Score a goal by investing in UK soccer teams

Millions of people love football. However, in April, sports headlines in Europe did not highlight the league standings, match results, player transfers, memorable goals, or the upcoming Euro 2020 tournament (which has been postponed for a year due to the pandemic).

Instead, fans woke up one morning to a proposal for the European Super League, which will be funded in part by the JP Morgan Chasing (NYSE 🙂 (SA :), a North American banking giant. The bank will inject $ 6 billion in cash. On April 19, it was announced that six English clubs would join six other Europeans to form the new league.

JP Morgan had hoped that the designated teams, which are among the biggest in the world, would join the Premier League. They play in five major European championships: England, Spain, Italy, Germany and France. However, the German and French teams immediately refused. Fans and politicians have made it clear that they do not want (or will not legally allow) English teams to participate in this new league.

In a matter of days, the project was dead – at least for now – in what the headlines had described as a “target against.” Newspaper The guardian I reported that a JPMorgan spokesperson said banks would learn from their mistake in miscalculating the reaction of various interest groups.

Given the hype that European football has gained in recent weeks, there is no better time to discuss how fans can invest in English and Scottish clubs.

Football has suffered from the pandemic

For the 2020/21 season, the Premier League (EPL) revenue is expected to be around € 6.2 billion. In other words, football is big business.

Operations include departures logistics, box office and stadiums, sale of uniforms and clothing, in addition to multimedia events. Clubs generally generate revenue from three main sectors: sponsorship contracts, media (broadcast and live broadcast) and revenues from the matches themselves.

Stephen Morrow of the University of Stirling and Brian Hoyson of the University of Dundee, UK, point out:

Professional football in Europe has changed dramatically in the past two decades or so, largely due to an increase in media rights agreements. Many professional teams are now complex companies, primarily concerned with finances. In addition, there are changes in the institutional structure of clubs, including a trend towards internationalization of their owners in some countries, such as England.

In the past year, we have all seen how different sectors of the economy have been affected by the pandemic. Professional sports, especially football, have not been without this.

Recent research by Daniel Parnell of the University of Liverpool indicates that COVID-19 has “opened up the Pandora’s Fund for Football Financial Fragility. Club owners, investors, the media and advertisers have been forced to adapt to the impact of canceling events and making operational changes.”

From this information, let’s take a look at two teams.

1. Celtic

The commercial growth of football in England and Scotland has brought many teams to the public. Aston Villa, Birmingham City, Glasgow Rangers and Tottenham Hotspur are among the clubs that have issued stock exchanges at some point in recent years. However, they are all privately owned at this time.

Currently , Celtic (LON :), based in Glasgow, is the only group listed on the London Stock Exchange (LON :). Readers may be interested to know that the club won the Scottish Confederation Cup (Season 19/20) for the fourth time in a row.

On April 29, the club’s shares closed at 125 pence. So far in 2021, stocks have already risen around 23%. It has a market value of 122.7 million pounds sterling (or $ 171.2 million).

In mid-February, Celtic released a tentative for the six months ending December 31. Its revenue decreased 23.7% year-on-year to 40.7 million pounds (or $ 56.8 million). Before tax, the numbers were 5.9 million pounds (or $ 8.2 million). In 2019, his profit is £ 24.4 million.

Its management board said the following:

“The two main factors that negatively affected our financial results in the period under analysis are: First, the gains from player negotiations are reduced, as we strive to keep our squad intact this season, and second, the unexpected, prolonged and devastating impact of Covid-19. “

Price / sales and club pricing indicators are 2.05 and 2.07 respectively. Given the rapid growth in share price in the year, there is likely to be some profit realization in the short term. Interested investors will find a better entry point at 120p.

2. Manchester United

Millions of fans on Manchester United (NYSE 🙂 They appear to be real “reds” from a young age, setting the backdrops and even the bedding in club colors. On match days, “they sing loudly, sing with pride, in victory, defeat or draw.”

In August 2012, MANU shares began trading on the New York Stock Exchange with an opening price of $ 14.05. In 2018, they reached a record high of $ 27.70. In this year’s cumulative score, the newspaper posted an increase of nearly 6%, roughly $ 17.8. Its market value is $ 2.9 billion.

In early March, Manchester United released his squad. Revenue was £ 172.8 million ($ 240.9 million), up 2.6% year-on-year. Operating profit was £ 48.5 million (or $ 67.6 million), up 32.9% year-over-year.

Management highlighted “the significant decrease in revenue on departure days compared to the previous year,” but stressed:

However, this decrease was offset by revenue from live broadcasts of matches with the participation in the UEFA Champions League. A large portion of this revenue can be attributed to the collective stages of the competition, which were completely disputed during the second quarter.

Manchester United are currently in second place in the Premier League. He was eliminated from the Champions League this year and is now competing in the European League.

We also wrote this article, on Thursday, Manchester United and Rome (MI 🙂 preparing to play the first match of the semi-finals. Villarreal and Arsenal are the other two teams in the race for decision, which will take place in Gdansk, Poland, on May 26. Match results are likely to affect Manchester United’s revenue.

Price / sales and club pricing indicators are 4.97 and 4.16 respectively. The current price rally is likely to continue in the near future.

Summary

Scottish player and coach William “Bill” Shankly once said:

“Some people think football is a game of life and death. I am sure the matter is much more serious than that. “

Millions of loyal fans will agree that they have been watching football for a long time. Some of these fans might consider buying shares in their teams, such as Celtic or Manchester United.

Investors who are not prepared to commit capital to CCP or MANU shares can look for an ETF that started trading its shares in March 2021. It is the fund. ETF Roundhill MVP Fund (NYSE: MVP), which showcases the world of professional sports.

Among his posts, there are several football teams from Europe. Among them are Manchester United, Juventus (MI 🙂 and AS Roma, from Italy; Borussia Dortmund (DE :), from Germany; Ajax Amsterdam (AS :), from Netherlands; Fenerbahce football (He 🙂 e Galatasaray Sportiv (IS: from Turkey.