The stock market and soccer
In the financial markets there is a popular adage that says "buy on the rumor, sell on the news". This refers to the fact that rumors can have a direct effect on the price of an asset and that once the news comes out, the effect can be the opposite.
In this case, let's quote an exercise that happened a few days ago. A sector of investors, mainly with a short-term profile, could have obtained good or bad results. It all depended on their knowledge of the "timingThe "right thing to do" when making an investment decision.
Without wanting to create a controversy for lovers of different sports; we could objectively mention that the most popular sport in the world and with the largest number of fans is soccer. In the last few days, the news of the creation of a new soccer tournament organized by twelve of the most important teams in the world, has filled the main news pages around the world.
The impact has been such that on Sunday night, the main media outlets such as Bloomberg, Reuters, Yahoo finance, among others, began to publish articles related to this issue.
Important points
The reality is that for several years now, soccer has ceased to be just a sport and has become one of the most economically attractive businesses. For context, according to data obtained from a report conducted by Deloitte earlier this year, the twenty largest soccer clubs in the world generated a total of €8.2 billion for the 2019/2020 season. This figure represents a 12% less than the previous year; which like many other sectors of the economy, has been affected by COVID-19. The decrease in revenues has been mainly reflected in broadcast revenues and the resumption of closed match days; due to social distancing measures.
The projections for the fiscal year ending this year are not the best. Therefore, it is estimated that the season will end with losses of more than 2,000 million euros. The crisis caused by the coronavirus has greatly affected this business, which has seen the suspension of some national and international competitions for the first time in almost 100 years.
Faced with this financially adverse scenario, the presidents of twelve of the most important clubs mentioned that they had decided to create a new "....European Super League". League with which they would seek to obtain better income and thus be able to offer fans a tournament in which the clashes between the most important clubs in the world are something constant. In addition to not having to wait until the final stages of each year's competitions. Faced with this news, many other clubs, the main sports federations in the world (FIFA, UEFA) and countless renowned soccer players began to show their disagreement with this idea. The popular discontent of fans in different countries has been general. Fans think that in this way the sport would be completely losing its main values, which are the achievement of results through sporting merit alone.
