Soccer Clubs and Their Performance in the Stockmarket - Case Study Example

Billions of dollars by the way of television rights got into pumped into soccer. This brought dozens of investors from all over the world looking for their share of the pie to the doors of the European soccer clubs. The scamper for the soccer clubs was coincided by a spate of stock listing for raising more money. The trend for stock listing, amongst soccer club, that reached its zenith in the mid-90s has now subsided. The performance of the soccer club is directly dependant upon the performance of the club on the field.

The stakeholders buy expensive players by paying sky-high salaries to hire star players. A significant part of the profits goes into hiring and hiring the players. The wage inflation makes most of the clubs run into financial difficulties despite heavy investments. Nevertheless the scamper for owning the clubs goes on unabated amongst the billionaires from around the world. Soccer clubs, as of now, are an industry that is intended to serve the interests of its stakeholders, the investors, through maximization of returns.

Soccer, also called football or association football, the most popular past time on earth (Luxbacher, 2004), is an integral part of society (FIFA). The impact of soccer is carried much beyond the stadiums into the pubs, the temples, the living rooms, and the parliaments (Lalas, 2007). Soccer has been shown to cause heart attacks, homicides, suicides and riots. Millions of people around the world are nearly fanatical about soccer as there is conclusive psychological evidence linking soccer results and the mood of the people (Edmans, Garcia, and Norli, 2006).

Commercially speaking, soccer is an industry in which large corporations pump in enormous amounts. The television rights, soccer rights and players’ salaries are indeed exorbitant. Soccer clubs have introduced marketing strategies and advertising strategies.