Stocks related to football: offering adrenaline rushes comparable to the sport itself.
Let's Getready to Rumble: Football Stocks are Back in Town!
It's that time again! The 60th season of the Bundesliga has kicked off, and football fever is sweeping through Europe. But it's not just about the thrill of the game anymore; there's cold, hard cash to be made too. So, let's dive into the world of football stocks and see how you can get a piece of the action!
In Germany, you have limited options, with only Borussia Dortmund and SpVgg Unterhaching listed on the stock exchange. Dortmund, the reigning vice-champion, is aiming to dive head-first into the Bundesliga battle against Bayern Munich this season after a stunning transfer offensive. On the other hand, Unterhaching is battling it out in the Regionalliga Bayern, hoping to climb their way up to the mighty Bundesliga.
But if you're looking for more options, Europe's got you covered! Clubs like Manchester United from the English Premier League, Italian champions Juventus Turin, Sporting Lisbon, AS Roma, Celtic Glasgow, and Ajax Amsterdam can all be found on various stock exchanges.
The Rollercoaster of Football Finances
The COVID-19 pandemic took a heavy toll on football clubs, with millions in ticket sales lost due to ghost games. For example, Borussia Dortmund can earn up to four million euros from ticket sales and catering at a sold-out home game. These revenues were often missing last season when clubs had to hold several games without spectators. Uncertainty still lingers as another corona wave in the fall could again lead to empty stadiums.
Fortunately, some clubs have managed to secure their finances. Barcelona, for instance, spent over 150 million euros on transfers this summer, thanks to the sale of long-term broadcasting rights and a part of the club's studio for audiovisual productions. Another example is Manchester United and Juventus Turin, which carry massive debt mountains, but are relatively stable due to over 60% of their income coming from advertising and matchday revenues, which are largely immune to a team's annual performance.
Success not only Monetary
When it comes to football, success isn't just about the money. Clubs like Apple and Amazon measure their annual success with metrics like revenue and profit. For football clubs, sporting performance, such as qualifying for a European competition, plays a significant role because it directly ties to financial resources. To secure a coveted spot, substantial expenses may be involved. A look at the clubs reveals a mixed picture: Dortmund has established itself as a Bayern Munich hunter, but it exited the Champions League prematurely last time. Juventus Turin has won the Italian championship eight times in the past decade, while Ajax Amsterdam has won it five times in the Netherlands. In 2019, the club surprisingly stormed to the Champions League semi-finals, causing its stock to surge. However, after conceding a late goal in the return leg, the team was eliminated from the most prestigious club competition, leading to a significant drop in the stock the following day.
Investor Info
Borussia Dortmund
Dortmund has returned with a bang, thanks to high-profile new signings, and could challenge for the Bundesliga title this season despite the departure of star player Erling Haaland. The financial situation is vulnerable due to the COVID-19 pandemic, but the stock seems worth a gamble at current levels.
SpVgg Unterhaching
The football club from a Munich suburb is playing in the Regionalliga, and after a good start to the season, there's hope for a return to the professional leagues, which could bring new excitement. Sales of talents could bring in new financial resources, either immediately or later through participations. The stock is more for fans of the club due to its low trading volume.
The bottom line? Football stocks can be an exhilarating investment, but they come with their own set of challenges. To make smart investments, one must keep a close eye on a club's financial performance, sporting achievements, and market demand, as well as government regulations and ownership structures. And remember, there's more to a football club's success than just cold, hard cash!
- Despite being the only German Bundesliga teams listed on the stock exchange, Borussia Dortmund and SpVgg Unterhaching offer potential for investors, especially with Dortmund aiming to compete against Bayern Munich this season.
- Given the impact of the COVID-19 pandemic on ticket sales, it's crucial for football clubs like Borussia Dortmund and SpVgg Unterhaching to explore alternative methods of finance, such as transfer revenues and broadcasting rights, to secure their financial future.
- While success for football clubs is often recognized by stats like revenues and profits, sporting performance plays a vital role as it directly impacts financial resources, especially in securing coveted spots in international competitions.
- A broad spectrum of European clubs, including Manchester United, Juventus Turin, Sporting Lisbon, AS Roma, Celtic Glasgow, and Ajax Amsterdam, are also listed on various stock exchanges, providing diverse investing opportunities in the football stock market.
