Soccer Shares - Listed Clubs Top 5 Countries

Soccer tables

Power concentration at 5 major soccer countries.

In 2012 we here wrote " UEFA organizes 53 countries, but it is remarkable that in the 2007-2012 time-frame all 24 qualifies for semifinals of Champions league were from the top 5 countries."
It was and is our conviction that soccer clubs of major soccer countries possess a tremendous competitive edge, since they "only" have to become substantial in their own leagues, then almost automatically will grow big, since those leagues afford them much more revenue power.
In current football, participating in Champions League has become of essential importance since it not only guarantees much additional money from premiums, market pool and match-day revenue, but regular participation very much stimulates other sources of income, especially from merchandising and sponsoring.
We postulated:
1) Clubs being successful in Champions League over the years have improved their chance to stay on top, since they will become increasingly competitive.
2) Once big clubs from the big countries have established and therefore predominantly qualify for available Champions League spots, it will become more and more difficult for national competitors to catch up on them.
3) Thus for big clubs of smaller soccer countries (such as for example Ajax, Porto, Benfica, Celtic, Glasgow Rangers) it will also become increasingly difficult to compete with their competitors from 5 main soccer countries.
4) And therefore biggest clubs from these dominating soccer countries have best chances to emerge as "big untouchables".
This is why we focus on listed soccer clubs of major soccer countries. And at earliest as they manage to resolve their (partly massive) valuation anomalies against benchmark valuation, also listed clubs from tiny soccer countries will get some better chance to become attractive for investment. However at much higher risk levels.
It is not much noticed that the impressive valuation of Manchester at capital markets of some 2,5 billion Euro is no outlier, since its valuation is supported by both Forbes and KPMG. From their research reports it is also obvious that the massive value accumulation in soccer was over a broad range of clubs but indeed all of them residing in the 5 main soccer countries.
Over Forbes Business of Soccer is a broad and consistent benchmark of the 20 biggest clubs available, which on average have Enterprise Value set by Forbes at 3,63x sales. KPMG at about same (high) levels.
Source Forbes Business of Soccer 2016 and [PDF] : KPMG The European Elite 2016