Home Business News European football club shares soared following the Super League announcement

European football club shares soared following the Super League announcement


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© Reuters. Overview of the Manchester United logo before the Europa League final

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By Giancarlo Navach and Danilo Masoni

MILAN (Reuters) – Shares of British Italian football club Juventus and Manchester United soared on Monday after they and 10 other top European clubs announced the creation of a Cup Super League declaration.

Juventus’ share price rose as much as 10% as shareholders welcomed the move to create a rival to the UEFA Champions League, Europe’s most prestigious club tournament, and spark a fierce battle over revenue the lucrative sport of this.

Shares of UK Manchester United rose 5% at one point in thin pre-market trading before gaining ground. United’s primary listing was on the New York Stock Exchange that began trading after that.

The announcement of the Super League on Sunday has been condemned by football regulators across Europe and political leaders including the French president and the British prime minister.

Like United, Premier League clubs Liverpool, Manchester City, Chelsea, Arsenal and Tottenham Hotspur have signed up to the scheme.

From Spain, Barcelona, ​​Real Madrid and Atletico Madrid are participating. AC Milan and Inter Milan form a trio from Italy along with Juventus.

Under the proposal, the Super League says it aims to have 15 founding members and a tournament of 20 teams with five other clubs eligible each season.

Those 15 clubs will be secured a spot – possibly increasing club revenue but critics say the move is just for money and undermines the sport’s integrity.

Intesa Sanpaolo (OTC 🙂 analysts estimate that a Super League will earn more TV rights than the roughly 2 billion euros ($ 2.4 billion) that the Champions League earns each year during seasons. The 2018-21 tournament will be divided by only 20 clubs.

“Ticket sales, sponsorship and sales can also benefit, considering the quality of the matches and the large audience of these clubs,” said analysts at the Italian bank.

The breakaway launch sparked a wave of protest. The football authorities have said participating clubs could be banned from domestic tournaments and increased the likelihood that players would be suspended from playing for their country on the international stage.

Some analysts think the announcement could prove a conspiracy by major clubs to make more revenue from existing club-level leagues in Europe.

“Whether it is the Super League or not, the signals are that the big clubs want to ‘renegotiate’ with UEFA over the proceeds, so it was definitely something to stir the water. .. “, said Angelo Meda, head of equity at Banor SIM in Milan.

“I suspect that they have moved like this and will give in, something will be granted.”

Shares of Juventus, like other listed soccer clubs, tend to be volatile, last up 8.5% at 1000 GMT.

Stocks in football clubs Ajax, Olympique Lyon AS Roma

(1 dollar = 0.8317 euros)

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