Investing in sports clubs and teams can be an attractive opportunity for several reasons. One of the key factors that make sports clubs a good investment is their brand value. Successful sports clubs often have strong, well-established brands that are recognized and respected worldwide. This brand recognition can translate into significant revenue streams through sponsorships, merchandise sales, and broadcasting rights. As the popularity of a club grows, so does its brand value, which in turn can lead to increased profitability and higher returns for investors.
Another important aspect of sports clubs as an investment is the valuable assets they possess, such as land and facilities. These tangible assets can appreciate in value over time, providing a solid foundation for the club’s overall worth. Additionally, there are expansion opportunities through the multi-club ownership model, where investors can acquire stakes in multiple clubs and benefit from synergies in operations, marketing, and player development. This strategy can lead to cost savings and increased revenue generation, making sports clubs even more appealing as an investment. Overall, the combination of strong brand value, valuable assets, and expansion opportunities can make investing in sports clubs a potentially rewarding venture for investors.
It is also true that wise teachings tell us to invest in what we love and understand and never to invest in something we do not understand. On that note, sports enthusiasts may enjoy what we are about to share here.
13 Stocks that allow you to invest in public sports teams:
#1. Brera Holdings (BREA)
Brera Holdings is an investment company focused on acquiring and managing assets in the football sector. The company’s strategic approach targets undervalued clubs with significant growth potential, enabling them to benefit from Brera’s expertise in sports management, finance, and marketing. Post-IPO, Brera Holdings aims to democratize football investments, making them accessible to a broader range of investors, rather than exclusive to wealthy oligarchs. With its unique approach to football investments and a focus on value creation, Brera Holdings offers an intriguing opportunity for investors seeking exposure to the sports industry. As a multi club owner of the extremely valuable BRERA F.C. in Milan, as well as a new club in Mozambique and another club it will acquire in Macedonia, it is rapidly boosting the brand value of Brera Holdings.
#2. Manchester United PLC (MANU)
Manchester United, a globally renowned soccer club, is publicly traded on the New York Stock Exchange under the ticker symbol MANU. Manchester United has been listed since 2012 and is considered one of the most valuable sports franchises in the world. Although this is a solo club, it has substantial brand value and is incredibly valuable in Europe. The American Glazer family has seen peak valuations around the time they expressed an interest in the sale of their shares in the club.
#3. Liberty Media Corporation (BATRA, BATRK)
Liberty Media Corporation, a conglomerate that owns interests in various media, communications, and entertainment businesses, is the majority owner of the Atlanta Braves. The company’s shares are traded on the NASDAQ stock exchange under two separate tickers: BATRA and BATRK. These shares represent the Braves Group, which includes the Atlanta Braves Major League Baseball team and related assets.
#4. Madison Square Garden Sports Corp. (MSGS)
Madison Square Garden Sports Corp., a spin-off of the Madison Square Garden Company, owns the New York Knicks (NBA) and the New York Rangers (NHL). The company’s shares are traded on the NYSE under the ticker symbol MSGS.
#5. Formula One Group (FWONA, FWONK)
Formula One Group, owned by Liberty Media Corporation, holds commercial rights to the Formula One World Championship, one of the world’s most prestigious auto racing series. The company’s shares are traded on the NASDAQ stock exchange under the tickers FWONA and FWONK. Their latest earnings report is out and future investors can decide based on the facts.
#6. Churchill Downs Incorporated (CHDN)
Churchill Downs Incorporated, best known for its namesake horse racing track and the Kentucky Derby, is a publicly traded company on the NASDAQ stock exchange under the ticker symbol CHDN. In addition to horse racing, Churchill Downs owns several casinos and online gaming platforms.
#7. International Speedway Corporation (ISCA)
International Speedway Corporation, now a part of NASCAR Holdings, operates multiple motorsports entertainment facilities across the United States. Before its acquisition by NASCAR Holdings, the company’s shares were traded on the NASDAQ stock exchange under the ticker symbol ISCA.
#8. Borussia Dortmund (BVB.DE)
Borussia Dortmund, a German professional football club, is listed on the Frankfurt Stock Exchange under the ticker symbol BVB.DE. This club consistently performs well in the Bundesliga and has a large, dedicated fan base. Investing in Borussia Dortmund could be a good option for those who believe in the club’s ability to maintain its competitive edge and capitalize on its strong brand.
#9. Juventus Football Club (JUVE.MI)
Juventus, an Italian professional football club, is traded on the Borsa Italiana under the ticker symbol JUVE.MI. Juventus has a history of success in Italian and European competitions and boasts a roster of top players. Investment in Juventus could be attractive for those who believe that the club’s on-field success will translate to financial growth and increased brand value.
#10. A.S. Roma (ASR.MI)
A.S. Roma, another Italian professional football club, is listed on the Borsa Italiana under the ticker symbol ASR.MI. A.S. Roma has a loyal fan base and is known for its competitive presence in both domestic and European competitions. Investing in A.S. Roma might be a good choice for investors who see potential in the club’s ability to grow its brand and revenue streams through on-field success and strategic partnerships.
#11. Celtic PLC (CCP.L)
Celtic, a Scottish professional football club, is traded on the London Stock Exchange under the ticker symbol CCP.L. Celtic has a long history of success in Scottish football and a dedicated global fan base. Investment in Celtic could be appealing for those who believe in the club’s continued dominance in Scottish football and its ability to expand its international reach.
#12. SL Benfica (SLBEN.LS)
SL Benfica, a Portuguese professional football club, is listed on the Euronext Lisbon Stock Exchange under the ticker symbol SLBEN.LS. Benfica has a strong track record in Portuguese football and European competitions. Investing in SL Benfica might be a good option for those who see potential in the club’s ability to maintain its on-field success and grow its brand and revenue through commercial partnerships and international expansion.
#13. Ajax (AJAX.AS)
Ajax, a Dutch professional football club, is traded on the Euronext Amsterdam Stock Exchange under the ticker symbol AJAX.AS. Ajax is known for its strong youth development program and has consistently been successful in both domestic and European competitions. Investing in Ajax could be appealing for those who believe in the club’s ability to maintain its competitive edge, develop top talent, and capitalize on its strong brand.
What are the most important factors when determining the valuation of a football club?
Now that it is clear a large number of sports clubs that are on the stockmarket belong to the football family, it is worth understanding how valuations might be deriverd. When determining the valuation of a football club, several key factors contribute to the overall assessment. Some of the most important factors include:
Revenue streams: The club’s ability to generate revenue through various channels, such as ticket sales, merchandising, broadcasting rights, and sponsorships, plays a significant role in its valuation.
On-field performance: Success in domestic and international competitions can significantly impact a club’s valuation as it influences revenue streams, brand recognition, and marketability.
Brand value: A club’s brand value is determined by its global recognition, fan base, and historical success. A strong brand can attract better players, sponsorships, and create lucrative merchandising opportunities.
Stadium ownership and capacity: Owning a stadium can be a significant asset, as it generates revenue through ticket sales, naming rights, and other events. The stadium’s capacity and location also influence the valuation, as larger stadiums in prime locations can generate higher revenue.
Player assets: The market value of a club’s players can significantly contribute to the overall valuation. Top players with high transfer values can increase a club’s worth, while a strong youth development program can ensure a steady pipeline of talent for the future.
Debt levels: A club’s financial health, including its debt levels and overall financial management, plays a crucial role in determining its valuation. High debt levels can negatively impact a club’s worth, while strong financial management can lead to increased investor confidence.
Commercial partnerships: Lucrative sponsorship deals and strategic commercial partnerships can boost a club’s valuation by providing additional revenue streams and enhancing the club’s brand.
Market potential: The club’s ability to expand its fan base and enter new markets, both locally and internationally, can impact its valuation. This includes the potential to grow through digital media and international tours.
Management and ownership: A stable and competent management team, as well as committed and financially secure ownership, can positively influence a club’s valuation.
League and regulatory environment: The financial stability and attractiveness of the league in which the club competes can impact its valuation. Regulatory environments, such as financial fair play rules and salary caps, can also affect a club’s financial outlook.
There are few business types with such an evolved matrix of revenue opportunities, thus when a good management team acquires the right club, the tools available for revenue optimization and subsequent increases in valuation are substantial. Note that these factors contribute to a comprehensive understanding of a football club’s worth. However, it’s essential to note that valuations are subject to fluctuations based on market conditions and the club’s performance, making them a dynamic and complex process.
Final Take:
To conclude, sports stocks offer a unique and potentially rewarding investment opportunity, with their valuable assets, strong brand values, and expansion potential. Yet it is important for investors to be aware of the potential risks associated with these investments.
While sports clubs can be quite defensive, with sports grounds acting as a good store of value, brand values can be vulnerable to economic downturns. During recessionary times, consumer spending on sports events, merchandise, and sponsorships may decline, negatively impacting the revenue streams and brand values of sports clubs. Therefore, investors should carefully consider the risks and rewards associated with sports stocks and diversify their portfolios accordingly to mitigate potential downturns and capitalize on the long-term growth opportunities these unique investments can provide.
