In November 2020, actors Rob McElhenney and Ryan Reynolds were announced as the new owners of north Wales-based soccer club Wrexham AFC, which was competing in the National League at the time, the fifth-highest league in the English soccer system.
Since the pair have come on board, Wrexham have experienced substantial domestic success which included back-to-back promotions to earn a place in the third-tier League One.
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At Birmingham City, the club was finally able to secure the services of a new ownership group after two other attempts fell through. In July 2023, Shelby Companies Ltd, a subsidiary of US-based Knighthead Capital Management fronted by Tom Wagner, agreed a controlling stake in the club and full ownership of Birmingham City’s stadium, St. Andrew’s @ Knighthead Park.
A few months after the initial takeover, NFL legend and seven-time Super Bowl winner Tom Brady joined the club board as a minority owner. This addition has been a game changer for the club in generating interest from sports fans in the United States.
Birmingham ended the 2023-24 season disastrously, getting relegated from the EFL Championship to League One and now fighting for promotion back to the second tier of English soccer.
Recently, both teams faced each other in what was dubbed the ‘Hollywood derby’, with Birmingham coming out on top as 3-1 winners. The match was eagerly anticipated with both teams being undefeated in League 1 and was viewed as a showdown between the famous investors involved in both teams.
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By GlobalDataThis was certainly one of the most publicized regular season games in League One’s history. In the US, a market both teams are targeting to help build their audience, fans were able to tune in to the game on CBS. It is estimated that roughly 5,000 US households have subscribed to watch Wrexham games live.
With each club being associated with big-name North American stars, who have powerful commercial connections in the region, several globally recognized brands have signed commercial deals with Wrexham and Birmingham, including United Airlines and Delta Air Lines.
For these companies – already partnered with major sport properties – to be investing commercially with League One clubs is something previously unheard of in the English third tier. This emphasizes the new commercial pull that both clubs have thanks to their famous investors.
The first airline deal was revealed by Wrexham in June 2023 when they announced United Airlines as their new primary shirt sponsor. GlobalData estimates the agreement, which expires at the end of the 2024-25 season, is worth $400,000. In addition, United Airlines benefits from having its logo featured across the social media profiles of both Reynolds and McElhenney, who have social media followings in the tens of millions.
In contrast, Birmingham have agreed a one-year partnership with Delta which allows it to serve as the club’s official airline partner and receive sleeve sponsorship rights with the brand’s logo appearing on the men’s and women’s first team’s shirts.
The partnership is worth an estimated $250,000. There is no doubt that the recruitment of Brady has had a huge effect on the commercial attractiveness of the club, as brands can associate themselves with the team but also have access to the former NFL star quarterback, who has 15.1 million followers on Instagram alone.
While Reynolds and McElhenney own 100% of Wrexham, Brady reportedly owns just 3.3% of Birmingham, with no voting rights.
The North American investors have made a very positive impact on both teams with fans expressing high praise for the benefits of the clubs and across their local communities.
The aspirations of Birmingham CEO Garry Cook to further expand the club’s presence in the US, by staging a future league fixture against Wrexham across the pond is controversial, to say the least.
In the UK, it is considered by most stakeholders involved in soccer that domestic games should not be played internationally. Realistically, a pre-season friendly match could be scheduled in the US allowing both clubs to work together to market the game as the ‘Hollywood derby’, which could draw big attention from the American sports media and further eyes on the teams from US fans and companies.
Moving forward, the EFL will be hoping that both clubs can continue to grow their fanbases in North America to help drive up the value of its next media rights deal in the US.
The rights are currently held by US national network CBS Sports until the end of the 2027-28 season. With Wrexham and Birmingham both committed to achieving domestic league success over the next few seasons, interest in the US for both teams with American connections could be key to the EFL pushing through an increase in its next media deal in the market.
American celebrities are becoming increasingly intrigued into associating themselves with English soccer clubs. Currently, LeBron James, Will Ferrell, Jordan Spieth, Russell Westbrook, Larry Nance, Jr and JJ Watt have all invested in teams.
Over the next few years, more American stars may follow their lead and invest in other EFL clubs that are seeking outside investment. Retired American athletes seem to see substantial gains in associating themselves with passionate fanbases and increasing their presence in the UK to develop their brand outside of their home market.
Clubs will stay interested in bringing in big American names, as it offers them a huge opportunity to grow their brand in the biggest sport market in the world. Boosting revenues by increasing merchandise sales can be crucial for many clubs in achieving financial stability.
