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Football Fever: Investing in the Beautiful Game

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Football Fever Investing Infographic

Football Fever: Investing in the Beautiful Game

The very mention of football conjures up images of cheering fans from all corners of the world.

The global appeal of the game is undeniable, and it’s the strong support of fans that has propelled its growth into a multi-billion dollar industry.

Today’s infographic from Swissquote tracks how the sport has reached far and wide—even onto the stock exchange.

The Timeline of the Manchester United IPO

Manchester United is the largest publicly-traded football club in the world. The journey of its initial public offering (IPO) can be traced back almost 30 years.

  • 1991: Man United floats on the London Stock Exchange (LSE)
    It aims to raise £10 million, but falls short and finally raises £6.7 million.
  • 2003-2005: Malcolm Glazer acquires ownership of Man United
    This raises the club’s market capitalization to £790 million, and it delists from the LSE.
  • 2012: Man United lists on the New York Stock Exchange
    It aims to raise £62.8 million in this IPO, but surpasses this with a final raised value of £146.3 million. Interestingly, George Soros was the biggest investor in this deal, buying a nearly 2% stake in the club.

What makes a football team like Manchester United so attractive in the eyes of investors?

Over decades, a flourishing fan base from viewers to consumers has been the force behind the football industry’s success as a whole.

The Big Business of Football

FIFA, the international governing body of football, organizes and promotes all major tournaments. Its total revenue between 2015-2018 can be broken down into a few main components:

Revenue SourceAmount% of total
Broadcasting rights€2,800 million48%
Marketing rights€1,500 million27%
Accommodation and ticket sales€600 million11%
Licensing rights€500 million9%
Other revenue€300 million5%
Total: €5,800 million

In fact, 83% of this total revenue came from the 2018 Russia World Cup alone. This was viewed by approximately 3.6 billion people—nearly half the world’s population.

The World Cup’s revenue even rivals the combined strength of the top five European clubs. How do the five major clubs make their money?

ClubMatchdayBroadcastCommercial/ Sponsorships2019 Revenue
FC Barcelona€159M€298M€384M€841M
Real Madrid€145M€258M€355M€757M
Man Utd€121M€274M€317M€712M
Bayern Munich€92M€211M€357M€660M
Paris Saint-German€116M€157M€363M€636M
Total€633M€1.2B€1.8B€3.6B

As viewership climbs, broadcasting rights furiously grow too—presenting numerous investment opportunities in sponsorship on the pitch and on the screen.

Cashing in on Clubs

Manchester United (NYSE:MANU) set a new precedent for publicly-traded football clubs—with a market cap worth near €1.8 billion today.

Following Man United’s example, other major clubs have since gone public across Europe. As well, Asia presents an emerging opportunity as the sport’s regional popularity expands.

ClubStock TickerMkt Cap (Jul 31, 2020)
🇮🇹 Juventus FC S.p.AJUVE:IM€1.19B
🇩🇪 Borussia DortmundBVB:GR€511M
🇮🇹 AS RomaASR:IM€320M
🇬🇧 Celtic F.C.CCP:LN€108M (£97M)
🇨🇳 Guangzhou Evergrande TaobaoNEEQ:834338N/A
🇮🇩 Bali UnitedIDX:BOLA€57M (Rp894B)

China’s most valuable football club—backed in part by e-commerce giant Alibaba—closely matches the valuation of Manchester United.

In Southeast Asia, Bali United was the first team to go public in June 2019. Shares jumped 69% higher than the initial listing price upon its IPO. This move is already propelling more planned IPOs for more football teams in the region, such as Persija Jakarta—the 2018 Liga 1 champion—and Thailand’s Buriram United.

The Future of Football

Football has the power to stir passions and unite people—and it’s reinventing itself constantly.

The 2019 Women’s World Cup was the most watched in tournament history, with over 1.12 billion tuning in. FIFA plans to invest almost €454 million more into the women’s game between 2019-2022, and grow the number of female players to 600 million by 2026.

Additionally, the annual esports tournament eWorld Cup is taking place in Thailand in 2020—tapping into the esports boom in Asia, which hosts 57% of esports enthusiasts.

Any football fan will tell you that the beautiful game is more than just a sport. And for investors, there are a variety of ways to gain exposure to this market—meaning fans can be both personally and financially invested as it continues to grow.

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Technology

Companies Going Public in 2021: Visualizing IPO Valuations

Tracking the companies that have gone public in 2021 so far, their valuation, and how they did it.

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Companies Going Public in 2021 08 Share

Companies Going Public in 2021: Visualizing Valuations

The beginning of the year has been a productive one for global markets, and companies going public in 2021 have benefited.

From much-hyped tech initial public offerings (IPOs) to food and healthcare services, many companies with already large followings have gone public this year. Some were supposed to go public in 2020 but got delayed due to the pandemic, and others saw the opportunity to take advantage of a strong current market.

This graphic measures 47 companies that have gone public just past the first half of 2021 (from January to July)— including IPOs, SPACs, and Direct Listings—as well as their subsequent valuations after listing.

Who’s Gone Public in 2021 So Far?

Historically, companies that wanted to go public employed one main method above others: the initial public offering (IPO).

But companies going public today readily choose from one of three different options, depending on market situations, associated costs, and shareholder preference:

  • Initial Public Offering (IPO): A private company creates new shares which are underwritten by a financial organization and sold to the public.
  • Special Purpose Acquisition Company (SPAC): A separate company with no operations is created strictly to raise capital to acquire the company going public. SPACs are the fastest method of going public, and have become popular in recent years.
  • Direct Listing: A private company enters a market with only existing, outstanding shares being traded and no new shares created. The cost is lower than that of an IPO, since no fees need to be paid for underwriting.

So far, the majority of companies going public in 2021 have chosen the IPO route, but some of the biggest valuations have resulted from direct listings.

Listing DateCompanyValuation ($B)Listing Type
08-Jan-21Clover Health$7.0SPAC
13-Jan-21Affirm$11.9IPO
13-Jan-21Billtrust$1.3SPAC
14-Jan-21Poshmark$3.0IPO
15-Jan-21Playtika$11.0IPO
21-Jan-21Hims and Hers Health$1.6SPAC
28-Jan-21Qualtrics$15.0IPO
09-Feb-21Metromile-SPAC
11-Feb-21Bumble$8.2IPO
26-Feb-21ChargePoint Holdings$0.45SPAC
03-Mar-21Oscar Health$7.9IPO
10-Mar-21Roblox$30.0Direct Listing
11-Mar-21Coupang$60.0IPO
23-Mar-21DigitalOcean$5.0IPO
25-Mar-21VIZIO$3.9IPO
26-Mar-21ThredUp$1.3IPO
31-Mar-21Coursera$4.3IPO
01-Apr-21Compass$8.0IPO
14-Apr-21Coinbase$86.0Direct Listing
15-Apr-21AppLovin$28.6IPO
21-Apr-21UiPath$35.0IPO
21-Apr-21DoubleVerify$4.2IPO
05-May-21The Honest Company$1.4IPO
07-May-21Lightning eMotors$0.82SPAC
07-May-21Blade Air Mobility$0.83SPAC
19-May-21Squarespace$7.4Direct Listing
19-May-21Procore$9.6IPO
19-May-21Oatly$10.0IPO
26-May-21ZipRecruiter$2.4IPO
26-May-21FIGS$4.4IPO
01-Jun-21SoFi$8.7SPAC
02-Jun-21BarkBox$1.6SPAC
08-Jun-21Marqueta$15.0IPO
10-Jun-21Monday.com$7.5IPO
16-Jun-21WalkMe$2.5IPO
22-Jun-21Sprinklr$3.7IPO
24-Jun-21Confluent$9.1IPO
29-Jun-21Clear$4.5IPO
30-Jun-21SentinelOne$10.0IPO
30-Jun-21LegalZoom$7.0IPO
30-Jun-21Didi Chuxing$73.0IPO
16-Jul-21Blend$4IPO
21-Jul-21Kaltura$1.24IPO
21-Jul-21DISCO$2.5IPO
21-Jul-21Couchbase$1.4IPO
23-Jul-21Vtex$3.5IPO
23-Jul-21Outbrain$1.1IPO

Though there are many well-known names in the list, one of the biggest through lines continues to be the importance of tech.

A majority of 2021’s newly public companies have been in tech, including multiple mobile apps, websites, and online services. The two biggest IPOs so far were South Korea’s Coupang, an online marketplace valued at $60 billion after going public, and China’s ride-hailing app Didi Chuxing, the year’s largest post-IPO valuation at $73 billion.

And there were many apps and services going public through other means as well. Gaming company Roblox went public through a direct listing, earning a valuation of $30 billion, and cryptocurrency platform Coinbase has earned the year’s largest valuation so far, with an $86 billion valuation following its direct listing.

Big Companies Going Public in Late 2021

As with every year, some of the biggest companies going public are lined up for the later half.

Tech will continue to be the talk of the markets. Payment processing firm Stripe is setting up to be the year’s biggest IPO with an estimated valuation of $95 billion, and now-notorious trading platform Robinhood is looking to go public with an estimated valuation of $12 billion.

But other big players are lined up to capture hot market sentiments as well.

Electric truck startup Rivian Automotive (backed by Amazon) is estimated to earn a public valuation around $70 billion, which would make it one of the world’s largest automakers by market cap. Likewise, online grocery delivery platform InstaCart, which saw a big upswing in traction due to the pandemic, is looking at an estimated valuation of at least $39 billion.

Of course, there’s always a chance that potential public listings and offerings fall through. Whether they get delayed due to weak market conditions or cancelled at the last minute, anything can happen when it comes to public markets.

This post will be periodically updated throughout the year.

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Financing

Which Country is the Cheapest for Starting a Business?

These maps show the most (and least) costly countries for starting a business by relative costs.

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Cost of Starting A Business By Country Share

Which Country is the Cheapest for Starting A Business?

Starting a new business isn’t as simple as coming up with an idea.

In addition to the time investment needed to formulate and create a business, there’s often a hefty capital requirement. A new business usually requires paying different fees for licensing, permits, and approvals, and many governments also have minimum on-hand capital requirements.

And costs are relative. Though it might be more costly to start a business in some countries on paper, affordability also takes into account relative income.

These graphics from BusinessFinancing.co.uk use data from the World Bank’s Doing Business 2020 report to examine the startup cost for a small-to-medium-size LLC in the largest business cities across 190 countries.

The Cost of Starting a Business in Different Countries

From a pure cost perspective, the affordability of starting a business is extremely dependent on where you are located.

Some countries make the cost of business extremely low to encourage more economic activity. Others have high or nearly inaccessible fees to protect existing businesses, or to simply cash in on the entrepreneurial spirit.

CountryCost (2020 USD)% of Monthly Income
Venezuela0-%
Rwanda0-%
Slovenia0-%
Kyrgyzstan80.1
Sudan80.13
Timor Leste100.09
Azerbaijan110.04
Kazakhstan120.02
Ukraine120.06
Egypt130.07
South Africa130.03
Mauritania140.12
Uzbekistan140.13
Chile160.02
United Kingdom170.01
Belarus180.04
Pakistan200.16
Croatia270.03
Sierra Leone290.81
Armenia300.1
Burundi301.77
Iran310.09
Benin320.38
Liberia320.87
Niger320.78
Afghanistan330.86
Georgia330.1
Mongolia370.17
Romania380.05
Botswana400.08
New Zealand430.02
South Korea470.02
Kosovo49-%
Angola540.63
Togo561.29
Indonesia740.3
Bulgaria750.11
Moldova760.24
Mozambique762.09
Russia770.11
Congo (Democratic Republic of the)802.39
Ireland860.02
Lesotho860.89
Mauritius860.1
Lithuania900.07
Tunisia930.42
Belize990.33
Bhutan1000.45
Madagascar1002.72
Laos1050.68
Montenegro1050.16
Denmark1100.02
Serbia1120.24
Trinidad and Tobago1150.1
Malawi1174.72
Morocco1200.52
Zambia1201.28
Cameroon1251.24
Ghana1251.03
Vietnam1280.73
Tajikistan1361.86
China1380.21
India1420.98
Bangladesh1491.11
Ethiopia1503.21
Honduras1520.85
Czech Republic1580.13
Uganda1633.67
Canada1650.05
Argentina1670.21
Eritrea1744.63
Kiribati1740.7
Estonia1760.11
Sri Lanka1760.56
Turkey1770.28
Myanmar1791.73
Nepal1862.43
Jamaica1890.48
Thailand2010.43
North Macedonia2020.52
Algeria2030.79
Comoros2041.9
Greece2040.14
Slovakia2090.17
Brazil2180.35
Nigeria2231.68
Bahrain2310.14
Micronesia, Federated States of2310.82
Paraguay2320.61
Dominican Republic2330.39
Singapore2380.06
Taiwan239-%
Sweden2590.07
Tonga2620.78
Portugal2680.17
Latvia2870.25
Samoa2961
France3180.11
Tanzania3224.55
The Gambia3266.71
Libya3280.59
Guinea-Bissau3325.72
Senegal3433.35
Kenya3533.01
Peru3550.77
Costa Rica3630.4
Colombia3640.85
Brunei3660.18
Hungary3690.34
South Sudan3735.31
Palau375-%
Australia3770.1
Guinea3806.42
Poland3870.36
Philippines3891.44
Swaziland (Eswatini)4251.59
Guyana4361.29
Namibia4461.15
Papua New Guinea4592.71
Vanuatu4842.04
Mali4938.02
Oman5020.65
Hong Kong5121.2
Germany5240.16
Central African Republic52914.55
Malaysia5670.83
Zimbabwe5765.01
Chad59113.58
Albania5971.71
Marshall Islands610-%
Malta620-%
Japan6410.24
Fiji7051.65
United States of America7250.16
Panama7300.66
Spain7360.34
Cambodia7467.55
Finland7970.23
Yemen80810.7
Kuwait8140.31
Guatemala8192.63
Bosnia and Herzegovina8331.93
Seychelles8420.75
Jordan8602.67
Somalia900-%
Haiti94114.03
Gabon9472.18
Nicaragua9486.6
El Salvador9753.53
Dominica10732.31
Iceland10890.23
Barbados11590.92
Congo (Republic of the)122925.46
Israel12410.41
Saudi Arabia12670.81
Antigua and Barbuda1271-%
Bolivia12935.67
Luxembourg13430.27
Uruguay13441.13
Syria139210.41
Grenada1410-%
Mexico14502.34
Switzerland14630.27
Norway14820.27
Iraq15734.34
Cyprus15760.72
Liechtenstein1619-%
Ecuador16304.23
Bahamas18100.89
Netherlands21900.59
Equatorial Guinea23227.18
Belgium24020.74
Austria24750.71
Lebanon28555.35
Suriname303011.14
Qatar39520.92
San Marino4672-%
Italy48762.02
United Arab Emirates74442.23

At a glance, the cheapest regions for starting a business include Central Asia and Africa.

But the cheapest countries on the dollar for a new startup are Venezuela, Rwanda, and Slovenia. While the former does have fees that only total $0.21, both Rwanda and Slovenia have no fees for new businesses, though Slovenia does have a capital requirement of €7,500.

Expensive countries for new businesses are also spread across the world. There are some in Europe, including Italy at $4,876 and Austria at $2,475, as well as the Americas, including Suriname at $3,030 and Ecuador at $1,630.

The most expensive countries, however, are largely in the Middle East. They include #1 UAE at $7,444, #4 Qatar at $3,952, and #6 Lebanon at $2,855.

Which Country is the Most Affordable for Starting a Business?

Just as costs vary by country, so too does relative affordability.

Though some countries are cheaper than others for starting a business on the dollar, the picture changes when accounting for monthly income. When it comes to the cost of starting a business relative to monthly income, many developed countries take the cake.

Not including countries with missing data, the most affordable countries for starting a business include the UK, Denmark, and Ireland in Europe, South Korea in East Asia, and New Zealand in Oceania. Startup costs in each range from just 1%-2% of monthly income.

The picture is similar in the Americas, where Chile and Canada have the lowest relative fees at 2% and 5% of monthly income respectively. Even the U.S.—which has a decently high cost of $725 for starting a business—is relatively affordable at 16% of monthly income.

Some of the least affordable countries lie in the Middle-East and Central America. Haiti and Suriname have startup costs that are 1,403% and 1,114% of monthly income, while Yemen has affordability rates of 1,070%.

But the least affordable countries are in Africa. Many countries on the continent have startup costs that are more than 100% of monthly income, but the Republic of the Congo and the Central African Republic have affordability rates of 2,546% and 1,455% of monthly income, respectively.

Where is the best place to start a business? It can depend on the barrier to entry. But the biggest barrier takes time and ingenuity: finding the right idea at the right time.

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