FIFA's failed World Cup sale attempt
Gianni Infantino's plan to sell part of the World Cup to private investors has failed, raising questions about the financial viability of football investments. Despite FIFA's attempts, the football industry remains a significant economic force with untapped potential. However, direct investment in football clubs like 1860 Munich or Borussia Dortmund is fraught with risk, particularly with the financial stakes and uncertain returns.
The financial risks of investing directly in football clubs are evident, as traditional clubs often struggle with profitability and long-term growth. This is further complicated by the dual objective of many football clubs: achieving sporting success and maximizing shareholder value. These conflicting goals often lead to suboptimal financial performance.
Indirect investment routes in football
Investors are advised to explore indirect investments in football through larger entities rather than individual clubs. CVC, an investment company with a stake in sports, has seen its stock rise over 40% since March. Analysts project further gains, though the share is still below its November 2024 high. CVC's involvement in sports offers a detour for those interested in the football market.
The TKO Group, which acquired the global sports agency IMG in 2025, presents another alternative. IMG, a major rights marketer, has driven TKO's stock up over 70% in three years, with projections for further gains.
Performance and challenges for football stocks
The Pelé Index, which tracks listed football clubs globally, has underperformed the broader stock market since 1998. Clubs like Ajax Amsterdam and Juventus Turin have fared poorly, highlighting the challenges for direct investments. The only standout is Manchester United, which has outperformed other traditional clubs with a 40% stock increase over five years.
Despite the risks, the football industry continues to attract investors through indirect channels. The recent performance of CVC and TKO suggests there are viable investment opportunities beyond individual clubs, though the path is still uncertain. The industry's potential remains largely untapped, requiring careful and strategic investment approaches.