• Skip to primary navigation
  • Skip to main content
  • Skip to primary sidebar
GO TO EXPAT LIVING SINGAPORE
GET OUR NEWSLETTER

Expat Living Hong Kong HomepageExpat Living Hong Kong

Moving to Hong Kong and not sure where to start? Expat Living is the essential lifestyle guide to living in Hong Kong.

Login Pelcro Shop

Menu
  • Living In Hong Kong
      • Living Here
      • Where To Live
      • Schools
      • For Guys
        • Private tutors in Hong Kong
        • Image of Chinese characters for article on tips for learning Mandarin Chinese languageSix steps to a magical Mandarin Story
        • International Women’s Day: Nominate Someone Special
        • Helping our communities learn to swim
      • View all
    Close
  • Things To Do
      • Things To Do
      • What’s On/Calendar
      • Competitions & Offers
        • KidsFest 2023 Hong Kong - Tabby McTatTop 35 Best Things To Do In Hong Kong This Weekend
        • 6 super reasons to visit sky100
        • Best playgrounds & parks for the kids
        • What to watch this month – Netflix & more!
      • View all
    Close
  • Kids
      • Activities & Things To Do
      • Education & Enrichment
      • Health & Wellness
      • Mums & Babies
      • Podcasts
        • Private tutors in Hong Kong
        • We chat with two GSIS families
        • A boarding school with wildlife on the doorstep!
        • Children's teeth and bracesKids and braces – all you need to know
      • View all
    Close
  • Homes
      • Home Décor
      • Readers Homes
        • A New Home in The New Territories
        • Transforming an old Hong Kong junk
        • Image of Altfield home furnishings showroomWhere to get designer home furnishings
        • Hong Kong People: Meet Laura Pezza
      • View all
    Close
  • Travel
      • Short Breaks
      • Further Afield
      • Travel News & Offers
        • Sequoia Lodge, AustraliaTravel Tips: Hot hotels for 2023
        • Mount KinabuluClimbing Mount Kinabalu in Sabah
        • Son Doong CaveJourney into the world’s largest cave
        • Famous movie locations in Asia - Hong Kong - Gage Street8 Famous Movie Locations in Asia
      • View all
    Close
  • Wine & Dine
      • Recipes & Groceries
      • Bars & Restaurants
        • Thai food at Monsoon restaurant in Hong KongRestaurant Review: Monsoon
        • 6 super reasons to visit sky100
        • Popcorn Shrimp with Spicy Honey Mayo
        • Indulgent chocolate cake - recipeRecipe: Indulgent Chocolate Cake
      • View all
    Close
  • Style & Beauty
      • Fashion
      • Hair & Beauty
        • Convertible clothing that can be mix-and-matched
        • where to get botox in hong kongBotox in Hong Kong – All you need to know
        • Where to buy (and sell!) watches
        • Face masks, spa products, body scrubsWe test body scrubs, creams, masks & more!
      • View all
    Close
  • Health & Fitness
      • Medical & Dental
      • Fitness
      • Wellness
        • dry eye disease - causes, symptoms and treatment for dry eyesDo you suffer from dry eyes?
        • family dental clinics and dentists in Hong KongFamily Dental Clinics and Dentists in HK
        • Children's teeth and bracesKids and braces – all you need to know
        • Safe & healthy eating during pregnancy
      • View all
    Close
  • Shop
    • Magazine
    • Advertise With Us
    • Close

How to invest in sport as an investment opportunity

8 March, 2017 by Justin Harper 3 Min Read

https://expatliving.hk/how-to-invest-in-sport-as-an-investment-opportunity/

'There aren't that many companies that can claim a higher brand loyalty than sport'
‘There aren’t that many companies that can claim a higher brand loyalty than sport’ 

While most men love watching and playing sport, some take it a step further and invest in it.

Professional sports leagues and teams are big business once you factor in their gate receipts, TV rights and clothing ranges and accessories. Some of the players themselves are as famous as movie stars, with multi-million dollar incomes from sponsorship deals and prize money. So what do you need to know before you look to get a piece of this lucrative action?

Like any other form of investment, there are risks involved in sports investing. Clubs, like companies, can rise or fall in value at the drop of a hat. But there are also some very positive fundamentals. Sports teams, be they football, rugby or cricket, have a strong emotional attachment with their audiences. There aren’t a lot of companies that can claim a higher brand loyalty to their businesses. Typically, this means a fan’s dollars will follow their hearts. Viewing of live sporting events on mobile devices is growing rapidly, as well as on satellite radio and pay-per-view TV. All of these distribution channels are revenue drivers for these businesses.

Another major advantage that big sports teams have is that they enjoy repeat business; most people don’t just own one t-shirt of their favourite team, they own several, buying a new (and costly) strip each year. Many families pass down season tickets to their children, instilling further brand loyalties for future generations.

However, on the downside, sports teams are not immune from economic shocks. Demand for sports entertainment depends on the economic climate. The sluggish recovery of the world economy has hurt attendances at many sporting events. Then there are the regular sports scandals that can see a team’s or star player’s value plummet overnight.

While you may not be able to invest directly in stars like Tiger Woods, taking a punt on Nike which is major sponsor of the US golfer could be an indirect way to cash in on his regained popularity. Nike, like fellow sportswear giant Adidas, is a publicly-listed company.

Another indirect way to invest in your favourite sports team or player is via collectibles. Football cards, autographed balls and boots along with seats from old stadiums can be worth a small fortune, especially if they have an interesting history.

In the most recent edition of Deloitte’s annual “Football Money League”, published earlier this year, Real Madrid were crowned winners, completing a record breaking 9th consecutive year at the summit with revenues of €518.9m. The key to Real Madrid’s success has been their ability to generate significant commercial revenue on a global scale.

The total revenue of Europe’s top 20 earning football clubs is now set to top €5bn annually. While the majority of the top clubs remain privately owned, several of Europe’s elite clubs are publically listed: Celtic is listed on AIM, Manchester United is listed on NYSE, AS Roma and Juventus Football Club are both listed on Borsa Italiana, while Germany’s Borussia Dortmund is on Xetra.

 

Real Madrid, winners of Deloitte's Football Money League
Real Madrid were crowned winners of Deloitte’s ‘Football Money League’ 

Favourite EPL team Manchester United endured a tough first season without Sir Alex Ferguson both on and off the pitch. The immediate aftermath of Sir Alex Ferguson’s retirement in May last year led to a fall in Manchester United’s share price by almost six percent to a day’s low of $17.73, reducing the club’s value by almost £100m.

The share price, like United’s performances post-Ferguson, has been volatile ever since. Expiring sponsorship deals such as Hublot, the luxury watchmaker and failure to qualify for the lucrative Champion’s League have all taken their toll. This saw the share price tumble to a low of around $14 in January. At the time of writing it was above $16, showing some slight recovery despite the team’s patchy start to the 2014/15 season.

Manchester United was on the PR offensive after their January low, announcing the club would seek lucrative friendlies in the Middle East, the US and India if they failed to salvage European qualification. The tour of India seemed to particularly interest investors. The club claims to have 35 million followers in the country although previous efforts to visit India have always proved difficult in pre-season.

Sadly, United’s strong title rivals Chelsea and Manchester City are both privately owned by rich tycoons so no chance of cashing in on their success anytime soon.

Arsenal shares, on the other hand, are publically traded – but be warned, they’re not cheap. One share will set you back around £15,000, so you’ll need to start saving up. Arsenal shares can be bought and sold through the independent “Fanshare” scheme, or directly on the ISDX market.

However, rather than being a money-making venture, the shares are designed for Arsenal fans to have a stake in the ownership of the club. The largest individual shareholder of Arsenal shares is American business entrepreneur Stan Kroenke, who owns more than 66 percent of the club.

 

Categories: Living Here Things To Do

Get the latest events, stories and special offers
sent to your inbox.

By signing up, you'll receive our bimonthly newsletters and offers, which you can unsubscribe to anytime.

You May Also Like

Image of Chinese characters for article on tips for learning Mandarin Chinese language

Six steps to a magical Mandarin Story

Sailing in Hong Kong - inclusive sailing courses by charity Sailability

Making sailing accessible to everyone

A New Home in The New Territories

Primary Sidebar

  • COMPETITIONS & OFFERS
  • About
  • Advertise
  • Contact
  • Privacy
  • Subscribe

© 2023 Expat Living Hong Kong, All Rights Reserved.