For American investors there is a scarcity value around European football, particularly the Premier League.
With valuations for sports teams across the major US leagues of the NFL, NBA, NHL and MLB at a premium, and valuations in Major League Soccer ballooning beyond what some Premier League clubs are worth, American investors have looked across the Atlantic for places to deploy their capital, hoping to tap into the growing value of football clubs.
While the likes of Liverpool, Manchester United and Manchester City all carry price tags relative to their global appeal, for those clubs outside the so-called 'big six' they remain an enticing proposition, albeit one that carries more risk than in North American sports due to the existence of relegation and the financial disparity that exists between those who bank on European qualification and those who have almost had the ladder pulled up from them.
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The reason for that is, largely, the enduring appeal of the Premier League globally, a league that can now command £10bn broadcast deals domestically and internationally over its next cycle, with the potential for further revenue growth through the adoption of new technologies adding to the potential.
Everton owner Farhad Moshiri held discussions with a US consortium fronted by former Manchester United CEO Peter Kenyon and backed by Minnesota-based real estate tycoon Maciek Kaminski and American oil magnate John Thornton during the summer over a potential takeover, but after the expiry of the exclusivity period between the two parties the two sides took a step back. Discussions, as per the Financial Times, have continued but the ECHO understands that nothing has 'materially changed' from that position, although Kaminski is now operating on his own through his KAM Sports LLC investment vehicle.
The latest development has seen another party come into the picture, with the LAMF Global Ventures Corp special purpose acquisition company (SPAC) led by Los Angeles film producers and investors Jeff Soros and Simon Horsman, advised by former Everton director Keith Harris, having held preliminary discussions with Everton chiefs, according to Bloomberg. Everton have declined to comment on the reports.
But with the appreciation of the dollar against the pound making an appealing opportunity even more so for would-be investors, the US interest in the Premier League looks set to continue, and with nine of the teams having some element of American shareholding, number 10 likely won't be too far away.
While the SPAC market has receded somewhat from its boom in 2020 and 2021, a potential takeover that would result in Everton going public on the stock market raises some eyebrows.
SPACs, which had runs in the 1980s and 1990s before coming back in a big way in 2020, are blank cheque companies where founders and sponsors acquire investment via initial public offering and are then tasked with going out and acquiring a start up or merging with an existing business in the hope of value growth. Once investment is raised at the IPO, the SPAC has a definitive time frame, usually two years, to land on a target or face giving the money back to investors. The LAMF SPAC raised $253m at its IPO in November 2021.
"There are a large number of ultra-high net worth individuals who don't want their money to just sit in bank accounts, they want it put to work and given them a return," football finance expert and author of the Price of Football, Kieran Maguire, told the ECHO.
"The last two years has benefited some people significantly and seen an increased polarisation of wealth. That isn't a political comment, it is a statement of fact.
"The entertainment industry, of which sport is a part, has become increasingly lucrative and investors have become increasingly interested. There is the perception that the valuation of US sports teams is prohibitively high, especially when compared to the Premier League.
"The Premier League is where it's at and, on a relative basis, if you can buy a club for £400m then you can raise revenues and so, too, the valuation of the team. It is an attractive proposition."
A move to take the club on to the stock market may prove a little more problematic. At present there are Manchester United, AS Roma, Lazio, Celtic, Sporting CP, Borussia Dortmund, Juventus, Ajax, Benfica and Porto are publicly listed. In years past, Millwall, Birmingham City and Tottenham Hotspur have all taken the decision to delist themselves from the stock exchange.
The stock market, while presenting some options in terms of helping owners recapitalise through new share issues, can be volatile and football teams have seldom soared when going public.
Maguire added: "SPACs were flavour of the month, less so now.
"Taking a club public can present difficulties and there is a reason everyone doesn't do it. There is increased scrutiny, quarterly reporting and compliance costs for a business that may not generate a return. Then you have the pressure from shareholders.
"Manchester United are the most obvious example of a club going public, but the Glazer family are protected by the voting rights that are in place, US owners holding the more valuable 'A' shares, with the lesser 'B' shares listed.
"But take Manchester United as an example. When they were listed on the stock exchange the shares were traded at $14 each back in 2012. A decade on and they are $13.96, as of now, less than their IPO. That doesn't make for a good business pitch.
"I would be very surprised if Everton headed down this route."
Moshiri, who moved to reaffirm his long term commitment to Everton during the summer via an open letter to fans, is seeking investment to aid the completion of the club's new 52,888 seater stadium at Bramley Moore Dock, and the potential that the £500m build could bring to the club longer term will provide a greater value proposition for investors.
Kaminski and LAMF won't be the only ones taking an interest.
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