Volatile Football Stocks Offer a Tough Match for Shareholders
Whether you’re into football or not, it’s hard not to be affected by the volatile nature of football stocks. That’s why it’s important to be aware of the different stocks that are available for you to invest in.
Manchester United
Despite the Manchester United Football Club’s (MUFC) financial clout, the club’s stock has been lagging in the wake of a number of financial setbacks. The club’s share price has fluctuated between $14 and $21 since the first quarter of this year.
The club’s recent performance has been abysmal, and its financial health has taken a back seat to rivals. This prompted the club to file for an IPO earlier this month. In the end, the club decided to list in the United States, which exacerbated the volatility.
The club’s recent bout of volatility has resulted in a $476 million market capitalization loss. It is hard to make a sensible assessment of a club’s financial performance without examining every game it plays.
There are many things to consider in investing in a football club. A club’s financial performance should be reflected positively in its share price. In addition, the financial properties of a club’s marquee products should be reflected positively in its share price.
AFC Ajax
Listed European football clubs are an interesting investment option. They are undervalued by the market, and investors are able to make some bargain hunts. However, the high volatility of the market makes it risky to invest large amounts of money.
Fortunately, there are a few key things to keep in mind when investing in the soccer sector. The first thing is to understand that there are several secular trends that are boosting the growth of the sector. In particular, the market for media rights to broadcast matches is a key area. These rights are crucial to commanding higher advertising revenues.
Another important factor is prize money. The value of players will be based on the amount of prize money they are due. Depending on the popularity of the team and the number of viewers, money will vary.
A club’s prize money will also be affected by its position in the Champions League. Finishing in the top two of the tournament is considered a great advantage. Runners up typically receive eleven million Euros in guaranteed cash.
Carlos Slim’s new Mexican football teams
Known as El Ingeniero, Carlos Slim is one of the wealthiest men in the world. He is estimated to have a personal fortune of $59 billion.
In his quest for a share of the Mexican sports broadcast market, Slim has invested in Liga MX teams, including Club Leon and Pachuca. He acquired a 30 percent stake in Leon last week. His new teams will compete with the country’s Televisa and Univision for a projected audience of 35 million Mexican Americans.
Currently, Carlos Slim’s America Movil is one of the largest wireless companies in Latin America. The company has over 200 million customers and provides wireless phone and broadband services. Most of the company’s subscribers are landline users, but the company also has a strong mobile business.
Slim has also diversified his holdings into real estate and retail stores. His portfolio includes Sanborn’s and Denny’s coffee shops, which he acquired when the two chains opened stores in Mexico. He has also bought Mexican affiliates of General Tire and Reynolds Aluminum.
Mexico’s Liga MX
Despite the Liga MX’s recent suspension of the pro/rel system, Mexican soccer has moved forward with plans to expand its ranks from the current 12 teams. A new fan identification system is scheduled to be implemented, and the league will help clubs develop programs to better track their supporters. It’s not clear how Liga MX will sell its TV rights, but it is likely to do so in a package, and not as individual matches.
Liga MX owners met on March 8 in an extraordinary session, and discussed digital fan registration and facial recognition technologies. They also discussed ways to bolster security and tackle fan violence.
Liga MX has a history of franchise-swapping. In 2009, the club Necaxa gained automatic promotion, while Chiapas and Irapuato ended their promotion chances and moved to Queretaro. The club was renamed Toros Neza in 2012.
In recent weeks, Liga MX has been rumored to be interested in selling its TV rights to a U.S. firm, Apollo Global Managment. However, the firm would need to gain approval from Mexican soccer club owners. This is a major concern for the league, since they need to protect their second division from relegation.