over 4 years ago • 2 mins
Superstar soccer club Manchester United reported its latest set of earnings on Tuesday, following Italian rival Juventus’s results last week – and investors gave both clubs a yellow card 📒
They say soccer is a game of two halves. For Manchester United, it’s more like four quarters: that’s how often the English club has to update investors on financial performance since it listed shares on the New York stock exchange in 2012.
Man Utd’s had a tough time on the pitch recently, and failure to qualify for Europe’s Champions League may mean a tough time off it too. While the club raked in a record $780 million in the twelve months to July, revenue in the subsequent year will likely fall for the first time since 2014. Virtually all 2018-19’s 8% increase was due to Champions League television money that Man Utd won’t see this year 😢
Big-league broadcast cash is even more important for Juventus, especially after it spent $130 million signing star player Cristiano Ronaldo last year. The highest-revenue club in Italy said last week that losses doubled in 2018-19, with debt ballooning to $500 million. But Man Utd, where wages are also rising, may soon join Juventus in being eclipsed by FC Barcelona. The Spanish team took $1.1 billion in revenue for 2018-2019, and is on track to topple the Red Devils as the world’s most profitable big soccer club...
Soccer clubs used to be famously bad investments for their often multimillionaire owners. But as revenues have increased, shares of some have comfortably beaten the wider market. Juventus’s stock has quadrupled in the last three years.
Manchester United’s stock has now sunk 8% in 2019. Still, it could be worse: since Italy’s AS Roma “went public” in 2000, its share price has fallen 75%. Investing in soccer could be worth a punt, but remember: it’s a game of two halves 😉
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