Stock investments in the football industry: Equally thrilling as watching the matches unfold
In the world of European football, the new season has begun with a mix of financial challenges and exciting prospects.
FC Barcelona, despite carrying significant debts, made headlines this summer by spending over 150 million euros on transfers. This move, while ambitious, raises questions about the club's financial stability.
Meanwhile, in the stock market, Borussia Dortmund GmbH & Co. KGaA, the only publicly traded German football club, continues to be a popular choice among investors. However, the club, like Juventus Turin in Italy, carries a substantial debt burden.
As of 2022, the top European football clubs listed on stock exchanges primarily include Borussia Dortmund and several Italian clubs on the Milan Stock Exchange. Notable absences include Chelsea, Manchester United, and Paris Saint-Germain, which are privately owned and not publicly traded.
In the German Regionalliga, SpVgg Unterhaching could potentially return to the professional league, bringing new excitement to the club and its fans. The stock of SpVgg Unterhaching, while primarily for the club's supporters due to limited trading volume, could also potentially yield financial resources through talent sales.
The Bundesliga kicked off its 60th season on August 5th, with Borussia Dortmund and Borussia Mönchengladbach among the favourites. Dortmund, who suffered a loss of over 70 million euros in the fiscal year ending mid-2021 due to the pandemic, could potentially fight for the title this season with new signings. However, the outcome may depend on whether there will be new COVID-19 restrictions in the fall.
Ajax Amsterdam, on the other hand, has been a consistent performer, winning the Dutch championship five times in the past decade. Meanwhile, Manchester United finds itself in the Europa League this season, a testament to the club's less-than-stellar performance in recent years.
In the realm of stadium sponsorships, Spotify secured the rights to name Europe's largest stadium, the Camp Nou, and will pay up to 70 million euros per year until 2026. This deal underscores the potential revenue football clubs can generate from such partnerships, including the sale of long-term broadcasting rights, a share of the club's audiovisual production studio, and stadium naming rights.
Analysts see positives in Manchester United's stock, citing it as one of the most famous sports brands in the world. Despite the club's financial struggles, its global appeal and potential for growth make it an attractive investment for some.
In conclusion, while some European football clubs grapple with financial challenges, others continue to thrive, both on and off the pitch. The 2022-2023 season promises to be an exciting one, filled with competition, drama, and potentially significant financial gains for those clubs that can navigate the complexities of the modern football landscape.
FC Barcelona's decision to invest 150 million euros in transfers, despite their existing debts, stirs discussion about their financial stability in the stock-market. Meanwhile, Borussia Dortmund GmbH & Co. KGaA, a public football club in Germany, remains popular among investors, although its debt burden is substantial. Other top European football clubs listed on stock exchanges, like several Italian clubs, also carry significant financial burdens.
