Do you know the value of the football club you love so much?

Do you know the value of the football club you love so much?

Who’s your favourite football team? Red Devils? The Gunners? Los Blancos? Why do you love them so much? Have you purchased any merchandise from them? Perhaps a very expensive jersey… Maybe a jacket… Maybe a good quality polo shirt… Have you visited the club’s home; the football stadium? How about planning for a visit very soon?

All these love(s) you show meant that the club is able to generate more incomes. It could be from ticket sales, could be from merchandise sales, could be from sponsorships and more. The more fans the club has, the more potential revenues it could generate and thus the higher the sponsorship too. The below would be the top 10 most expensive football brands in the world.

They have a brand value which is in the BILLIONS.

Can you buy into these football clubs?

There are many listed clubs in the world but out of the top 10 above, it seems that just Manchester United is listed. Their share price did perform very well when it was up for sale and currently has a new shareholder in Sir Jim Ratcliffe. The share price has since moved down and based on the latest stats from google.com as below, the share price is down by close to 5 percent versus 5 years ago.

Where does the revenue for Manchester United come from?

It comes from Commercial which includes selling merchandise, licensing of their brand for products and others. It comes from Broadcasting which is revenue sharing among all the English Premier League teams. The more people watch the match on tv, the more revenues the tv could get from advertising and thus the higher the share to the football teams. Lastly the number of people coming to see the match; the tickets revenue. With a loyal fan base, it’s possible to increase the ticket price slowly and this will help to drive higher revenues too.

Happy investing.

p/s: I am NOT a Manchester United supporter. I support good managers including Eddie Howe and also Mourinho too.

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