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#Post#: 154099--------------------------------------------------
'I just can't fathom why American investors interested in Prem
Rugby'
DIR By: deadlyfrom5yardsout
Date: May 13, 2026, 1:11 am
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It's great to see - but I can't say I get it
Ollie Phillips www.cityam.com
Former England Sevens captain Ollie Phillips is the founder of
Optimist Performance. Follow Ollie @OlliePhillips11
It is great to see that an American investor is set to take over
Exeter Chiefs; it marks a new point of interest for Prem Rugby
after Red Bull and Sir James Dyson from this side of the pond
invested in Newcastle and Bath respectively.
And we must not underestimate the power of US involvement
because it signals a step change in how one of the most active
sports investor markets sees European rugby.
But I can't say I get it.
First and foremost is the lack of profit rugby provides. Even
the most successful Prem Rugby club made a loss in its most
recent results, and the idea of coming into a sport like rugby –
where stadiums aren't always full – and turn a profit in the
short-term is for the birds.
Critics would argue that profits in the Premier League and
Championship are equally sparse, while investments in The
Hundred will take years to recoup. But each of those leagues has
a potential audience – when you factor in Indian interest in
cricket – of more than 1bn, making brand value as useful to
investors as the details of any profit and loss account.
Then you look at the loss of cash from the outset; CVC Capital
Partners acquired a 27 per cent stake in Prem Rugby's parent
company in 2018. That's a significant chunk of league-wide
revenues heading out of the door before any wannabe owner gets a
sniff.
And then there's the structure. The buy-in, buy-off franchise
structure in North America will be the dream scenario here in
England – where new franchises pay way above market value for a
piece of the pie while sellers get inflated sums when they
choose to cash out – but the numbers are tiny.
The general rule of thumb in the third and fourth tiers of
English football is that a club is worth roughly 1.5x revenue.
Can rugby really claim the same, even in the top tier? The only
financial deal we have to go off is Dyson's investment in Bath –
and that included debt for equity arrangements. We're in the
dark.
What is certain, however, is that any investment into Prem Rugby
should be welcomed. Besides the Six Nations – and no matter what
many want to believe about the French Top 14 – there is no
competition better than the English top flight at the moment.
The contests are of a ding-dong nature with points galore, the
domestic and international players are attractive to watch, and
the final is always a great showpiece day. Throw in a reasonable
desire to have 10 big games across each season, including the
final and potential neutral semi-finals, and there's a lot going
for the league.
I just can't fathom why, financially, the institutional capital
and tech bros in the US fancy buying the Tony Rowes of this
world out of their clubs.
#Post#: 154100--------------------------------------------------
Re: 'I just can't fathom why American investors interested in
Prem Rugby'
DIR By: deadlyfrom5yardsout
Date: May 13, 2026, 1:14 am
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This.
Investors will take any money out of the game. This is no better
than HRH's daft idea.
#Post#: 154107--------------------------------------------------
Re: 'I just can't fathom why American investors interested in
Prem Rugby'
DIR By: Camquin
Date: May 13, 2026, 2:58 am
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Owning an American franchise not only gives a return, it gives
the owner a cachet. They get the coverage that is otherwise
reserved for Tim Cook and Jensen Huang. You get access to
Presidents and Governors.
You get some of that if you own a top flight Soccer club, but
Rugby is not the major sport anywhere.
I would rank it closer to the National Lacrosse League than to
NFL.
#Post#: 154109--------------------------------------------------
Re: 'I just can't fathom why American investors interested in
Prem Rugby'
DIR By: Rugbycat
Date: May 13, 2026, 3:30 am
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They believe that the clubs are undervalued and will increase in
value , and that media rights and merchandise should bring in
more than they do.
It is like an auction, if only one person wants an item, it does
not reach its reserve or just sells for very little if multiple
people bid on an item, it often sells for more than it is worth.
If there are more investors than clubs available, the value
increases, Exeter were profitable before Covid and the Ukraine
war, caused the cost of living crisis.
#Post#: 154122--------------------------------------------------
Re: 'I just can't fathom why American investors interested in
Prem Rugby'
DIR By: FrostAndFire
Date: May 13, 2026, 8:03 am
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They could also, as hedge funds, for instance, are wont to do,
just dump a whole lot of debt on the clubs after acquiring them.
I don't actually think that's what they're doing. I think, like
Red Bull, they are trying to build up stables of sports for
cross promotion, prestige, and various money making schemes that
I suspect they understand far more than any of us do.
#Post#: 154141--------------------------------------------------
Re: 'I just can't fathom why American investors interested in
Prem Rugby'
DIR By: deadlyfrom5yardsout
Date: May 14, 2026, 12:44 am
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Fair point. I must admit to looking at the matter in isolation.
#Post#: 154155--------------------------------------------------
Re: 'I just can't fathom why American investors interested in
Prem Rugby'
DIR By: JammyGit
Date: May 14, 2026, 4:24 am
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What does the history of US investment into English sports teams
tell us is most likely to happen?
#Post#: 154157--------------------------------------------------
Re: 'I just can't fathom why American investors interested in
Prem Rugby'
DIR By: Yareet
Date: May 14, 2026, 4:29 am
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--- Quote from: JammyGit link ---
>
> What does the history of US investment into English sports
teams tell us is most likely to happen?
>
--- End Quote ---
HTML https://www.bbc.co.uk/sport/football/articles/cn7pdmex35zo
#Post#: 154160--------------------------------------------------
Re: 'I just can't fathom why American investors interested in
Prem Rugby'
DIR By: JammyGit
Date: May 14, 2026, 4:46 am
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--- Quote from: Yareet link ---
>
>
HTML https://www.bbc.co.uk/sport/football/articles/cn7pdmex35zo
>
--- End Quote ---
That's definitely not a bad outcome, but that's more of the
personal project than anything we're expecting from the US
incursion into rugby, no? i.e. it's more like Bruce Craig than
an American Red Bull.
Looking at the guys who are investing into Exeter, they own AFC
Bournemouth and appear to have kickstarted a period of renewed
success as a result. There is a long and exhaustive report on
their finances from their most recent information here
HTML https://theesk.org/2026/05/11/the-analysis-series-afc-bournemouth-limited-annual-report-and-financial-statements-for-the-year-ended-30-june-2025/<br
/>and I am not equipped to understand whether they're in an
actually healthy position, albeit the owners have indeed plowed
money into the club and seen success as a result.
#Post#: 154163--------------------------------------------------
Re: 'I just can't fathom why American investors interested in
Prem Rugby'
DIR By: Yareet
Date: May 14, 2026, 6:23 am
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--- Quote from: JammyGit link ---
>
> That's definitely not a bad outcome, but that's more of the
personal project than anything we're expecting from the US
incursion into rugby, no? i.e. it's more like Bruce Craig than
an American Red Bull.
>
> Looking at the guys who are investing into Exeter, they own
AFC Bournemouth and appear to have kickstarted a period of
renewed success as a result. There is a long and exhaustive
report on their finances from their most recent information here
HTML https://theesk.org/2026/05/11/the-analysis-series-afc-bournemouth-limited-annual-report-and-financial-statements-for-the-year-ended-30-june-2025/<br
/>and I am not equipped to understand whether they're in an
actually healthy position, albeit the owners have indeed plowed
money into the club and seen success as a result.
>
--- End Quote ---
I fully appreciate that Wrexham is an extreme example. I just
happened to have read the article yesterday so it felt pertinent
to your question. I was also going to mention Liverpool finally
winning the EPL.
The romantic in me hopes that anybody taking on investors will
be use Wrexham as the expectation - perhaps not to the same
level but certainly a genuine interest in supporting the club
from the ground up.
And "American" Red Bull?
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