Introduction
When an individual seeks to invest in stocks of companies listed on a stock exchange, they aim for superior returns compared to fixed income or other asset classes. The decision on which stocks to buy depends on the performance of each issuer (sales, profits, returns), the sector they belong to, the market in which they trade, trends, and prevailing expectations about that particular value.
Soccer Teams’ Financial Aspects
For soccer teams, their revenue sources stand out: television broadcasting rights, streaming, sponsorships and advertising, matchday tickets and season passes, and player transfers. These are economic and financial aspects inherent to each team.
The Sports Component: Choosing a Team to Invest In
Here, the purely sports aspect comes into play. Factors such as which team is most successful, plays best, or has the best players become crucial. A potential issue arises when franchises or teams fail to meet these criteria and don’t trade on any stock exchange.
This type of offering is primarily found in Europe, with Tottenham being the first to do so in 1983. Over subsequent decades, several European clubs decided to list on their respective stock markets: AS Roma, Juventus, Lazio (Italy); Borussia Dortmund (Germany); Sporting and Benfica (Portugal); Ajax (Netherlands); Tottenham and Manchester United (England), with the latter listing on the London Stock Exchange from 1991 to 2005 and returning in 2012, but this time on the New York Stock Exchange.
Impact of Sports Results on Stock Prices
AS Roma (2018): After losing 4-1 to Barcelona FC in the Champions League quarterfinals, AS Roma won 3-0 at home, eliminating Barcelona and advancing to the semifinals. The next day, their stock price surged 23.7%. However, in the subsequent phase, after losing 5-2 to Liverpool in their first matchup, the stock price fell nearly 10%. Despite winning the second leg, they were eliminated from the tournament. The final stock price movement reflected a 17% return compared to the pre-quarterfinal price.
Juventus (2019): Following their elimination of Atlético Madrid in Champions League round-of-16, Juventus’ stock price soared 16%. A month later, after being eliminated by Ajax of the Netherlands, their stock price plummeted 17.6%, suffering its largest drop since 2013.
Club América (Mexico): After winning back-to-back Mexican league titles, Club América debuted on the Bolsa Mexicana de Valores (BMV) under the ticker Águilas CPO. The day after their victory, their stock price rose 16.5% during intraday trading but closed nearly unchanged from the previous session.
Key Questions and Answers
- Q: How do a soccer team’s sports results affect their stock prices? A: Soccer teams’ stock performances are influenced by their on-field results, with victories often leading to price increases and defeats causing drops. Emotional factors also play a role, as fans’ passion for their favorite teams can drive investment decisions.
- Q: Which soccer clubs have listed on stock exchanges? A: European teams like AS Roma, Juventus, Lazio (Italy), Borussia Dortmund (Germany), Sporting and Benfica (Portugal), Ajax (Netherlands), Tottenham, and Manchester United (England) have all listed on their respective stock exchanges.
- Q: Can combining sports passion with investments be a successful strategy? A: While it’s possible to combine sports enthusiasm with investments by purchasing stocks of soccer teams, it’s essential to analyze these opportunities with the guidance of a financial expert.
