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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

The World’s Tech Giants, Ranked by Brand Value

Tech giants and e-commerce brands are thriving—and running circles around less pandemic-proof brands.

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The World’s Tech Giants, Ranked by Brand Value

The pandemic has businesses everywhere on the ropes, with many firms filing for bankruptcy since lockdowns began. Despite the uncertainty, tech giants and major digital retail brands are still thriving—and some are running circles around those that are less pandemic-proof.

Using data from Kantar and Bloomberg, a recent brand report released by BrandZ shows which tech companies are proving their worth to consumers during COVID-19 chaos. With data covering almost 4 million consumers, BrandZ also reveals that the tech sector leads the world’s 100 most valued brands in terms of financial power and consumer sentiment.

Here’s how the top 20 tech brands from the report stack up:

RankCompanyBrand Value (2020)Change (%)
#1🇺🇸 Apple$352 billion+14%
#2🇺🇸 Microsoft$327 billion+30%
#3🇺🇸 Google$324 billion+5%
#4🇨🇳 Tencent$151 billion+15%
#5🇺🇸 Facebook$147 billion-7%
#6🇺🇸 IBM$84 billion-3%
#7🇩🇪 SAP$58 billion0%
#8🇺🇸 Instagram$42 billion+47%
#9🇺🇸 Accenture$41 billion+6%
#10🇺🇸 Intel$37 billion+17%
#11🇺🇸 Adobe$36 billion+29%
#12🇰🇷 Samsung$33 billion+7%
#13🇺🇸 Salesforce$30 billion+13%
#14🇺🇸 LinkedIn$30 billion+31%
#15🇨🇳 Huawei$29 billion+9%
#16🇺🇸 Oracle$27 billion+2%
#17🇺🇸 Cisco$26 billion-9%
#18🇺🇸 Dell$18 billion-2%
#19🇨🇳 Xiaomi$17 billion-16%
#20🇨🇳 Baidu$15 billion-29%

Out of the top five tech brands, Microsoft made the biggest moves with 30% brand value growth. Other big movers in the top 20 were Instagram (owned by Facebook), Adobe, and LinkedIn (owned by Microsoft), rising 47%, 29%, and 31%, respectively.

Broken down by nation, U.S. brands are dominating tech’s heavy hitters, claiming 14 of the world’s top 20 tech brands. Chinese brands round out much of the remaining top 20, including tech entertainment and social media giant Tencent, which rose 15% in brand value since 2019.

Big Tech’s Heavyweights

Tech’s top brands are raking in billions of dollars, capturing consumer mindshare, captivating people, and comforting them during volatile months. Apple, Microsoft, Google, Tencent, and Facebook—tech’s leading contingent—have made those moves look easy during what are rough times for many world brands. 

While most tech brands in the upper half of the top 20 saw significant increases in brand value, only Facebook and IBM were in decline from 2019, at -7% and -3% respectively. The biggest loss in tech’s top 20 came from China’s Baidu, which fell by -29% in 2020.

Waning consumer trust, thanks in part to the perceived misuse of personal data, is a gap that tech’s popularity alone won’t fill forever. (Following the Cambridge Analytica scandal, nearly 25% of Facebook account holders reported being “extremely” or “very” concerned about their personal data.)

Pandemic-Proof Applications

Coming in at eighth place, Facebook-owned Instagram gained 47% in brand value—a huge percentage, but less than the whopping 95% growth it had in 2019.

On the whole, digital apps have been faring well during the pandemic, especially those built for entertainment, shopping, social connection, and delivery.

These brands had anticipated, even invented, the online-offline dynamics of modern life that became indispensable for survival during the lockdown homebound weeks of avoiding the contagion. 

— BrandZ 2020 Global Top 100 Report

Top Brands, by Category

While the brand value growth rates of tech giants aren’t entirely immune to the effects of COVID-19, the likes of Apple, Microsoft, and Google are growing steadily, surpassed only by e-commerce leader Amazon. 

With data collected into April 2020, BrandZ’s report on the world’s top 100 brands reflects multiple shifting needs and consumer concerns at a categorical scale. 

While consumer affinity for e-commerce and social media brands has increased, fast food and beer brands took a hit, despite reports of increased alcohol consumption and food delivery during lockdown. It would seem then, that consumers have been valuing their tools and means of consumption.

Of the report’s 14 brand categories, only six increased in value, mostly by less than 5%. Of the top risers, six were tech brands and six were mainly e-commerce. 

Other upwardly mobile brands were those in the apparel and personal care categories. Much like retail, those categories had an increasing reliance on technology to deliver their products. 

The above chart shows overall categorical changes for 2020 led by retail, tech, and insurance. In the opposite corner, energy, and bank brands took the biggest hits.

Rolling with the Punches

The economic impacts of COVID-19 are undeniable. Even still, BrandZ’s top 100 brands marked a steady increase of 6% in value in 2020, compared to 7% the previous year.

This pandemic has offered up era-defining change, with tech and e-commerce seizing the day. But in a climate where nothing can be taken for granted, brands large and small are still taking their knocks.

For now, the brands that are embraced by consumers will be those that can apply a salve to the blows that 2020 keeps delivering. 

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Business

Ranked: The 50 Most Innovative Companies

Companies need to adapt quickly to changing markets in order to thrive. Here’s a look at the top 50 most innovative companies in 2020.

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Ranked: the Top 50 Most Innovative Companies in 2020

Corporate longevity is on the decline. In the 1960s, a typical S&P 500 company was estimated to last more than 60 years—these days, the average lifespan is just 18 years.

In today’s fast-paced world, companies need to stay relevant in order to survive. Because of this, it’s become increasingly more important for businesses to prioritize innovation.

This chart looks at the top 50 most innovative companies in 2020, based on a survey by Boston Consulting Group (BCG). The companies have been ranked based on four variables:

  • Global “Mindshare”: The number of votes from all innovation executives.
  • Industry Peer Review: The number of votes from executives in a company’s industry.
  • Industry Disruption: A diversity index to measure votes across industries.
  • Value Creation: Total share return.

Breakdown of the Leaderboard

BCG has been ranking the most innovative companies since 2005. Here’s a look at the top 50 most innovative companies in 2020:

RankCompanyIndustryHQChange from 2019
1AppleTechnologyU.S.2
2AlphabetTechnologyU.S.-1
3AmazonConsumer GoodsU.S.-1
4MicrosoftTechnologyU.S.-
5SamsungTechnologySouth Korea-
6HuaweiTechnologyChina42
7AlibabaConsumer GoodsChina16
8IBMTechnologyU.S.-1
9SonyConsumer GoodsJapanreturn
10FacebookTechnologyU.S.-2
11TeslaTransportation & EnergyU.S.-2
12Cisco SystemsTechnologyU.S.5
13WalmartConsumer GoodsU.S.29
14TencentOtherChinareturn
15HP Inc.TechnologyU.S.29
16NikeConsumer GoodsU.S.return
17NetflixOtherU.S.-11
18LG ElectronicsConsumer GoodsSouth Korea-
19IntelTechnologyU.S.return
20DellTechnologyU.S.21
21SiemensOtherGermany-5
22TargetConsumer GoodsU.S.return
23PhilipsPharmaceuticals & MedtechNetherlands6
24XiaomiTechnologyChinareturn
25OracleTechnologyU.S.return
26Johnson & JohnsonPharmaceuticals & MedtechU.S.-12
27SAPTechnologyGermany1
28AdidasConsumer GoodsGermany-18
29HitachiTechnologyJapanreturn
30CostcoConsumer GoodsU.S.return
31JD.comConsumer GoodsChinanew
32VolkswagenTransportation & EnergyGermany6
33BoschTransportation & EnergyGermanynew
34AirbusTransportation & EnergyNetherlandsreturn
35SalesforceTechnologyU.S.-2
36JPMorgan ChaseOtherU.S.-16
37UberTechnologyU.S.return
38BayerPharmaceuticals & MedtechGermany-14
39Procter & GambleConsumer GoodsU.S.return
40Royal Dutch ShellTransportation & EnergyNetherlands-10
41ToyotaTransportation & EnergyJapan-4
42NestleConsumer GoodsSwitzerlandreturn
43ABBOtherSwitzerlandnew
443MOtherU.S.-5
45UnileverConsumer GoodsU.K.-13
46FCATransportation & EnergyU.K.new
47NovartisPharmaceuticals & MedtechSwitzerlandnew
48Coca-ColaConsumer GoodsU.S.return
49VolvoTransportation & EnergySwedennew
50McDonald’sConsumer GoodsU.S.-29

When you think about innovative companies, Walmart might not be top of mind. However, the retail giant has moved up to the 13th spot on the list, an increase of 29 places since 2019.

Walmart has put significant efforts into its e-commerce and omnichannel offerings. For instance, the company launched NextDay Delivery in 2020, and now offers one-day delivery to a majority of the U.S. population. The company also has a stake in the Chinese e-commerce platform JD.com, which has grown from 5% to 12%.

Costco makes it to 30th place this year, and the company is known for its effective use of data. Thanks to the company’s members-only model, it has been able to compile a ton of information on its customers. It uses this data not only for marketing purposes, but to help streamline processes like recall notices. Costco also uses data monitoring sensors in its warehouses to save money on water usage and to spot any potential leaks before they happen.

Another company worth touching on is Huawei—the Chinese tech company has taken the 6th spot, a 42 rank increase since 2019. This rise in the ranks is likely due to the company’s significant $19 billion investment in research and development (R&D) in 2019. These types of investments seem to be paying off, as Huawei sold more smartphones in 2019 than Apple.

Innovation Leaders Come in All Sizes

While people may picture startups when they think of innovation and adaptability, big firms aren’t lagging far behind when it comes to innovation output.

In this context, firms with new product sales above their industry median are considered “innovation leaders.” Although 52% of small firms are considered innovation leaders, 43% of large firms still find themselves in the same boat.

Small vs. big firms innovation leaders

In fact, because larger firms generally have more access to resources and manpower than smaller firms, they often have an advantage when it comes to research and development and the creation of innovation-focused programs.

Investing in innovation shows a far greater payoff down the line—firms that invested 1.4x more in innovation input saw 4x the amount of new products sales.

Innovation investment pays off

Innovation as a Lifestyle

Unless you’re in a startup that’s hoping to get acquired by a larger firm, innovation can’t be a one-hit-wonder. Yet, despite its importance, innovation over the long term is hard to maintain.

There have only been 8 companies that have appeared on the list every year. Here’s a look at the companies that have consistently made the cut since 2005:

These companies are serial innovators, and have managed to create innovation systems to perpetually foster creativity and agility. It’s an intentional, laborious process—but when done right, the payoff can be huge.

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