Sports Business

Europe soccer investors just as irrational as fans

17 April 2019

Juventus lost 270 mln euros of market value after the Italian club’s surprise exit from the UEFA Champions League. Victorious Dutch rival Ajax gained just a tenth of that amount. Television revenue alone does not explain the swing. Shareholders, like supporters, are overreacting.

The Exchange: Fomenting rugby fever in Hong Kong

26 March 2019

As the city braces for the annual Sevens showdown, organiser Robbie McRobbie tells Breakingviews what the event reveals about its host. From fancy dress and fancier corporate suites, to a real estate dilemma, the sports extravaganza tracks the financial hub’s health and wealth.

Rugby’s dilemma: take the penalty or go for a try

19 March 2019

Buyout group CVC has bid 500 million pounds for a 30 pct stake in the sport’s Six Nations Championship. Rugby’s governing body envisages a grander global tournament without surrendering control. Who prevails depends on how desperate a few European unions are for cash.

Review: UK soccer’s crunching financial challenge

15 March 2019

After decades of exponential growth, the Premier League is leaderless and faces stagnant TV income at home. “The Club” shows how it became the world’s most popular sports league and gives clues as to what’s next. Wealthy owners may take top teams even further away from home fans.

Man City’s long game in China can yield a win

21 February 2019

A consortium including the Manchester soccer club’s owner has acquired third-tier Sichuan Jiuniu FC. It's a modest punt, and the first by a Premier League heavyweight in the mainland game. Local allies and experience in multiple countries set the buyer up for financial success.

Next Premier League CEO will start one goal behind

17 January 2019

A second candidate refused English soccer’s top job. It’s a tough role since Sky and BT are loath to keep bankrolling the sport, Amazon is sitting on the sidelines and rowdy soccer-club chairmen have to be tackled. Whoever takes the job will know the league’s glory days are past.

Hadas: Governance gold would help the Olympics

17 January 2019

A new probe into how Tokyo won the 2020 summer games feels sadly familiar. Persistent wrongdoing at executive and athletic levels arises from a toxic mix of money, symbolism and hypocrisy. That can’t be changed, but the Olympic “faster, higher, stronger” motto offers guidance.

A century on, bet on a new Black Sox-like scandal

2 January 2019

Legalized U.S. sports wagering is set to soar after a court cleared the way. Bringing some of the $150 bln gambling market out of the shadows has merit, but also raises the stakes – and temptations. Odds are improving for an incident like the baseball-fixing disgrace of 1919.

Tencent will become world e-sports champion

27 December 2018

The global $1 bln competitive video-game market will reach a new level in 2019. As audiences for “League of Legends” tournaments pull even with the NFL, ad revenue will post explosive growth. That will fund Tencent’s expansion of its overseas franchise.

A Trump versus Xi wrestling match might just help

26 December 2018

Maybe not a real one. But Tencent could tag-team with WWE to build Chinese versions of Triple H and The Undertaker, and vent a bit of trade tension. The $370 bln tech giant would make a burly partner; Tencent would score a PR coup, plus Trump access via co-founder Linda McMahon.

Anta deal enters arena of extreme financial sports

13 December 2018

Instead of a straightforward acquisition, the Chinese company structured a $5.2 bln LBO of Finland’s Amer. Partners like Lululemon’s founder may help accelerate sales of workout apparel and Salomon skis, but hefty debt also implies a risky race for private equity-style returns.

Anta deal would be a marathon not a sprint

19 November 2018

Tencent may join the Chinese sportswear company and others in their $5.3 bln approach for Salomon owner Amer. The price, plus initial hits to the margin and dividend, worry shareholders. And yet if Anta could replicate what it did with Fila, the acquisition might pay off in time.

Casino M&A regulatory pushback worth the gamble

8 November 2018

More trouble at Wynn could make it a takeover target. MGM may place its chips on Caesars. Watchdogs take a hard line on casino deals. But with legalized sports betting and a drop in table gambling challenging the Las Vegas Strip, bulking up may be the safest way to beat the odds.

The Dolans are better at spinoffs than coaching

9 October 2018

The family behind $7 bln Madison Square Garden is separating yet another business from its empire. This time, it’s cleaving off the NY Knicks and Rangers from the Rockettes. The sports teams may win no trophies, but the deal could bag up to a 33 pct bonus for shareholders.

Chinese $5 bln winter sports bid is hard to beat

11 September 2018

Fujian-based Anta has approached Finnish ski-wear maker Amer. The offer values the group at a hefty 17 times EBITDA. Anta’s need to fend off U.S. peers in its home turf suggests it will pay more than any rival. Still, the target’s share price suggests investors aren’t convinced.

Nike puts politically divisive spring in its step

4 September 2018

The U.S. brand is putting Colin Kaepernick, the first NFL player to kneel for the national anthem, in its revived “Just Do It” ads. Airlines, sports stores and pizza chains have wrestled with partisan issues. In the commoditized sneaker trade, it’s a risk worth taking.

Only trophy hunters would bid $3 bln for Chelsea

29 August 2018

That’s what Roman Abramovich wants for the barely-profitable London soccer club, the Times says. But Chelsea’s dependence on selling players and the need to rebuild its stadium makes it hard for a new owner to earn a return. Any buyer would have to put glory ahead of money.

Kroenke’s Arsenal buyout is a game of two halves

7 August 2018

The U.S. mogul is buying out shareholders of the London soccer club, with the help of a $721 mln Deutsche Bank loan. By borrowing the funds himself, Kroenke avoids burdening the underperforming team’s finances. But once he has control, he may still leverage it up to pay dividends.

World Cup win partially vindicates transfer market

16 July 2018

The French players who lifted the trophy had the highest value of any team in the soccer jamboree. Other expensive stars fell short, and hard-to-quantify factors played a big role, as finalists Croatia showed. In a hyper-financial sport, though, prices offer a guide to success.

Hadas: World Cup reveals competitive market secret

11 July 2018

The intense rivalry of the soccer championship is built on a cooperative foundation of shared rules and desires. Markets for products display similar superficial fights and deep common roots. Like sport, business competition also tends to become lopsided without careful controls.