Investing in Soccer: An opportunity for EVERYONE… Not Just the Great Ones (part 2)
Looking for new opportunities
Mariano Colmenar’s post on Investing in the World of Soccer showed us the great potential of the king of sports in Spain, Europe and the world.
More and more, news are coming in about investment opportunities around a market of 25 billion euros in Europe. Until now, investments in European soccer clubs have come from large companies in Russia, the Middle East and Asia. For example, Nasser Al-Khelaifi is the representative of the shareholder of the famous Qatar Sports Investments, owner of the French club Paris Saint Germain (PSG) and Abdullah ben Nasser Al Thani, from Malaga.
However, we cannot forget that large international funds such as the Chinese group (which bought AC Milan and its 220-million-euro debt) or the Great American Capital Partners (which bought Les Girondins) are starting to invest in Europe. In France alone, six clubs already belong to large non-European groups.
Why do soccer clubs are so attractive to institutional investors?
Because the clubs are for sale. The big local investors have stopped investing, but soccer has become a very interesting “product” for those institutional investors.
European leagues such as the Spanish, French and Italian ones offer interesting growth prospects, taking advantage of the growth of income generated, for example by television rights or big players’ clauses.
Many clubs have a strong growth potential by improving and professionalizing management, by taking advantage of brands and above all by diversifying their income.
Without a doubt, since 1990 the Premier League has become the most active league in Europe since the entry of private investors.
Is soccer investment only for big investors?
It seems that investing in soccer is only for the big ones. However, thanks to Equity Crowdfunding, anyone can now become an investor from just a few hundred euros.
At Fellow Funders, we believe that investing is not for the big guys, but for everyone. For this reason, we have been offering the Intercity CF round for a few days now. A team from Alicante recently acquired by a group of local businessmen who occupy the first place in the First Preferred Regional of the Valencian Community. With this round, it is expected to raise 1.2 million euros and bring the team to Second A in a couple of seasons. This would bring 10 million euros of income to the club’s coffers, which will raise its value almost exponentially from the current 600,000 euros.
In short: investment in soccer teams in the coming years by many individual investors will allow growth to be distributed across all and clubs not to be in the hands of a few. Another great advantage of Equity Crowdfunding.