After the announcement of the creation of a Super League, the price of the shares of the clubs concerned soared on the stock market.
The stock prices of Juventus Turin and Manchester United soared Monday April 19 after the announcement of the creation of a Super League, a lucrative private competition founded by twelve dissident clubs and doomed to supplant the Champions League.
The price of Juventus Turin, listed on the Milan Stock Exchange, rose 17.4% to 0.91 euros at the close of trade. Listed on the New York Stock Exchange, the title of Manchester United soared 9.46% to 17.70 dollars. The other dissident clubs are not listed on the stock exchange.
After decades of shaking the specter of a schism, the top leaders of the continent, Real Madrid, Liverpool or Manchester United in the lead, have taken the plunge by creating a private company, called “Super League”, almost closed and comparable to the northern championships – American basketball (NBA) or American football (NFL). In return for their commitment, “the founding clubs will receive a one-off payment of around 3.5 billion euros intended solely for infrastructure investments and to offset the impact of the Covid-19 crisis”, say the organizers.
“The financial incentive for these clubs is obvious, with a multi-billion dollar envelope at the heart of the project”, comments Markets.com chief analyst Neil Wilson in a note. Furthermore, “Ticket sales, sponsors and merchandise should also benefit, given the large audience of these clubs.”, thinks, Alberto Francese, head of research in brokerage for companies for the Italian bank Intesa Sanpaolo.
But he tempers by explaining that “UEFA and FIFA react very vehemently” with the potential exclusion of any dissident club from national and international competitions, as well as the ban for players to play in the national team.
The majority of Super League revenue is expected to come from TV rights, as is current funding for the Champions League. But for the moment no distribution agreement has been mentioned, nor any date for a possible future call for tenders. The US bank JPMorgan has indicated that it will finance the project, without giving further details.