In recent years, there has been a notable surge in American celebrities and investors acquiring stakes in UK sports teams, especially within football. This trend is reshaping the landscape of British sports ownership, blending Hollywood and US commercialisation with the values of traditional British sporting institutions.

This article is part of a series that will investigate this current trend and will consist of the following topics:

1. What are the current investment trends in UK Sport?
2. What corporate structures are used?  
3. How to buy a football club?
4. How to get the purchase over the line?
5. So you own a football club, what next?
6. How to exit?

UK sport, particularly football, is seen by American investors as a market with great commercial and investment potential. U.S. leagues such as the NFL, NBA, and MLB thrive on lucrative sponsorships and partnerships, but English football’s deep-rooted sporting traditions often make their institutions resistant to change, especially in the lower leagues.

However, since its inception in 1992, the English Premier League has shifted the approach to commercialisation at the top levels of English football, but this culture shift has not yet been adopted by the whole pyramid, with those lower down hesitant to change. US investment consortiums that are spearheaded by Hollywood stars and US sport superstars are beginning to fast track fan approval and change traditional norms across all the leagues.

High-profile acquisitions

There have been a number of high-profile acquisition in recent years, with probably the most famous being actors Ryan Reynolds and Rob McElhenney purchasing Wrexham AFC in 2021. Their hands-on involvement and the subsequent success of the club, documented by the hit series “Welcome to Wrexham” on Disney+, has inspired other celebrities to explore similar ventures.

NFL legend Tom Brady acquired a minority stake in Birmingham City FC in 2023, aiming to leverage his expertise in health, wellness, and recovery programs to benefit the club.

Similarly, another NFL star J.J. Watt and his wife, professional soccer player Kealia Watt, invested in Burnley FC, emphasising their commitment to both the men’s and women’s teams. NBA superstar LeBron James has also been involved English Football since 2011, initially acquiring a 2% stake in Liverpool FC for $6.5mn, which he later converted into a share of Fenway Sports Group, the club’s parent company, which is estimated to be now worth around $100mn.

Actor, Michael B. Jordan, ventured into sports ownership, notably becoming a minority owner of AFC Bournemouth, in December 2022, through his minority shareholding with a consortium led by American businessman Bill Foley. Demonstrating his commitment to the club, Jordan collaborated on designing special edition kits for AFC Bournemouth.

Motivations behind the investments

There are several key factors that drive this growing interest:

• Global appeal: The English Premier League and the broader UK football system boast a massive international following, offering investors a platform to enhance their global presence.

• Financial opportunities: Investors are attracted by the potential for significant returns through broadcasting rights, sponsorship deals, merchandise sales, and the possibility of club promotions to higher leagues.

• Personal passion: Many celebrities have a genuine love for sport and the competitive buzz that ownership provides them a way to engage with the sport beyond being a mere investment asset.

Other sports:

U.S celebrity interest in UK sport doesn’t stop at football. There has been interest across the sporting sphere, namely:

• Formula 1 – Alpine F1 Team: In June 2023, actors Ryan Reynolds and Rob McElhenney, along with actor Michael B. Jordan, invested €200 million for a 24% stake in the UK-based Alpine F1 Team through a consortium, including Otro Capital and RedBird Capital Partners. Later that year, prominent athletes such as NFL stars Patrick Mahomes and Travis Kelce, golfer Rory McIlroy, boxer Anthony Joshua, and footballer Trent Alexander-Arnold joined the investment group, further enhancing the team’s profile.
• The E1 Series – an all-electric powerboat racing championship has attracted significant investment from American celebrities and athletes. Tom Brady, Will Smith, and Steve Aoki have all invested in the E1 Series as team owners, expanding their influence into sports ownership.

Impact on clubs and communities:

The infusion of celebrity status and capital has tangible benefits:

• Enhanced visibility: celebrity involvement brings global attention to clubs, often leading to increased merchandise sales and a broader fan base. The enormous success of Liberty Media’s purchase of Formula 1 and phenomenon that is Netflix’s Drive to Survive has created a new found global interest in the sport.

• Community engagement: investors often engage in community initiatives, fostering goodwill and strengthening the club’s local ties.

• Commercial growth: the association with high-profile figures can attract lucrative sponsorships and partnerships, mirroring the transformative impact seen at Wrexham and Bournemouth under celebrity-backed ownership.

The trend of American celebrities and investors acquiring UK sports teams shows no signs of slowing down. As more high-profile figures recognise the multifaceted benefits of such investments, the convergence of entertainment, sports, and business is likely to become a defining feature of the UK’s sporting landscape for years to come.

If you are considering investing in a UK sports team, or advising someone who is, it is important to understand the legal and commercial landscape. For further information or advice please get in touch with Joshua Easterbrook, joshua.easterbrook@blasermills.co.uk, or Sebastian Annable, sebastian.annable@blasermills.co.uk.