Hollywood actor Ryan Reynolds owns a football club, you can too
Les Reed is the founder of Reed Consulting and also a board advisor to Wrexham FC. 'There is a lot of misunderstanding around why people invest in football clubs, and some don't ask themselves that question.' There are many reasons someone might buy a club – as an investment opportunity, to raise a personal profile, ego, to diversify assets, and as a form of fun and entertainment. It could be a combination of all the above. 'But I have never met an investor who did not want return on investment (ROI) in some form and never one that was happy to lose money,' added Reed.
Charlie Methven, a former co-owner and executive director of Sunderland FC, said: 'Buyers tend to have made their fortune in other industries and tend to bring a somewhat unwarranted self-confidence to buying a football club despite having no background in football.' He advised buyers to partner with someone who has been through the whole journey before, both to assess the market and to engage in proper due diligence that addresses the particularities of football.
England is prime hunting ground, given it has more than 90 professional clubs spread across four divisions. Some are worth billions like the Premier League's Manchester United while others like Cheltenham Town in League Two are valued at just over £3 million.
'There are always clubs for sale. Some owners quietly put their clubs up for sale waiting patiently for the right price, while others become distressed (due to a relegation, or financial difficulties), which can force a sale process,' said Jordan Gardner, a consultant at sports intelligence firm Twenty First Group.
Even clubs that appear stable can often be on the market quietly, looking for new investment to secure their future. 'Whether on the open market or not, I suspect that at least 75 per cent of clubs would be open to either a full-sale conversation or, at the very least, a discussion around strategic investment,' claimed Professor Rob Wilson from the University Campus of Football Business.
What to look for
'Start with the basics: what's coming in, what's going out, and what's being wasted. Can you grow sponsorship? Is there potential to increase matchday revenue? Have they sold players for profit before? What are the fixed costs and can you afford to cover them until revenue grows?' asks Simon Leslie, a media owner and chairman of Eastbourne Borough FC.
When it comes to looking at a football club's finances, experts will analyse revenues (matchday and non-matchday), expenses (specifically player wages) to gauge profit and loss, and cash flow. For smaller clubs, it's useful to drill down into its matchday income, which includes ticket sales and food and beverage sales. It should also include any commercial deals and media rights distributions. Another important source of income is from player trading — revenues derived from selling players in the transfer market. Les Reed said not to forget non-matchday income — from events, concerts, conferences, and tours as the stadium is often underutilised and an area for growth.
While revenue and expenses are essential parts of any business, football experts warned not to treat a club as a normal business. 'Your revenues can be unpredictable and reliant on sporting performance, and the landscape is highly competitive both to acquire a club and to be successful,' added Gardner, who is a former CEO of Danish professional football club Helsingør. Assess all existing debts and liabilities at the club and evaluate the value of tangible assets like the stadium and training facilities, plus intangible assets such as player contracts and brand value.
Reed's company specialises in due diligence and carefully going over the finances, performances, and staff in great detail. But even then, he admits that football clubs are sporting organisations competing in a game of chance. 'A great business strategy can fail due to a failed attempt on goal, a red card at a crucial moment, hitting the post or missing a penalty, let alone a wrong refereeing decision.'
The classic mistake is underestimating how emotionally charged and unpredictable football is. 'Buyers often think in pure business terms or try to appease a fan base through emotionally driven player acquisitions,' added Wilson. 'Another common error is overestimating how quickly success can be bought; sustainable growth takes patience and proper infrastructure.'
Making money
It may be a shocking figure but only around 10 per cent of football clubs are profitable. But Gardner puts it into context. 'Many clubs aren't trying to be profitable, either because that is not the goal of their owner, or because they have other motivations.' Generally, the clubs that manage their cost basis well (keeping their player wage bills under control) and the clubs that have a strong system of developing and selling players are the most profitable. 'Don't fall in love with the badge until you've opened the books. People get swept up in the romance and forget that most clubs lose money every single month,' added Leslie. 'Football isn't just a business. It's a tribe, a community centre, and sometimes a therapy session all rolled into one,' he joked.
Wrexham has proved to be a turnaround story worthy of a Hollywood movie, but there have been plenty of others. Brighton, Brentford, Plymouth Argyle, Leyton Orient, Stockport County, and Luton Town are all considered clubs that were at rock bottom but have been rejuvenated without spending silly money. Leeds United, who are owned by 49ers Enterprises, with minority investment from Red Bull, and a host of celebrities, including Michael Phelps, Russell Crowe and Will Ferrell, have just been promoted back into the Premier League.
Methven, who is now the managing director of Mount Pleasant FA in Jamaica, added: 'Obviously, I would say what I did at Sunderland. The club was £160 million in debt and losing
£27 million per annum. Four years later, the club was debt free, break-even, and had been promoted, at which point we sold the club at a significant profit.'
The Wrexham effect
Wrexham has enjoyed huge success on and off the field since being bought by its wealthy Hollywood owners. The club has enjoyed promotion in three successive seasons and its value has increased by more than 50 times. The documentary Welcome to Wrexham has won eight Emmy awards and given the club a global fanbase. Many investors, particularly from North America want to try and replicate its success. 'Unfortunately, the model is extremely difficult if not impossible to replicate as Reynolds and his group have brand, media (via their documentary) and global appeal that others simply don't have,' said Gardner.
Wrexham's story does highlight the power of community and fan engagement in the success of the football club. Indeed, community engagement builds loyalty, boosts matchday revenue, and increasingly attracts sponsors who want authentic connections. Think of them as your unpaid marketing team, your brand ambassadors, and your frontline support.
Sponsorship
Football clubs offer a range of sponsorship deals that include being the main shirt sponsor and billboards around the pitch. This month, Chelsea FC signed a short-term sponsorship deal with DAMAC to appear on the front of its shirts. For smaller clubs, the sponsors tend to be hyper local brands. For example, Wrexham was sponsored by local firm Ifor Williams Trailers before it was replaced by TikTok and then, United Airlines.
But in this increasingly digital world, clubs need to catch up. 'Brands no longer just want their logo on a shirt. They want access, content, clicks, and stories. We've built a digital platform with over 365,000 highly engaged followers not just in Eastbourne, but worldwide. Don't think in terms of 23 home games. Think in terms of a 365-day-a-year brand,' advised Leslie.
'Clubs must adapt by enhancing their online presence, engaging with local and global audiences, and offering data-driven insights to attract new potential sponsors,' said Elliot Stroud, chief executive of Network.fc, which links football clubs with investors.
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