Football and music are happy bedfellows, yet the idea of US rapper A$AP Rocky and his even more famous girlfriend Rihanna rocking up in the directors’ box of lowly Tranmere Rovers still feels like a stretch.
Nonetheless, it appears to be a very real possibility, with A$AP Rocky reported to be part of a consortium led by former Trump lawyer and serial football investor Joe Tacopina in talks to buy a majority stake in the League Two club.
The deal is just the latest example of football’s “celebrification”, according to Professor Simon Chadwick, an expert in global sports business, with A$AP Rocky providing “the public face of an investment consortium that drives engagement and interest in takeover bids”.
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It follows Ryan Reynolds and Rob McElhenney’s buyout of Wrexham, fellow actors Will Ferrell and Michael B Jordan investing in Leeds United and Bournemouth respectively, and NFL star Tom Brady’s involvement in Birmingham City.
“Celebrities from various fields are recruited for takeovers in sports due to their influence and ability to attract attention,” says M&A lawyer Javier Mendez at Baker McKenzie in Madrid.
“This benefits both parties: the celebrity gains exposure and potential financial opportunities, while the sport or brand gains increased visibility and engagement with a wider audience.”
Having a famous name as part of an investment group can help both in the fundraising stage and when trying to land a winning bid, due to the extra appeal that Hollywood stars, for example, have for casual fans and prospective sponsors.
“It offers a point of differentiation from other funds looking to raise. In a difficult raising market like it currently is, every edge helps,” says Malph Minns, managing director of Strive Sponsorship.
“Secondly it can help when looking to make investments. Where there is competition to invest, business owners are looking for what else an investor can bring beyond money.
Tranmere Rovers play in League Two and were a non-league club five years ago
“Traditionally this has been largely based around skill sets and knowledge to help drive the business forward, together with a network to help facilitate growth and even facilitating collaborations with other relevant businesses in their portfolio.
“However celebrity involvement brings an additional benefit: they have their own large, engaged audience that can help grow the value of the investment by extending reach and super-charging existing revenue streams and indeed helping enhance the brand perception.”
Tranmere ‘won’t dramatically increase A$AP Rockey’s wealth’
Celebrities’ financial commitment can vary, with Reynolds and McElhenney buying Wrexham outright but others, like Brady, taking only small minority stakes. A$AP Rocky’s involvement in Tranmere is expected to follow the latter model.
Both types of investors can leverage their own brands to grow clubs’ appeal, with the Welcome to Wrexham documentary winning legions of US fans and global sponsors such as American Airlines and TikTok.
It is not a one-way street, either, with these investments offering celebrities a cheap and easy way to potentially generate a return but, perhaps more importantly, reach new audiences.
“In some ways, this all makes sense, as the convergence of sport, entertainment, music, and fashion continues apace. For A$AP, his involvement is likely to be relatively low cost and low risk, though with the promise of financial and repetitional returns,” says Prof Chadwick.
“As Reynolds and Wrexham have shown, one can build business even from the lower reaches of English football. Furthermore, both the actor and the club have now attained a particular status and reputation through their work together.
“Tranmere won’t dramatically increase A$AP Rocky’s wealth, but it could drive his exposure and reinforce his brand.”
Deals help celebrities plan for future but must be credible
Such deals can also open doors and burnish the business reputations of celebrities with one eye on life after the limelight fades, adds Mendez.
“These takeovers can help celebrities diversify their portfolios and plan for a future beyond their active careers by building new relationships, exploring different industries, and establishing themselves as entrepreneurs or investors,” he adds.
While A$AP Rocky is regularly seen sporting football shirts, it is not known how closely he follows the sport – let alone the fortunes of Tranmere Rovers, who were a non-league club until five years ago.
Not every celebrity acquisition is a slam-dunk, and there ought to be some sort of link between the star investor and the brand if it is to bear fruit.
Guild Esports traded on its backing by David Beckham and raised £20m ahead of its float in 2020 but failed to connect sufficiently with younger audiences and was last week sold for just £100,000 with £2m of debt.
“Celebrity owner involvement works best when there is a credible reason to be associated,” says Minns. “If things are force-fitted there is a greater chance of failure.”