How can you earn from strategically investing in football in 2022?
March 18, 2022 (Investorideas.com Newswire) In the 2019/20 football season, clubs in Europe pooled a whopping revenue of 25.2 billion euros. Yes, there is stupid money in football, and everyone is enjoying a fair slice. This includes both those betting with accurate forecasts from sites like liontips.com and those investing in a club.
Oh, you felt you needed to be a billionaire to invest in a top European club? No!
In this guide, let us show you how everyday individuals can profitably invest in football.
1. Purchase the club's shares
Today, football clubs are not just a haven for those interested in kicking the round leather around. Instead, they have metamorphosed into business conglomerates over the years.
Because of their business acumen, many recognizable exchanges worldwide list these clubs' shares for public trading.
Apart from the entertainment, club supporters and potential investors can make money by buying and trading the club's shares.
Some of the leading football clubs with publicly listed shares for purchase include Manchester United ($2.8 billion market capitalization), Arsenal ($2.8 billion market capitalization), Juventus ($2 billion market capitalization), and Borrusia Dortmund ($655.8 million market capitalization).
Despite the knowledge of these publicly listed shares, you still need to find out more details about the shares offered by these football clubs. These details include the share price, Fan-share scheme, expected dividends, and the likes.
Some prices for a unit share may cost up to a thousand dollars, which is not affordable for some people. As a relief, some clubs offer a "fan-share scheme," especially if the prices of their shares are on the high side. This scheme allows the investors to purchase an affordable percentage of the shares.
In addition, some clubs pay dividends to their shareholders at the end of the calendar year or an agreed period.
Considering all these options and more, it's up to the investor to choose the best clubs to purchase shares for maximum returns.
2. Explore Fan-Ownership
In lieu of the aforementioned football club investment opportunity, another viable option is via fan ownership schemes.
Football clubs designed this scheme to allow fans to own part of the club. They also have a say in decision-making regarding the development of the club. This includes buying and selling players, stadium makeovers, and promotional campaigns.
Most football clubs today do not have private owners. Instead, they rely on this fan-ownership scheme to steer the club in the right direction. The fans saved some clubs on the brink of collapse.
An example is Real Oviedo in Spain, which plunged into financial distress but was saved by fans and ex-players. They contributed enough to keep the club afloat.
In addition, some clubs with private owners have incorporated this scheme, thereby giving the fan body a certain ownership percentage.
Some of the football clubs that are owned by the fans, either in part or whole, include Wycombe Wanderers, Lincoln City F.C., and Norwich City F.C.
Individuals interested in this scheme can register to be members of the fan club and pay the dues to be considered in expected dividends.
3. Consider An Outright Purchase (Private Ownership)
This is when a financially capable investor purchases a total stake in a football club. We can term this the most lucrative and financially rewarding football club investment option, as the investor dictates (most times, exclusively) the club's affairs as the owner.
Over the years, many business people have taken this route, most notably, the Russian billionaire, Roman Abramovich.
Abramovich bought the club in 2003 for £140 million.
Interestingly, according to Forbes, in a 2021 evaluation, the club was worth $3.2 billion, a massive return on investment for the business tycoon.
Besides finances, privately owning a football club lets you basically shape the club to your identity.
An example is Dale Vince, a green energy businessman who purchased Forest Green Rovers, an English fifth-tier club, in 2010. As an environmentalist, Vince brought his values to the club.
He bought solar panels for the stadium, introduced an organic pitch, vegan food for the players, and emphasized environmental awareness.
4. Sports Betting is also a delicious avenue
Since investments are made essentially to generate returns, punting may not be farfetched in achieving this. This is rather unorthodox but can be a good investment avenue if the right strategies are employed.
Here, the idea is to concentrate your betting equity on a particular club (or clubs), periodically analyze your risk ratios, and bet on the right markets.
If discipline and excellent strategies are correctly applied, the investors will enjoy returns on their bets.
Conclusion
Football is a universal language. More interestingly, it is now a global business with many investors rushing to make profits.
Outlined in this piece are the various ways an individual can invest in these football clubs, and not only get entertained, but also make good money.
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