English Soccer's Global Reach Scores Big

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But Americans also are getting into the act: Tampa Bay Buccaneers owner Malcolm Glazer now owns Manchester United, while the multisport-franchise-owning pair of George Gillett and Tom Hicks own Liverpool FC.

Indeed, almost half of the Premiership clubs now are foreign-owned, but some deals have courted controversy. Last summer, millionaire Thaksin Shinawatra, the former Prime Minister of Thailand, bought the club Manchester City for an undisclosed amount. But when the Thai Supreme Court recently issued a warrant for his arrest on corruption charges, Shinawatra's continued EPL ownership was cast into doubt.

The influx of foreign owners has coincided with a rise in the number of international stars plying their trade in the Premiership. Greater broadcasting and commercial revenues have translated into larger EPL salaries (BusinessWeek.com, 8/21/08), which attract foreign players that previously might have signed for Italian or Spanish clubs. More than half of the Premiership's roughly 350 players now come from outside Britain, compared with less than one-fifth during its inaugural season.

According to Rune Gustafson, chief executive officer for the British unit of consultancy Interbrand, the EPL's global makeup helps reinforce worldwide interest in the league. Crowds in the small African country of Togo, for example, now gather around TVs to watch countryman Emmanuel Adebayor score goals for the London club Arsenal FC. Similarly, the success of South Korean Ji Sung Park at Manchester United has boosted the club's following in that lucrative market. "The Premiership brand has grown internationally because [foreign] players bring added attraction to overseas markets," Gustafson says.

Pricey Players

While foreign stars have raised the EPL's profile, players' soaring salaries also have put a strain on many clubs' finances. Since 1992, wages have risen an average of 13% per year, compared with 11% annual growth in overall Premiership revenue. Salaries now constitute almost two-thirds of clubs' total budgets. That has reduced average operating margins for EPL teams to just 6%—one-third the 18% returns notched in the rival Bundesliga. And in the 2006-2007 season, only eight clubs posted operating profits, down from 16 the previous year.

"Owners see their clubs delivering only minimal regular returns," says Dan Jones, a partner in Deloitte's Sport Business Group. The bigger payoff—typically in double digits—comes when owners sell their teams, he says.

Those economics might not sound appealing to some potential owners, but there's no doubt the Premiership's global success has given English clubs the edge over Continental rivals. Three out of the four semifinalists in the last two UEFA Champions League tournaments (a contest among all of Europe's best teams) have been English. (However, England was shut out of the UEFA Euro 2008 championship (BusinessWeek.com, 6/20/08) this year, which pits national teams against one another.) Last season, two EPL clubs reached the Champions League final for the first time.

Along with sporting success, the Premiership's economic dominance also appears here to stay. All 20 teams now rank in the top 50 of the world's wealthiest clubs, while four—including No. 1 Manchester United—make the top 10. This economic strength is only set to grow as the EPL expands its reach into more foreign markets, making English soccer a hot commodity for sports-hungry fans the world over.

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Scott is a reporter in BusinessWeek's London bureau .