World leaders are assessing the impact that Donald Trump’s new tariffs will have on their countries, and the powers that be at Premier League and EFL clubs might be pondering how they will be affected too.
President Trump has hit countries with increased tariffs on goods entering the United States, with the United Kingdom placed in the 10 percent bracket.
This makes business with the United States less profitable and is designed to promote America’s own manufacturers.
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But what does it mean for football clubs? Well, half of the Premier League’s 20 teams are backed by American money and a large number of EFL teams are too.
Birmingham City are under the control of American investment firm Knighthead Capital Management who have spent heavily to transform the club’s infrastructure and playing squad in the past two years.
Football finance expert Professor Rob Wilson believes the new tariffs ‘could lead to increased operational costs for American stakeholders in English football’ – but the carrot of the Premier League and a slice of the enormous broadcast deal still makes it worth their while long-term.
Wilson told OLBG: “The impact on investment in the Premier League and EFL might be more nuanced. For instance, investors from the US often view football clubs as both lucrative commercial ventures and global branding opportunities.
“The long-term nature of these investments means that, while tariffs may affect short-term profits due to increased costs (e.g. merchandise or stadium-related imports), they may not immediately deter investment in the sports industry.
“Furthermore, given the commercial and media rights deals, the overall economic attractiveness of top-flight English football — with its global viewership and expansive broadcasting rights — remains substantial enough to attract US-based capital despite such tariffs.
“While tariffs could increase the costs of operating across borders, they are unlikely to halt American investment in English football outright. Instead, we may see a strategic recalibration where US investors seek ways to mitigate these additional costs, such as renegotiating broadcasting or sponsorship deals to maintain profitability.
"We’re already seeing a slow down in investment in football with other sports benefitting - netball an obvious example after the recent acquisition of Birmingham Panthers by the BCFC owners.”
Knighthead now have a stake in three Birmingham-based teams with Blues, the Panthers and cricket team Birmingham Phoenix. They have also set the wheels in motion to build a state-of-the-art Sports Quarter in the heart of the city, so their investment in Birmingham is a long-term bet.
