Are investors souring on elite soccer assets?

investmentnews.com:

The Premier League has been a rich hunting ground for Americans over the past two decades, with almost half the 20 clubs under their control as it started a new season. The interest was turbocharged when a group led by billionaire Todd Boehly acquired Chelsea two years ago.

But they’re now souring on English football, according to seven people involved in buying and selling teams. And interest has particularly waned amid Chelsea’s struggles, some of those familiar with the market said. That’s despite spending more than £1 billion ($1.3 billion) on players.

The group — a mix of advisers and investors in the US and UK — said financial losses and little progress on limiting overspending on squads has turned US investors off what’s often considered the world’s most popular sports league. There’s also the risk of not qualifying for lucrative European competitions or, even worse, getting relegated to the second tier.

Meanwhile, putting money into US sports is becoming more attractive, the people said. They asked not to be identified in order to speak freely.

“There’s no cost control, and you have irrational competitors like Todd Boehly who distort the market,” said Roger Mitchell, who runs Albachiara Group, a consultancy focusing on the value of sports investment. The English Premier League has a “great product, but it’s not a business,” he said.

Boehly said that there’s “nothing irrational” about Chelsea’s approach, which he described as “laying a long-term foundation, establishing a great leadership team and responding to the environment.” The brand power of big clubs, such as Chelsea, also can’t be replicated, giving them potential to grow globally, he said.

Historic clubs such as Arsenal and Liverpool have also fallen