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European Football Teams Expansion Into U.S. Market Critical To Growth

Barcelona's American expansion is "critical to the club's plan" to reach about $1.2B in revenue, according to Eben Novy-Williams of BLOOMBERG. In addition to playing games in the U.S. this summer, Barça is opening a residential academy in Arizona, "part of a wider network of training facilities." Barcelona President Josep Bartomeu said, "We want to lead in the project of introducing soccer to more and more young people in the U.S." It "may be hard to imagine the U.S. as a growth market," but among football people, "America is the object of everyone's affection." There are "significantly more" football fans in the U.S. than there are people in Spain. And "unlike in India and China," America's internet, TV and social media infrastructure "makes it easy for teams -- and, importantly, their sponsors -- to reach those potential fans." Serie A side AS Roma President James Pallotta said, "It's the largest market in the world in terms of programming and advertising. You have to be here." All of Europe's top football clubs have "basically tapped out their local markets." Speaking for Barcelona, Bartomeu said, "We cannot have more supporters in Spain." That has "led everyone to the U.S., albeit with different strategies." Man City's "deep-pocketed owners" bought a Major League Soccer franchise. Bayern Munich, the first foreign team to have a permanent U.S. office, "has thrown its weight behind digital video and social media." In addition to playing in the U.S., "all clubs are jockeying to make their league games easier to watch." That is easiest for teams in the Premier League, which has an "expansive deal" with NBC, and "harder for teams like Barcelona, whose games air on Al Jazeera's beIN Sports" (BLOOMBERG, 7/31).

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