As England prepares for its semi-final football match against Argentina, new research from Charles Stanley Direct, part of Raymond James, reveals that almost a third (30%) of DIY investors are looking to capitalise on the investment opportunity from the World Cup.
With what has been a nail-biting tournament so far, the quarter-final is expected to generate a £500m sales boost for UK economy.* But it’s not just fans that will have eyes glued to screens. Investing in sports, such as football, has increasingly garnered interest from retail investors and become a major institutional asset class, driven by such things as surging media rights, stadium real estate, and private equity.
As nations continue to cheer on their sports teams as the World Cup goes on, research from Charles Stanley Direct found:
- 31% of DIY investors invest in sports or sports clubs they are a personal fan of
- This increases for Gen Z and Millennials alike, with 50% and 44% respectively confirming this
- 31% invest in sport events indirectly through infrastructure / retail / media
- 27% of investors say they invest in sports directly (i.e holding sports stocks)
- A quarter (24%) of investors say part of their portfolio is weighted in sport as an asset class, whether it’s football, tennis, or Formula 1
- 27% say they follow sports or league tables more because of the investments they hold than being a fan
While many look to capitalise on the investment opportunities, there are those who are more wary of the asset class.
- 52% of DIY investors believe investing in sport is too risky
- 39% would rather buy sport collectibles and merchandise than invest in football clubs directly
- 27% say they play Fantasy Football to win money, using an alternative way to capitalise on sports
“With the semi-final looming, England fans will be rooting for the team to claim another victory. Football is big business, and the World Cup even more so with so much emotional investment from fans in reaching the final. But investors are clearly looking for more as sports investment has increasingly gained popularity as an asset class. Whether it’s investing in local sports clubs or indirectly through infrastructure, fans and investors alike will be looking at how the team and portfolios can bring it home to win!”
Rob Morgan, Chief Investment Analyst at Charles Stanley Direct, part of Raymond James
