Sports

The Exchange: Soccer gets smart

30 July 2019

It’s summer, which means top teams like Barcelona and Manchester United are brandishing their cheque books in the player-transfer market. But the way soccer clubs choose their stars and fund the purchases is changing. Researcher Sophie Tomlinson and financier Jason Traub explain.

Chinese IPOs get a red card from foreign investors

26 July 2019

Wanda Sports raised $190 mln in a downsized New York listing, following DouYu and other companies that have shelved or valued offers cheaply due to poor demand. The U.S.-China trade war is making buyers wary of mainland issuers, and better returns can be found elsewhere.

Big Ski is a boon for investors, if not for skiers

22 July 2019

Vail Resorts’ $264 mln deal for Peak Resorts brings 17 mostly bunny hills to the operator of some of North America’s sweetest slopes. Like all things ski-related, the price is high. But Vail can justify the 100%-plus premium by jamming skiers into its premier mountains.

China’s Topsports takes eye off e-commerce ball

17 July 2019

Two years after a $6.8 bln buyout of Belle, the shoe retailer has unveiled IPO plans for its athletic-wear chain. A Beijing-backed fitness push should help sustain sales growth. A dependence on Nike and Adidas is a worry, though, as is the lack of emphasis on its online strategy.

Anta outruns short-sellers at surprising pace

9 July 2019

The $18 bln Chinese athletic-gear maker is under attack again, this time from Muddy Waters, which accuses it of fraudulently inflating profit margins. Despite an abundance of doubters, the stock is up a third this year. Resisting scepticism may be a less challenging sport.

U.S. soccer’s unsporting pay is an own goal

8 July 2019

The American women’s team that clinched the World Cup title on Sunday is fighting for equal wages. As with similar battles playing out in the corporate world, arguments about metrics and comparability cloud a simple point: closing the pay gap is good for long-term profit.

Wanda’s Ironman IPO could lose a little weight

4 July 2019

The triathlon-to-soccer arm of tycoon Wang Jianlin’s empire plans a $500 mln U.S. listing. China's legions of fans and the prospect of the 2022 Olympics in Beijing will be a draw. But a share sale eases only some of its debt load; less burdened rivals may beat it to the finish.

India’s bling cricket league reflects rich reality

10 May 2019

All eight teams in the country’s top tier are turning a profit. Shared revenue, salary caps and room to expand combine for a winning pitch. That makes it easier for tycoons like Mukesh Ambani and Saijan Jindal to justify ownership through their flagship conglomerates.

Liverpool beats peers for soccer heroics and ROICs

8 May 2019

Overturning a three-goal deficit against Barcelona in the Champions League is one of English soccer’s biggest triumphs. Jurgen Klopp’s side also bests domestic rivals on returns on invested capital. Savvy player sales are key, but bigger sponsorships would be more sustainable.

Disney sports deal is small fumble in long game

6 May 2019

The Magic Kingdom sold some regional networks to Sinclair for $10.6 bln – much less than what was expected. But Disney completes a necessary task to clear its $71 bln deal for bits of Rupert Murdoch’s Fox. The launch of streaming services, with Fox content, is the greater prize.

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.

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.