourt, owns Marseille. ‘And then you have Chien Lee who owns Nice, a much smaller club.’ Predicting how younger viewers will watch and absorb football in future is a tricky science. Much of what children watch now is on tablet computers and mobile phones. Football consumption is heading the same way. ‘Television rights dominated by a few big players like Sky is breaking down now,’ said Low. ‘Netflix, Facebook and Amazon are buying rights to devices now. ‘Younger kids watching now do so on devices — they’re not looking at a big box on the wall anymore. ‘They’re not even watching a game for 90 minutes any more. It’s all about highlights, snatches, clips. ‘So everything we are used to is up for grabs. ‘And clubs like Celtic and Rangers are potentially very attractive because they have global fan bases. ‘So I think there are sensible American investors looking for value in the English-speaking world with good corporate procedures and a good legal system in place. That place is the UK. ‘You now have four teams, including Dundee, Dundee United and potentially Partick Thistle, being run by American owners. ‘And we now have our first Premiership club. ‘I expect that trend to continue and I wouldn’t be surprised if Celtic, Hearts or Aberdeen went down the same path. ‘The final aspect is that all these clubs have had long-term owners. ‘Dermot Desmond is approaching 70 now and, if anybody wants to get Celtic, they just have to buy his stake and they’ve got it. ‘If they want to buy Hearts they buy out Ann Budge and they’ve got it. ‘That’s exactly what happened with Hibs. They bought out Sir Tom Farmer. ‘Hibs, I suspect, won’t be the last club to fall into American ownership.’