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English football is becoming accustomed to foreign tycoons buying its biggest Premier League clubs, but arguably the most astonishing deal of them all was mooted yesterday as it emerged that the billionaire American tycoon, Paul Allen, one of the world's wealthiest men, is working on a £50 million
($134 million) takeover bid for Southampton, who currently play in the second-tier championship.
Allen has had no previous involvement in football, although he does own an American NFL team, the Seattle Seahawks, and a basketball franchise, the Portland Trail Blazers. He is, however, rich. Stupendously rich.
And if a takeover for the south coast club goes through, he has the potential to transform them into the kind of top-level challengers that their long-suffering fans have only ever been able to dream about.
Estimates of Allen's personal fortune vary between £10 billion and £20 billion, depending on whether all his assets or just his cash are taken into account. Whichever method is used, he is wealthier than the Russian oligarch, Roman Abramovich, who owns Chelsea (and struggles by on a fortune of £9 billion).
Allen stands at No 6 on the Forbes list of private billionaires, which excludes heads of state whose wealth is tied to their position. Abramovich is No 11.
There has been no official confirmation about a bid yet from Allen himself, but Southampton's board issued a statement to the Stock Exchange yesterday that said "we have received and are considering a preliminary approach".
A well-place source told the Independent that Allen was putting together an offer that was "absolutely serious and should materialise sooner rather than later".
Southampton's share price surged almost 35 per cent after the board's statement, rising 16.5p to 64p and valuing the club at £18 million.
Foreign billionaires have flocked to English football in recent years.
America's Malcolm Glazer owns Manchester United. His compatriot Randy Lerner owns Aston Villa. Another US pair, Tom Hicks and George Gillett Jnr, have just bought Liverpool.
Stan Kroenke, a Denver billionaire, has bought into Arsenal.
West Ham and Portsmouth are owned by Icelandic and Russian tycoons.
All of them see potential in the global pulling power of Premier League football, and in the attendant riches that brings.
From next season, the bottom club in the top division will be guaranteed £30 million a year in television income alone, not to mention the tickets, replica shirts and pies.
Southampton, whose only major trophy in their 122-year history was the 1976 FA Cup, are currently seventh in the Championship and could theoretically win promotion to the Premier League via the play-offs this season.
Allen sees long-term potential whatever happens, according to sources, because of the club's large catchment area, modern stadium and nearby land that could be developed into a major entertainment facility. "Southampton also appeals as somewhere to park his boats," said one source.
Allen, 54, hails from Seattle and amassed his fortune primarily through co-founding Microsoft with Bill Gates.
He is famously philanthropic, having donated billions of dollars to good causes around the world.
He has also invested in property, film studios, development of a suborbital commercial spacecraft and has wide media interests, especially television.
- INDEPENDENT
