Business of Sport Ep.32: Brett Johnson, Co-Owner @ Ipswich, Rhode Island FC, & Phoenix Rising ‘The US needs to be more than a retirement league’

Business of Sport

This week we’re delighted to welcome Brett Johnson to the show. Brett is the co-owner of Ipswich in the Premier League and Phoenix Rising and Rhode Island in the US. The rise of Ipswich since his group takeover is nothing short of ownership dreamland, seeing the club achieve back to back promotions from League One to the Premier League.

But this is only the most recent success for Brett in football. The joy of speaking to owners on the show is getting access to the people behind the numbers and strategies. Who really are our owners? He has been a key driver of development in the US, building infrastructure, brand and talent in the league under the MLS, the USL. Phoenix Rising has seen huge success over the past decade, from rebrand to new stadium to Didier Drogba, and his new team Rhode Island is set to do great things both on the pitch and in the community.

Sports ownership is one of the most opaque parts of the sports industry. This conversation draws back the curtain. Owners like Brett are what the game needs.

On today’s show we discuss:

Founding franchises:

• Identifying opportunity: there are many cities in the US with massive football communities that don’t have an MLS team. What can you create outside of the top system?
• How the birth of Phoenix Rising led to the build of a new stadium, development of young talent, and the recruiting of the legendary Didier Drogba as player and part-owner.
• Location, Location, Location - these franchises are more than sports teams. They play key roles in the community, from employment to infrastructure/real estate to social value.
• Why Rhode Island and what is the opportunity with this new USL franchise?
• There is value in the MLS and no one is complaining, but the league needs to become more than a retirement league.

US sports leagues:

• Huge value, but limited jeopardy; why it is so hard to facilitate top to bottom relevance in a league season and retain maximum asset value.
• What are the buy-in prices for football in the US? It is rumoured that MLS team expansion franchises are now worth $600m. A USL franchise is worth $20m. Which one represents better business?
• A deep dive on the USL and why there is so much opportunity from a business perspective and value add from a talent perspective.
• How do these businesses run? What are the key revenue streams and how do you ensure you build a business that relies on a strong foundation not fanciful equity valuations.

Ipswich & English football

• If you want to be big in football, you need to be in England. This was always Brett’s ambition when becoming a team owner. The next question was which club?
• From being approached by Peter Kenyon to buy Newcastle to deciding Ipswich was the club to go after; what were the key factors in buying the club?
• Open leagues create the most incredible highs and lowest lows, from both the business side and for the fans. Relegation may decrease value, but rising through the leagues can add hundreds of millions to the value of a club.
• The value of English football is so because of the commercial and media revenues it can generate. Can the MLS create that same value without having promotion and relegation, and what is the impact of not doing that?