How to Invest in Football Clubs

Few sports bring more enjoyment to more people than football does. The world’s biggest clubs are globally-recognized brands with a strong worldwide following. But relatively few people know that some clubs are listed on stock exchanges. This moneyland.ch guide explains which clubs you can invest in with the stock market, and what you should pay attention to.

Which football clubs are listed on stock exchanges?

The list of stock-listed football clubs is relatively negligible and only includes European and Turkish clubs (see Table 1). Currently, there are no Swiss football clubs whose stocks are listed on public exchanges (as per June 2024).

Table 1: Overview of football clubs that are listed on stock exchanges

*The company is domiciled in the Cayman Islands
Date: June 6, 2024.

How can I buy shares in football clubs?

In order to buy shares in exchange-listed stocks, you first need to have a stock brokerage account at a bank. Be aware that your bank may charge you fees when you buy or sell shares. In addition to brokerage fees for buy and sell orders, your bank may also charge you custody fees to hold your shares for you. On top of that, you are also charged a Swiss stamp tax when you buy shares using a Swiss bank. Note: Depending on which Swiss bank you use, some of the clubs listed in Table 1 may not be available.

Are there any ETFs that invest in football clubs?

Football clubs are included as components of some national and international stock indexes that you can invest in using exchange-traded funds (ETFs). But because the weighting of football club stocks in these indexes is very low, they have almost no impact on index performance.

There is no specialized index for football clubs, and no ETFs that invest primarily in football stocks. The Stoxx Europe Football Index, which included all exchange-listed European football clubs, was phased out in 2020.

Does football have investment potential?

Football is the most popular sport in the world, and there are no signs that its dominance will end in the near future. National top leagues like England’s Premier League reach a massive global audience. International club tournaments like the Champions League and national team tournaments like the FIFA World Cup and the UEFA European Football Championship are hugely popular. The best-known football clubs have nine-digit revenues and are household names around the world.

Investing in football clubs is primarily interesting for investors who have a good knowledge of football and the business behind the professional sport. If you are interested in football and keep tabs on the daily business of clubs, then you may be able to convert your knowledge into financial returns. In every other case, football club stocks should be considered primarily as fan memorabilia or merchandise.

What are the risks of investing in football clubs?

There are substantial short-term and long-term risks.

• The standard rules do not apply: The prices of football club stocks often do not depend on standard parameters like financial reports. Instead, they follow their own set of rules. Because of that, fundamental analysis plays a more minor role in determining future growth. Instead, changes in the stock’s price are much more strongly influences by events related to the sport, such as the club winning a championship or reaching a good ranking, or the transfer of a certain football player. Emotions play an exceptionally strong role in football stocks. For example, when Juventus Turin signed on the Portuguese superstar Christiano Ronaldo in 2018, the value of its stock skyrocketed. Even just the rumors that preceded the transfer already send the value of the stock through the roof.
• Volatility: Football stocks are highly speculative investments. It is impossible to accurately predict how the value of a stock will develop – and that is all the truer in the fast-moving and unpredictable world of professional soccer. Football clubs can very easily run into problems related to the sport, and these problems can quickly bring the club economic hardships. Additionally, the football business is heavily influenced by emotions.
• No diversification: The options for investing in professional football are few. Only a small number of football clubs are listed on stock exchanges, and there are no indexes or ETFs that track football clubs. That makes it impossible to spread your capital out across a diversified portfolio of different football stocks. The result is that your investment depends on the performance of just a handful of stocks.
• Currency exchange risks: At this point, there are no Swiss football clubs that list their shares on public stock exchanges. That means you are limited to investing in stocks that are denominated by foreign currencies. If the foreign currency loses value against the Swiss franc, your returns will be negatively impacted. On the other hand, there is always a chance that the currency will gain against the franc, which would positively impact your investment.

Considering the numerous risks involved, investments in football stocks should primarily be considered a means of supporting your favorite club, much like buying fan merchandise.

Is investing in football clubs profitable?

A 10-year comparison of historical performance reveals a very diverse picture: While some football stocks would have delivered exceptional returns to Swiss investors, others would have generated substantial losses (see Table 2). The stocks of Turkish teams Fenerbahce and Galatasaray Istanbul had exceptionally poor performance in Swiss francs, which is likely due to the strong devaluation of the Turkish Lira.

It would be problematic to come to any conclusions based on historical data alone. Historical performance can look very different depending on which timeframe is used for the comparison. As with other stocks, there is no sure way to predict future returns.

Table 2: Comparison of football club stock performance

The performance figures do not account for dividend distributions, stock exchange fees, and other investment costs. Dates for performance calculations: June 6, 2014 and June 6, 2024. Data sources: Investing.com, Onvista.de.

Are there other ways to invest in football clubs?

Some football clubs raise money by issuing bonds. When you buy bonds from a football club, you are effectively giving the club a loan. The club pays you interest at an agreed-on rate for a predetermined bond term, after which the loan is repaid. You can learn more about bonds in the moneyland.ch guide to investing in bonds.

While some clubs offer bonds with very high interest rates, you should be aware that there is an above-average risk that the borrower will not be able to repay the loan. Just the fact that a club is issuing bonds to raise money may already indicate that it is in financial difficulties. For that reason, football club bonds should also be considered fan merchandise and a way to support your team, rather than a sound investment. They are best suited to fans who want to support their favorite football club financially, with the odd chance of earning a return as a bonus.

Important note: The information in this article is provided for educational purposes only, and should not be considered investment advice. moneyland.ch does not accept any liability, financial or otherwise.

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