The determinants of inward foreign direct investment into the English Premier League

Abstract

This paper analyses the inflow of Foreign Direct Investment (IFDI) into the English Premier League. IFDI into the English Premier League is a relatively new phenomenon, only commencing in 1997, but by 2013 over half the English Premier League clubs were under foreign ownership. This foreign ownership is almost equally divided between developed market investors and those from emerging markets. There is at present a dearth of work investigating the motivations or determinants behind this IFDI. Using questionnaires, face-to-face interviews and other documentary evidence, these motivations were explored. The results indicate that the determinants of IFDI into the English Premier League encompass factors which fit well with both mainstream FDI theory and that used to analyse emerging markets, nonetheless respondents also provided additional key factors such as that of conspicuous consumption, positional good theory and that of a trophy asset, suggesting an extension of the theoretical models underpinning IFDI in this sector.