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Soccer Clubs Seen as Billionaire `Trophies,’ Deloitte Says

Top soccer clubs are becoming the “trophy assets” of international billionaires seeking capital gains rather than annual profit, accountant Deloitte & Touche LLP said in its Annual Review of Football Finance.England’s Premier League, the world’s richest, generated revenue exceeding 1.5 billion pounds ($2.97 billion) in 2006-07, Deloitte said. Double-digit wage inflation led to a second straight year of falling operating profit and record pretax losses, however.

Most of the 11 percent increase in clubs’ record income was plowed back into squad improvement, delivering “minimal regular returns” to owners such as Manchester United’s Malcolm Glazer, Chelsea’s Roman Abramovich and Tom Hicks and George Gillett at Liverpool, Deloitte said.

“We are seeing football clubs treated as `trophy assets,’ except with clubs now owned by billionaires from a range of nationalities, rather than local businessmen made good, reflecting the global appeal of the game,” Deloitte said. “The key strategy for earning a return from owning a club appears to be brand value and long-term asset appreciation.”

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