Football club shares have long been a popular way for fans to feel a closer connection to their teams. But they can also offer a potentially lucrative investment. So, which football club shares should you be watching this season?
What’s happening?
- It’s the start of the 2023 Football season, and interest in football clubs and their sponsors is picking up.
- Many people are surprised to learn that shares of some of the top clubs are publicly listed on US and European stock exchanges
- The sponsors of top-performing teams also stand to benefit financially from kit sales and good PR.
FUN FACT:
Tottenham Hotspur became the first football club to be publicly listed on the London Stock Exchange in 1983.
Which football clubs can you buy shares in?
Manchester United PLC (NYSE: MANU)
One of the most well-known clubs globally, Manchester United's shares have been performing strongly on the New York Stock Exchange. The recent buzz around potential takeover bids has boosted their stocks significantly. The club's robust commercial revenue and raised revenue guidance for the fiscal year 2023 make it an attractive option for potential investors.
Juventus Football Club SpA (MI: JUVE)
Despite facing challenges, such as a major board shakeup and accounting penalties that impacted their share prices, Juventus remains one of the biggest football brands in the world. The club's financial health and performance in Serie A and European competitions can significantly influence its stock value.
Borussia Dortmund GmbH & Co KGaA (ETR: BVB)
German football giant, Borussia Dortmund's stocks have received 'buy' recommendations from several analysts. The club's performance in Bundesliga and participation in the UEFA Champions League can play a significant role in driving its share price.
Arsenal Holdings
Although not directly listed on a public exchange, Arsenal's parent company trades on the specialist market NEX Exchange. With a reported share value as high as £30,000, it remains a unique investment opportunity.
AS Roma SpA (MI: ASR)
AS Roma's stocks have been performing well, with a 73% rise since March 2022. Apart from its on-field performance, the club's ventures into sports venues and other football-related businesses make it an enticing stock option.
Manchester United has outperformed the other football stocks over the past 12 months, which have been relatively subdued compared to the overall stock market that has posted double digit returns so far in 2023.
Source: FlowBank / TradingView
State of the football industry
The football industry continues to grow globally, with clubs expanding their brand reach through international tours, merchandise sales, and digital platforms. While the Covid-19 pandemic had a short-term impact, with reduced ticket sales and broadcasting revenue, the long-term prospects remain positive as fans return to stadiums and global competitions resume.
Here are the top 10 football clubs by market value as of 2021.
Source: Forbes
What affects the price of football stocks?
Several factors can influence football stock prices:
- Team's Financial Health: Clubs with sound financial practices and robust revenue streams tend to have healthier stock values.
- Game Results: On-field performance, especially in major tournaments, can significantly impact stock prices.
- Player Transfers: The signing or sale of star players can sway investor sentiment.
- Sponsorships: Lucrative sponsorship deals can boost a club's financial outlook, positively affecting its share price.
- Scandals: Any negative publicity or controversies can harm the club's stock value.
Alternative: Football sponsor stocks
Apart from club stocks, companies sponsoring football events or clubs also present promising investment avenues.
Nike (NKE): With endorsement deals with top footballers and lucrative kit deals with major clubs like Barcelona and Manchester United, Nike remains a dominant player in the football world.
Adidas (ADSG): Sponsorship deals with elite clubs like Real Madrid and its historical connection with football make Adidas a major player in football stocks.
Puma (PUMG): Puma's historical significance in football, combined with its recent partnership deals with clubs like Manchester City, makes it a viable option for investors looking to diversify their portfolio.
In summary
As the new football season begins, the stock market presents numerous opportunities for investors interested in the football industry. Whether it's buying shares in a club or investing in sponsor stocks, with the right research and strategy, one can score big in the world of football stocks.
