American owners will 'hope for it all blow over'

Yesterday's dramatic scenes at Manchester United have captured plenty of media attention and reflected the frustration of the club's fans, but what impact will they have on the Glazers 3,000 miles away.   For them, their commercial interests come first.   This in turn are affected by a changing tax environment in the US.

Speaking to The Athletic, a financier who has helped several entrepreneurs buy and sell sports teams said he “can’t imagine” a circumstance that would see the Kroenkes, or any of the other American owners of the Super League clubs, sell up.

Jordan Gardner, a US investor who owns shares in Denmark’s Helsingor, Championship side Swansea and Dundalk of Ireland commented: “They’ve taken the reputational hit, some of them have apologised and they’re ready to move on. Guys like (Manchester United owners) the Glazers and Kroenke were not particularly engaged with their clubs, so I don’t see the fan backlash affecting them much. It’s highly unlikely any of these owners look to sell as a direct result of recent events, especially as we now see the light at the end of the tunnel when it comes to COVID-19.”

New Ipswich owner Brett Johnson agrees. “I don’t think any of (the Americans who own would-be European Super League clubs) will sell,” the Los Angeles-based investor says. “They will lay low and hope for it all to blow over.”

"I'd argue there is always a price for the Glazers and Fenway but, with taxes rising in the US, that increases their ask, which leads to only sovereign wealth funds and the 50 richest people in the world being able to afford it,” says Barnsley owner Paul Conway, whose Pacific Media Group also owns clubs in Belgium, Denmark, France and Switzerland.

Capital gains tax has been 15 per cent in the US but will be rising. President Biden is asking for it to be 43 per cent for the wealthiest, which will make it much tougher to sell these clubs. They may all say, ‘Let’s wait for five or 10 years, when the tax is lowered again’.”

Liverpool chairman Tom Werner said it would take an “insane offer” to persuade FSG to cash in on a club that was turning a tidy profit before the pandemic struck, as well as winning trophies. And the Glazers have made little secret of the fact they would flog a little bit more, perhaps as much as 20 per cent, but have no desire to give up a cash cow that returned to profit in the final quarter of 2020, despite playing behind closed doors at England’s biggest club ground.

The way forward in terms of examining different forms of fan involvement and more effective regulation of the game is through the review being conducted by former sports minister Tracy Crouch.