Matt Hulsizer, a 45-year-old from Chicago, "is by all accounts a successful financier," according to Moore & Garrahan of the FINANCIAL TIMES. In '14, he "sold OptionsHouse, an online options trading brokerage," and his stake in a hedge fund with more than $2B under management for a reported $200M.
Then he "put his money into sport." In February, he "bought a minority stake" in the NHL's Minnesota Wild. In November, after failed deals for second-tier clubs Leeds and Reading, his Peak6 investment group bought 25% of AFC Bournemouth, currently "enjoying its first season in England’s Premier League and sitting in 16th, three points above the relegation zone." In '14, Hulsizer said, "Our preference is to buy a Premier League club. That’s what is on television, it is what my kids want to watch. I have a child in college and all his friends are wearing Premier League gear. What will draw us is the money, and the media payments are substantial.”
The pulling power of the Premier League’s TV rights deal "has made even teams outside the top tier of clubs attractive to foreign investors." TV revenues "are the most tempting cherry" for Hulsizer and other U.S. investors, such as Josh Harris and David Blitzer, who each bought 18% of Crystal Palace, and for the consortium reported to be interested in buying Everton.
Domestic rights for the three years starting next season "will bring in" £5.1B ($7.5B). The overseas rights "should net" the EPL at least £3B ($4.4B).
The U.S. "is driving much of the increased interest."
GROWING VIEWERSHIP: The average TV audience per match in the U.S. last year was 480,000, rising to 1.41 million for ManU’s game against Arsenal.
In China, where interest in the game continues to grow and China Media Capital purchased a stake in Man City last month, the next EPL TV rights deal covering seasons from '19 "is set to be worth billions of pounds."
If a deal for Everton goes through, eight of the Premier League’s 20 clubs will have U.S. investors.
Pinsent Masons lawyer Trevor Watkins: “Sport has proven to be an attractive and highly successful investment option, particularly in the US. If you look at anyone who took an NBA [basketball] or NFL [American football] team they have had a substantial return in recent years." CSM CEO Zak Brown said that England’s Premier League has become “trendy” for U.S. investors. Brown: “John Henry [the Liverpool owner] is at a really serious level, but you can be in with the big boys without having to write a big cheque [by buying a slice of a smaller club]."
Lewis Silkin partner Karish Andrews represents several U.S. sport clients and said that "investors believe the Premier League can increase its revenues." Andrews: “The NFL is much more commercially driven" (FT, 1/1).
