UK soccer clubs to lure more billionaire buyers

LONDON, Nov 28 (Reuters) - U.S. billionaires will continue buying British soccer clubs for the financial returns, the glamour of sport and the appeal of its capital city, a leading sports banker predicted.

"Sports is a sexy business," Randy Campbell, head of the global sports practice at Societe Generale in New York, told Reuters in an interview. "I expect U.S. investment in British clubs to continue."

U.S. billionaires such as the Glazers, who own Manchester United, and Tom Hicks and George Gillett, owners of Liverpool, get a "return on equity and return on ego" from owning a soccer club, Campbell said.

London clubs such as Fulham, Reading, Charlton, Tottenham and Arsenal are prime targets as multi-millionaires from around the world want to enjoy the capital's glitter, he said.
"Now London is the hot place; the city is booming," he said. "London is becoming the international capital of the world. This is the place where people want to be. People like to be associated with London, and the relative similarities of culture and customs is a big factor."

Campbell's unit, involved in deals with Manchester United, the New Jersey Nets and the San Jose Sharks, is looking to add a person to its sports banking practice in London to capitalise on the opportunities, he said.

European soccer clubs are expected to increase profits over the next few years as they build new stadiums, increasing ticket and merchandising revenue, Campbell said.

"The stadium boom is already mature in the U.S.; now it's expected in Europe," he said.
Teams such as Liverpool in the U.K. and Barcelona-based Espanyol in Spain are currently planning new stadiums. F.C. Barcelona has selected leading architect Norman Foster to expand its 100,000-capacity Camp Nou.

New stadiums will allow owners to turn soccer into a "family day out" and increase revenue opportunities, Campbell said, making it more like the NFL, where almost a third of attendees are women, significantly more than in European soccer.

U.S. investors were also attracted to the loyal local support base, Campbell said. In the U.S., a football team competes with local basketball, hockey and college teams, whilst in Europe, fans support the only local soccer team, or perhaps one of the two, he said.

Interest from U.S. billionaires may spread to continental Europe, although no moves have been seen yet as cultural and linguistic similarities have kept the investors focused on the UK, Campbell said, though clubs in Europe might offer a better price.

"There are almost 30 clubs in Europe that are still undervalued," he said.