Sports are changing rapidly. At one point, a team is very popular and after two seasons, they are almost forgotten by the media, the only ones caring being the fans. What does that do to a club’s value? Does their stock price drop? Can you even purchase stocks of a sports club?
Yes, sports clubs have their own value and people can purchase stocks if they should desire to do so. But one should not purchase stocks if they do it for the sole reason of wanting them to go up. It does not work that way the same way a team does not have to win if you like it. The opinion of an individual does not change the way teams perform or the way the stock market moves.
Purchasing stocks should be a business decision.
Can you Buy Sports Club Stocks?
Yes, you can, but depending on the club, some stocks are more difficult to purchase, and require a larger procedure than you would in any other publicly owned companies. Private companies make it difficult for anybody to purchase a share. Sure, they could do it, but they would also need to invest a lot of money.
Public companies allow their shares to be traded on the stock market. People can willingly purchase those shares and become percentage owners, depending on how many shares they purchase. The more shares a person purchases, the more ownership they have over a certain business.
Sports clubs are sometimes publicly owned, but not all of them. Only recently have five football clubs been listed on the stock market, like Manchester United, A.S. Roma, Borussia Dortmund, Lazio and Juventus. A person could easily purchase shares in these clubs should they wish to do so.
Is it Worth Purchasing Sports Club Stocks?
It depends on the club and its position on the ladder. Purchasing a club when it is performing poorly and showing no signs of improving is a very good way to lose money. If a club’s future is looking up, for example, with a revitalized roster, then purchasing shares is well worth it. Shares should be purchased tactically and not just because being the fan of a club is the most important thing in the world. Emotional betting or stock purchase should never be done.
Analyzing the club and its potential future should be a priority. Public clubs disclose their information so one can easily track their progress.
Should You Purchase Shares of Only Popular Clubs?
Well, no. Not all popular clubs are doing great. Sometimes, they have an entire decade of bad or mediocre performances. Finishing top five or six and never higher or lower is not really a sign of a successful club. Things do change and great clubs drop down while some weaker ones rise. Popular clubs are also expensive and their shares will cost more than those of upcoming clubs.
Since upcoming clubs are unlikely to be present in Europe due to a very rich and saturated football market, for example, looking to the east should be a top priority. Eastern clubs are forming all the time, especially in China. Buying shares in the eastern market can be more profitable than in the already saturated and relatively established western one.
You can purchase shares of sports clubs but they might not bring you the money you want. The value of a club rises and drops with their performance. New clubs are being formed, so looking towards those might be a better business investment than the already gigantic ones.