2021 European Championship: will a soccer investment pay off?
Published on 16.06.2021 CEST
Major events such as the soccer European Championship can have a sizable impact on the economy and the stock exchange. There’s even talk of symbiosis: soccer needs the economy, the economy needs soccer. So the question is, are there individual stocks that tend to profit from the European Championship?
Adidas and other sponsors
First of all, it’s worth noting that any companies directly or indirectly connected with soccer can benefit greatly from major sporting events such as the Euros – that includes brewers, sporting-goods manufacturers or sponsors.
Sporting goods manufacturers such as Nike or Adidas have particularly large economic clout. This even extends to the fact that different factors relating to the Euros can impact sponsors’ share prices. This is because UEFA only allows advertising from licensed companies. This means that advertising at major events like the Euros has great significance and sponsors aren’t lost in the crowd.
Do brewers benefit as well?
Soccer and beer are almost inextricably linked. This means major soccer tournaments can affect the share price of international beer brands. This goes hand-in-hand with rising sales and, as a result, rising profit. If shares meet with growing interest and demand, that price may rise as well.
Conclusion: soccer and the economy – a symbiosis
To sum it all up, a sporting event such as the European Championship can definitely impact shares. The companies that particularly profit are the ones that have direct or indirect contact with soccer.
This results in attractive investment opportunities for interested investors. Our product ideas from the most important industries surrounding the soccer championship could look like this:
Autocallable Barrier Reverse Convertible
Published on 16.06.2021 CEST