LONDON - Investing in football club equities was once the domain of the staunch supporter, interested more in hanging a share certificate on the wall than making money.
But, of late, football shares have been attracting far more astute investors, as a string of businessmen have bought huge stakes in
clubs.
Takeovers - and speculation over takeovers - have served to buoy the market, yielding rosy returns for those in the right stock at the right time.
"In times past, buying footie shares has been an object lesson in how to turn lots of cash into a nice pretty share certificate and not much more - thus demonstrating your loyalty over common sense," says Simon Denham, managing director of spread betting firm Capital Spreads.
"But over the last few years Premier League club shares have experienced something of a renaissance, as more hard-headed businessmen take over in the boardroom and foreign invaders have sniffed a global brand."
Chelsea and Manchester United are already in foreign hands: Russian billionaire Roman Abramovich and US sports tycoon Malcolm Glazer own majority stakes.
Alexandre Gaydamak - son of another Russian billionaire - is co-owner of Portsmouth, and on Wednesday American Randy Lerner completed his takeover of Aston Villa.
West Ham, Newcastle United and Arsenal are the latest trio at the centre of takeover talk.
The interest in buying football clubs has been attributed to a new Premiership television deal worth nearly £700 million ($2 billion) a year from 2007 to 2010.
They are trying to control wage bills and boost revenues through ground investment - as at Arsenal - or more careful merchandising, as pioneered by Manchester United.
Britain's laid-back attitude to foreign ownership has also served to attract overseas investors.
- REUTERS
