Are European Football Clubs Worthwhile Investments?
There is no secret that European football clubs have significant financial might. Even with the COVID-19 pandemic hitting markets hard, the leading top-flight European football clubs spent billions on player transfers.
As a result, investing in shares of top football clubs is one of the hottest trends in the stock market and could be quite profitable with the right strategy.
Still, you could be asking yourself, “Is buying shares in football clubs something I should consider?” Here’s all you need to know:
Are European Football Clubs Risky Investments?
A year ago, buying football shares would have been suicidal since COVID restrictions meant that clubs lost a sizeable part of their revenues. The 6th edition of KPMG’s European Champions report indicates that the champions of Europe’s top leagues lost billions in revenue due to the pandemic in the 2020/2021 season.
However, things are slowly returning to normal and taking a turn for the better. With falling rates of COVID cases due to mass vaccination, clubs reopened their gates to the public. Fan attendance at stadiums brings gate receipts and significantly increases TV rights earnings.
With football recovery, this could be the time to invest in football shares, as significant investments in football by major investment funds indicate.
How To Buy Stock in A European Football Club
Only a few European football teams are publicly listed. Here’s an abbreviated guide to finding listed clubs and investing in football stocks:
- Register with a stockbroker
- Log in to the brokers portal and explore the football stock showing signs of growth.
- If you are interested in a specific club, type its name in the search bar. If its stock is listed, you will find it
- Choose the number of shares you want to buy after pinpointing your desired stock
- Use the “purchase now” button to complete the transaction
If you have experience in stock trading, you can analyze the best football stock to buy, but if you are still new to the business, then using a stock-picking service will help you trade like a pro.
Which European Club Sells Shares to The Public?
As mentioned above, only a few clubs are publicly listed and include:
Currently owned by the Glazer family, Manchester United was initially listed on the London Stock Exchange. The Glazers delisted it from the exchange but later made it public again on the New York Stock Exchange.
One of three public Italian football clubs, the Bianconeri first listed in 2001 on the Milan Stock Exchange. Short-term investors reaped large rewards when the club signed Cristiano Ronaldo as the share price grew by 150%.
The Hoops have excelled both on the pitch and financially in recent years, with the club’s share price skyrocketing between 2017 and 2019. While the pandemic hit the club’s finances, it is back on an upward trend.
Since Roma’s IPO, the club’s stock price declined by up to 85%, but Jose Mourino’s appointment as head coach has seen a rise in share price.
Dortmund is the only publicly listed football club in Germany. After the COVID pandemic that hit all of European football, BVB’s shares are back on an upward trajectory, and the club has been paying its shareholders dividends since 2019.
The Last Word
Investing in a football club could be an excellent way to make money if you accurately assess the market. Besides a team’s fan following and the club’s on-pitch performance, the financial status of the owners is a critical factor to consider. Without stable ownership, a football club can be a tricky investment, regardless of how successful or popular the club is.
By: Adam Thompson
Featured Image: @GabFoligno / Jonathan Moscrop – Getty Images