US money is pouring into English football. But at Sheffield Wednesday, American investor David Storch’s first challenge was not signing players. It was fixing the Wi-Fi.
Storch bought the troubled League One club for less than £20 million. He arrived in June and quickly found several problems at the historic club.
“We’ve got to fix the hot water in the building, the Wi-fi and the elevators aren’t functioning properly,” Storch said when he arrived in June. “And we don’t have a lot of time.”
American money enters English football.
Storch’s experience shows the reality of US investment in English football. About 40 of the 92 clubs across England’s four divisions now have some US ownership.
The investment is not limited to the Premier League. Several historic clubs in the lower divisions are also attracting American money.
Jeff Bezos recently bought a stake in Liverpool. The Kroenke family owns Arsenal, while the San Francisco 49ers have invested in Leeds United.
Tom Wagner also owns Birmingham City. Former NFL star Tom Brady is an investor in the Championship club.
Wrexham is another major example. Hollywood stars Ryan Reynolds and Rob McElhenney bought the Welsh club for £2 million in 2021.
The club has since climbed the English football pyramid. It also secured backing from Apollo Global Management last year.
“American capital has found a thesis that works at every level of the pyramid,” said Edward Joudrey, a senior banker at Citigroup in London.
“Set against US franchise valuations, English clubs still look cheap for the audience they command, and unlike a franchise, you can buy in at the bottom and earn your way up.”
Sheffield Wednesday’s costly rebuild
Storch’s task is more basic than chasing Premier League glory. He must first rebuild Sheffield Wednesday.
The 73-year-old made his fortune in aviation. The club is his first major investment in football.
Sheffield Wednesday was founded in 1867. It is one of England’s oldest football clubs.
However, years of financial problems left the club in a difficult position. It was relegated to the third tier after entering administration and failing to pay wages on time.
Storch has already spent about £9 million on Hillsborough Stadium.
Almost £1 million went towards a new Wi-Fi system. Another £300,000 was spent on new elevators.
The club is also spending £900,000 to refurbish its restaurant.
Can the American investment deliver?
Storch must also increase the club’s commercial income. Sheffield Wednesday has only about 500 premium seats.
Top clubs such as Liverpool and Chelsea have at least 10,000.
The club is also working to improve its youth academy and playing squad. Its loyal supporters could provide a strong base for the rebuild.
More than 24,000 fans have bought season tickets for the new campaign. More than 30,000 supporters attended the final game of last season.
“The expectations of the fans are crazy,” said Ian Bennett, a former Sheffield Wednesday Supporters’ Trust leader. “The fans have bought into the new regime.”
Storch, however, is taking a cautious approach to the rebuild.
“I don’t want to put pressure on the organisation to go quicker than it can manage
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