Does listing on the stock market really benefit football clubs?

By Andrea Caropreso

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In recent decades, several football clubs have deemed it appropriate to list themselves on the stock exchange. A choice in line with considering the club no longer just as a sports association but as a real company. In Italy, Lazio, Roma and Juventus did so, although the Giallorossi in 2022 proceeded with delisting, that is, the process by which a company exits the listing system. Precisely because of this, it is appropriate to raise a question: does being listed on the stock exchange bring more advantages or disadvantages?

The data

The decision of a football club to go public represents a strategic opportunity that goes far beyond simply raising capital. First of all, access to financial markets makes it possible to mobilize significant resources to support ambitious infrastructural projects (such as the construction or upgrading of stadiums) as well as to strengthen equity, thanks to operations such as capital increases or the issuance of new shares.

A particularly relevant case in Italy is Juventus. More than once, Exor, owned by the Agnelli family and represented by John Elkann, has carried out capital increases essential for the club’s finances. However, being listed on the stock exchange also entails certain obligations toward Covisoc, the supervisory body of the Italian financial market.

In this sense, transparency requirements represent a constraint that listed companies must comply with. This is why every Juventus transfer market operation is reported in detail on the official website, including accessory costs (the so-called commissions), information that other clubs are not obliged to disclose.

For Juventus, listing has enabled significant economies of scale. A study by the Boston Consulting Group highlighted this by analyzing the Total Shareholder Return (TSR). Among Italian listed companies, Juventus achieved a TSR of 36%, indicating its ability to create substantial economic value for those who invested in the club. This figure demonstrates the real advantages of being listed, especially when the club’s governance is well managed.

The disadvantages of listing on the stock exchange

As in many aspects of life, there is also a downside. Some parameters, if analyzed, lead to the conclusion that being listed involves disadvantages. First of all, the very nature of the football business, characterized by sporting fluctuations, unpredictability and emotional dynamics, makes the stock particularly volatile. Results on the pitch — such as an unexpected qualification to the Champions League or an early elimination — can immediately impact the stock price, creating instability and financial management challenges.

However, it should be noted that, as several studies show, sporting results do not always cause stock crashes. Taking Juventus again as an example, some of the sharpest declines in recent years came after the mass resignation of the board in 2022 and after the first ruling in the fictitious capital gains case in 2023. Events not directly linked to sporting results, yet they significantly affected the club’s stock.

Moreover, for many investors, shares of a football club do not represent a rational, profit-oriented investment. Often, they are purchases tied to sentimental or strategic-asset motivations rather than financial ones. Several studies show that many club listings are marked by poor profitability and volatility, with returns lower than those of “traditional” stocks.

The Juventus case

The Bianconeri landed on the Italian Stock Exchange in 2001 with a market capitalization of around €260 million. Since then, the stock has experienced ups and downs, influenced by sporting and corporate events. On the one hand, the arrival of Cristiano Ronaldo in 2018 is a clear example of how a highly mediatic event can boost the stock (which rose from €0.60 to €1.60). On the other hand, it also shows how volatile the market can be.

The financial issues after Covid and Ronaldo’s high salary strained Juventus’ accounts. However, the listing remains strongly tied to the financial strength of the main shareholder, Exor. The latter holds about 64% of the capital and is ready to support the club with capital increases when necessary.

Compared to the past, today Juventus’ market capitalization is significantly lower than the peaks previously reached. This shows that, although going public provides important tools for raising capital and international visibility, it also exposes the club to continuous volatility and strong correlations between sporting, financial and judicial events.

By Andrea Caropreso