How You Can Buy or Sell Stock of Any Top European Football Club - From Anywhere in the World
I can imagine what goes on in your mind, if you are a football fan and that rich... You would have thought to buy over your favourite club in Europe. Well, if you're just a passionate supporter with few dollars to invest and you are wondering how possible
Well, if you've been curious about how to invest in football and you've asked yourself, "Can you buy shares in football teams?", you're in the right place. The answer is yes. You can learn how to invest in football quite easily. However, there is no separate football stock market.
What are football club stocks? How to invest in football?
What exactly does it mean to invest in football club stocks and how do you do it? It can mean any of the following:
1. Investing in a football club on the stock market like Juventus Football Club SpA stock and other listed football clubs
2. Investing in an index of Football clubs like the Stoxx Europe Football Index (though this Index isn't available anymore)
3. Investing in a company that is related to the football industry, but not necessarily a football club.
Football team stocks can be bought on traditional stock exchanges. For example, Manchester United is publicly traded on the New York Stock Exchange and shares in Manchester United stock can be purchased in minutes.
Football stocks on the stock exchange
While you can't buy shares in football players, you can buy football team stocks. When people hear about trading football stocks, they may ask, "Is a football stock real?". Yes, you can trade real shares on listed football clubs with real money. However, there is no fantasy football stock market, except for a fantasy football stock trading simulator that does have some educational value.
In 1983, English club Tottenham Hotspur became the first football team to list itself on the stock market. Several teams followed, and in 1991 the first stock market index of football teams was created: Stoxx Europe Football.
If we were interested in focusing on listed football teams in 2020, this index is where we would have first looked, as it encompassed a large number of them. According to the Stoxx website, the index's free-float adjusted market capitalisation was $802.762 million on 22 July 2020. However, Stoxx discontinued their calculation and dissemination of the STOXX Europe Football Index on August 28th, 2020 and hasn't replaced it.
Are Football Stocks Different from Traditional Stocks?
Prices of football team stocks are not necessarily governed by the economic situation of a country or by international geopolitical events. The best Football trading strategies also must take this into account.
Some of the factors that influence the price of football clubs are as follows:
Team results. If a team performs well on the pitch, the market is likely to respond positively. Alternatively, if a team does not perform well their share price will be negatively impacted.
For example, in March 2019, the share price of Italian club Juventus shot up 16% after, against all odds, they beat Atletico Madrid and secured a spot in the quarter-finals of that season's Champions League. A month later, the team was knocked out of the competition by Dutch side Ajax and subsequently suffered its largest decrease in share price since 2013.
Titles. Much like winning an important knock-out game in a competition can boost stock prices, a team going that step further and winning a title is another incentive to buyers in the market.
Transfers. The arrival, or departure, of players and club managers can also cause volatility in the stock market.
For example, the purchase of Cristiano Ronaldo by Juventus in 2018 caused their share price to appreciate by around 10% over several days.
Furthermore, in December 2018, Manchester United's share price rose 6% following the firing of Jose Mourinho.
Match Rights. The money paid by broadcasters for the right to televise football games is a very important source of funding for modern football clubs. Announcements of new deals tend to have a positive impact on share prices.
Financial Management. The way a club's board manages their finances also has an impact on the share price
How can you buy or sell A Top European Club shares?
So, let's look at how to invest in football shares by buying BVB ( Borussia Dortmund) stock. You can invest in BVB shares directly with Admirals using the Invest.MT5 account, which also gives you access to over 350 other Football clubs shares and around 200 Exchange Traded Funds (ETFs).
To buy or sell BVB shares with Admirals follow these steps:
1. Open either a demo or live account with Admirals
2. Download the MetaTrader 5 platform to your computer
3. Log in to your MetaTrader trading account
4. Once logged in to the platform, head to the "Market Watch" panel on the left of the screen. If the trading symbol you are looking for is not displayed, you can search for it at the bottom of the panel
5. Once your desired symbol is displayed in the Market Watch, you can right-click on it and press "Chart Window" to open up its price chart
6. Now click "New Order" at the top of the screen and a pop-up window will appear. Here you can choose your desired volume, stop-loss and take-profit, before either buying or selling
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