The Influence of Foreign Ownership in the EFL
LONDON, ENGLAND - MAY 29: Dejphon Chansiri, Sheffield Wednesday's Chairperson, exults alongside his squad following their triumphant ascent to the Sky Bet Championship. The joyous occasion unfolded after defeating Barnsley in the Sky Bet League One Play-Off Final, staged at Wembley Stadium on May 29, 2023, in London, England.
EFL has seen a lot of foreign investment in the last decade or so. There have been stories of both success and failure regarding foreign ownership. No one buys a club to then deliberately run it poorly, there have been circumstances when things didn’t work out and then there are also perfect circumstances where everything comes together.
Let’s take a look at some examples of foreign ownership in the EFL.
1. Dai Yongge and Reading Football Club
We wanted to start on a positive note but Reading has been in such a mess recently that one cannot just overlook the condition they are in currently.
Reading was relegated to League One after spending 10 years in the Championship and even playing Premier League football for 3 seasons since the turn of the Millenium. Such a fall from grace.
Dai Yongge has been the major contributor to Reading’s downfall. He bought the club in 2017 and promised the fans of getting the club back into the Premier League. He overspent on player wages and transfers for years.
The financial irregularities were so much that Reading had to endure three points deductions with the final deduction still ongoing. The point deduction eventually led to their relegation but that wasn’t even the worst part. Reading players’ and staff’s wages were not timely paid for months.
2. Ryan Reynolds, Rob McElhenney, and Wrexham
Ryan Reynolds has to be one of the coolest owners in football today. Imagine your owner being Deadpool. Reynolds and McElhenney have turned around the fortunes of Wrexham since they took over the club in 2020.
They also received 98.6% backing from the Wrexham Supporters Trust.
Despite being a League Two side currently, Wrexham are as mainstream as they can get. With TV deals, documentaries, and a star owner Wrexham is in a good position. Wrexham are financially stable and they just got promoted to League Two last year after pipping Notts County to the Conference title.
Wrexham recently purchased their stadium permanently. Racecourse Ground is in the process of being renovated. Renovations would mean Wrexham will also have a revamped and state-of-the-art stadium, another attraction for the club.
Wrexham currently is one of the best-run clubs in the EFL, and with Reynolds and McElhenney’s vision, they are only going to get stronger.
3. Dejphon Chansiri and Sheffield Wednesday
A promising start to the ownership has fizzled out quite a bit. Chansiri bought Sheffield Wednesday in 2014 and aimed to get the club promoted to the Premier League by 2017.
Carlos Carvehal almost pulled off that feat and too a year earlier but Wednesday was beaten in the play-off finals by Hull City in 2016.
Chansiri kept spending on managers and players in his quest for promotion but Sheffield Wednesday kept going backwards because of constant changes in personnel both on and off the field. Excessive spending eventually led to breaking EFL spending rules.
Sheffield Wednesday was handed a 6-point penalty in 2020 for the breach of spending rules and that eventually relegated them to League One. Sheffield Wednesday is now back in the Championship but the ownership issue remains as Chansiri has more doubters than believers on Wednesday. Only time will tell if Chansiri is the man to take the club forward.
4. Dude Perfect’s Investment in Burnley FC
While they are not the owners of Burnley, the investment is a surprising yet emblematic twist of modern sports financing, the popular YouTube group Dude Perfect has acquired a stake in Burnley. This investment not only marks a significant moment for Burnley but also highlights the global influence of the Premier League. Dude Perfect, initially a group of five roommates from Texas A&M University, gained fame by uploading videos of basketball trick shots and now boasts a YouTube following of 60 million, making it the world’s 27th-largest channel and the second-largest sports channel after WWE.
Why Burnley? Despite its long history, Burnley is relatively small, hailing from a small town in northwestern England with a ground capacity of just over 20,000. Historically, the club has struggled with global appeal. However, recent changes indicate a shift. Appointing Vincent Kompany as their manager and a Championship win that led to Premier League promotion for the 2023-2024 season has made Burnley increasingly attractive. American-based majority owners, ALK Capital, have invested significantly in player transfers, broadening the club’s appeal and performance.
Dude Perfect seems a good fit for Burnley. They relate to the club’s working-class demographic and see a mutually beneficial branding opportunity. With their massive young, predominantly male audience, Dude Perfect can offer Burnley something that money can’t buy: immediate access to a demographic that perfectly matches the profile of new Premier League fans.
Dude Perfect’s logo will replace that of W88, a sports betting company, on non-adult Burnley kits.
Overall, this unique partnership embodies the growing intersection of traditional sports and new media, while also underscoring the Premier League’s unyielding global allure.
Other Selective Foreign Owners and Clubs to Look For
- 49ers Enterprises and Leeds United
- Venky’s and Blackburn Rovers
- Vincent Tan and Cardiff City
- Michael Eisner and Portsmouth
- Alexander & Christoffer Reedtz and Notts County
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