New York: The majority of sports franchises and teams used to be family businesses, but today, despite the worldwide economic downturn, investment funds and consortiums are the ones purchasing them.
Todd Boehly led a team to purchase Chelsea for £4.25 billion ($5.3 billion) in May, making him the most recent American millionaire to do so.
As a member of the consortium, the California financial firm Clearlake will possess a majority stake in Chelsea, with Boehly assuming leadership after Roman Abramovich, a Russian businessman, placed the organisation up for sale.
In doing so, the co-owner of the Los Angeles Dodgers defeated 11 other bidders, demonstrating the importance of the Premier League’s global brand as a source of lucrative broadcast and merchandise income.In 2019, Boehly said to Bloomberg, “It’s the highest-quality play, it’s the top players.” Additionally, a media market that is still growing exists.
Leading Premier League teams, according to some financial analysts, might be valued more than £10 billion in ten years.
This explains the rise in financial consortiums that are keen to participate in the activity, not just in the English top division.
According to David Gandler, institutional investors are investing more money in sports.
