The very mention of football conjures up images of cheering fans from all corners of the world.
The global appeal of the game is undeniable, and it’s the strong support of fans that has propelled its growth into a multi-billion dollar industry.
Today’s infographic from Swissquote tracks how the sport has reached far and wide—even onto the stock exchange.
The Timeline of the Manchester United IPO
Manchester United is the largest publicly-traded football club in the world. The journey of its initial public offering (IPO) can be traced back almost 30 years.
1991: Man United floats on the London Stock Exchange (LSE) It aims to raise £10 million, but falls short and finally raises £6.7 million.
2003-2005: Malcolm Glazer acquires ownership of Man United This raises the club’s market capitalization to £790 million, and it delists from the LSE.
2012: Man United lists on the New York Stock Exchange It aims to raise £62.8 million in this IPO, but surpasses this with a final raised value of £146.3 million. Interestingly, George Soros was the biggest investor in this deal, buying a nearly 2% stake in the club.
What makes a football team like Manchester United so attractive in the eyes of investors?
Over decades, a flourishing fan base from viewers to consumers has been the force behind the football industry’s success as a whole.
The Big Business of Football
FIFA, the international governing body of football, organizes and promotes all major tournaments. Its total revenue between 2015-2018 can be broken down into a few main components:
Revenue Source
Amount
% of total
Broadcasting rights
€2,800 million
48%
Marketing rights
€1,500 million
27%
Accommodation and ticket sales
€600 million
11%
Licensing rights
€500 million
9%
Other revenue
€300 million
5%
Total: €5,800 million
In fact, 83% of this total revenue came from the 2018 Russia World Cup alone. This was viewed by approximately 3.6 billion people—nearly half the world’s population.
The World Cup’s revenue even rivals the combined strength of the top five European clubs. How do the five major clubs make their money?
Club
Matchday
Broadcast
Commercial/ Sponsorships
2019 Revenue
FC Barcelona
€159M
€298M
€384M
€841M
Real Madrid
€145M
€258M
€355M
€757M
Man Utd
€121M
€274M
€317M
€712M
Bayern Munich
€92M
€211M
€357M
€660M
Paris Saint-German
€116M
€157M
€363M
€636M
Total
€633M
€1.2B
€1.8B
€3.6B
As viewership climbs, broadcasting rights furiously grow too—presenting numerous investment opportunities in sponsorship on the pitch and on the screen.
Cashing in on Clubs
Manchester United (NYSE:MANU) set a new precedent for publicly-traded football clubs—with a market cap worth near €1.8 billion today.
Following Man United’s example, other major clubs have since gone public across Europe. As well, Asia presents an emerging opportunity as the sport’s regional popularity expands.
China’s most valuable football club—backed in part by e-commerce giant Alibaba—closely matches the valuation of Manchester United.
In Southeast Asia, Bali United was the first team to go public in June 2019. Shares jumped 69% higher than the initial listing price upon its IPO. This move is already propelling more planned IPOs for more football teams in the region, such as Persija Jakarta—the 2018 Liga 1 champion—and Thailand’s Buriram United.
The Future of Football
Football has the power to stir passions and unite people—and it’s reinventing itself constantly.
The 2019 Women’s World Cup was the most watched in tournament history, with over 1.12 billion tuning in. FIFA plans to invest almost €454 million more into the women’s game between 2019-2022, and grow the number of female players to 600 million by 2026.
Additionally, the annual esports tournament eWorld Cup is taking place in Thailand in 2020—tapping into the esports boom in Asia, which hosts 57% of esports enthusiasts.
Any football fan will tell you that the beautiful game is more than just a sport. And for investors, there are a variety of ways to gain exposure to this market—meaning fans can be both personally and financially invested as it continues to grow.
Announcing his retirement on Twitter, Casillas said: "The important thing is the path you travel and the people who accompany you, not the destination to which it takes you.
"I think I can say, without hesitation, that it has been the path and the dream destination."
Real Madrid said Casillas, who joined the Spanish giants at the age of nine, was the best goalkeeper in the 118-year history of the club.
"Real Madrid wants to show its appreciation, admiration and love for one of the greatest legends of our club and world football," read a statement on the club's website.
"Iker Casillas belongs to the heart of Real Madrid and will be so forever."
Comments
Football Fever: Investing in the Beautiful Game
The very mention of football conjures up images of cheering fans from all corners of the world.
Today’s infographic from Swissquote tracks how the sport has reached far and wide—even onto the stock exchange.
The Timeline of the Manchester United IPO
Manchester United is the largest publicly-traded football club in the world. The journey of its initial public offering (IPO) can be traced back almost 30 years.
It aims to raise £10 million, but falls short and finally raises £6.7 million.
This raises the club’s market capitalization to £790 million, and it delists from the LSE.
It aims to raise £62.8 million in this IPO, but surpasses this with a final raised value of £146.3 million. Interestingly, George Soros was the biggest investor in this deal, buying a nearly 2% stake in the club.
What makes a football team like Manchester United so attractive in the eyes of investors?
Over decades, a flourishing fan base from viewers to consumers has been the force behind the football industry’s success as a whole.
The Big Business of Football
FIFA, the international governing body of football, organizes and promotes all major tournaments. Its total revenue between 2015-2018 can be broken down into a few main components:
In fact, 83% of this total revenue came from the 2018 Russia World Cup alone. This was viewed by approximately 3.6 billion people—nearly half the world’s population.
The World Cup’s revenue even rivals the combined strength of the top five European clubs. How do the five major clubs make their money?
As viewership climbs, broadcasting rights furiously grow too—presenting numerous investment opportunities in sponsorship on the pitch and on the screen.
Cashing in on Clubs
Manchester United (NYSE:MANU) set a new precedent for publicly-traded football clubs—with a market cap worth near €1.8 billion today.
Following Man United’s example, other major clubs have since gone public across Europe. As well, Asia presents an emerging opportunity as the sport’s regional popularity expands.
China’s most valuable football club—backed in part by e-commerce giant Alibaba—closely matches the valuation of Manchester United.
In Southeast Asia, Bali United was the first team to go public in June 2019. Shares jumped 69% higher than the initial listing price upon its IPO. This move is already propelling more planned IPOs for more football teams in the region, such as Persija Jakarta—the 2018 Liga 1 champion—and Thailand’s Buriram United.
The Future of Football
Football has the power to stir passions and unite people—and it’s reinventing itself constantly.
The 2019 Women’s World Cup was the most watched in tournament history, with over 1.12 billion tuning in. FIFA plans to invest almost €454 million more into the women’s game between 2019-2022, and grow the number of female players to 600 million by 2026.
Additionally, the annual esports tournament eWorld Cup is taking place in Thailand in 2020—tapping into the esports boom in Asia, which hosts 57% of esports enthusiasts.
Any football fan will tell you that the beautiful game is more than just a sport. And for investors, there are a variety of ways to gain exposure to this market—meaning fans can be both personally and financially invested as it continues to grow.
Iker Casillas: Former Real Madrid and Spain goalkeeper retires from football
Former Real Madrid and Spain goalkeeper Iker Casillas has retired from football at the age of 39.
Casillas made 725 appearances for Real during a 16-year career at the Bernabeu, winning three Champions League titles and five La Liga crowns.
He also helped Spain win the 2010 World Cup and two successive European Championships in 2008 and 2012.
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Announcing his retirement on Twitter, Casillas said: "The important thing is the path you travel and the people who accompany you, not the destination to which it takes you.
"I think I can say, without hesitation, that it has been the path and the dream destination."
Real Madrid said Casillas, who joined the Spanish giants at the age of nine, was the best goalkeeper in the 118-year history of the club.
"Real Madrid wants to show its appreciation, admiration and love for one of the greatest legends of our club and world football," read a statement on the club's website.
"Iker Casillas belongs to the heart of Real Madrid and will be so forever."
So are the spammers