Do owners have too much power in modern football?
The Premier League is a fertile ground for acquisitions. The high cost of success in the league means investors with deep pockets have ample opportunities for cherry-picking the acquisitions. Almost by default, these investors have a global flavour. The issue is not if foreign ownership is good or bad for English football; a more pertinent question would be to ask the investor: “What do you want out of your investment?”
Some investors are attracted by the global visibility of brand EPL and seek to leverage this visibility to benefit the existing businesses. Others are true investors; they try to first understand the business and then build on its heritage and value. For others, it seems it’s just a novelty – a feather in their cap. Recent history shows that each type of acquisition has its own share of success and failure.
You only have to look as far as leading clubs such as Chelsea and the two giants from Manchester to identify successful clubs that are foreign owned. The clubs are well run and have a sustained history of excellent results on the pitch and a sustained increase in net worth. The ownership is adding value while respecting the heritage of the club. The club works in a stable environment.
On the other hand, fans at Nottingham Forest, one of the oldest clubs, were aghast when the new owners sacked the club’s well-respected and progressive coach Sean O’Driscoll. It didn’t help matters that his replacement, Alex McLeish, left a few weeks later. Clearly the club is in a state of flux.
The M1 Group is a diversified conglomerate investment holdings based out of Beirut, Lebanon. The group is headed by Najib Mikati, who is a two-time prime minister of Lebanon and the founder of Investcom. Investcom, a telecom company started in 1982, grew into a regional telecom powerhouse over the next 20 years. By 2005, it had a subscriber base of 300 million across 12 countries and three continents. In June 2006, South African telecom giant MTN bought Investcom for US$5.5 billion. Najib Mikati’s nephew, Azmi Mikati, is the CEO of M1. He shares two passions with his uncle. The first is a passion for football, and the second is building value in the businesses they own. You can learn more about Azmi Mikati, chief exec. Of M1 Group, here.
Blackburn Rovers is another example of a foreign owner with a chequered management record. From sacking the widely respected Sam Allardyce to a loud and self-destructive PR exercise that earned ridicule both on and off the pitch, the continued sense of unease at the club, over time, diminishes both performance and value.
Foreign ownership of football clubs can be good both for the club and the sport. Power will vest with the ownership – that is a fact. Success lies in the nuances of how that power is used. A desire to build value, to respect and add to the heritage, to keep in touch with ground realities, and, most importantly, to respect the fans who keep the turnstiles turning, is the key to success.
