Football is one of the most popular sports worldwide, and has won the hearts of millions. The game brings together people from different walks of life, impacting not only the emotions and hearts of fans but also the stock prices of global companies.
On the eve of the Olymp Trade Football Festival, let’s discuss five cases when football celebrities influenced the stock prices of famous brands.
- Cristiano Ronaldo and Coca-Cola
- Ronaldo boosting Juventus
- A drop in EA shares due to Juventus
- Lionel Messi and PSG crypto
- David Beckham and Cellular Goods
- Football as a force driving the markets
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Explanations and definitions of terms.
Cristiano Ronaldo and Coca-Cola
Stock prices react not only to major international events but also to the actions or statements of a single person of significance. Celebrities with big followings and the power of persuasion have repeatedly brought down or inflated the value of company stock. Perhaps the greatest stories of this kind are related to the famous Portuguese footballer, Cristiano Ronaldo.
On June 15, 2021, during a press conference before the Euro 2020 group stage match Cristiano Ronaldo removed bottles of Coca-Cola from the table and replaced them with plain water. With this one action, the football star sent Coca-Cola shares into a 1.6% dip, costing the corporation $4 billion in capitalization.
Despite how widespread this event was in the media, The Coca-Cola Company insisted that Ronaldo did not influence its capitalization. According to the beverage giant, the fall in its share value was expected, following a dividend payout.
Ronaldo boosting Juventus
Cristiano Ronaldo can be called not only a high-class football player but also a stock market busker. He has repeatedly influenced multiple company stocks across various sectors of the economy. Including, of course, the stock value of football companies.
In July 2018, news broke that Juventus Football Club was planning to sign Ronaldo from Real Madrid. Against the backdrop of this news, Juventus shares rose by 19% within two days, eventually reaching almost 40%. The so-called “Ronaldo Effect” caused a stir among millions of fans and, accordingly, investors.
The news about the most famous footballer of our time joining Juventus caused an increased demand for the club’s merch. Within one day, 520,000 Ronaldo t-shirts were sold, bringing the club approximately $62.4 million, and its Twitter account gained over a million new followers overnight.
Investing in Ronaldo was a profitable decision for Italian football club Juventus. With the star’s name, Juventus sold troves of merchandise and significantly increased its revenue. More importantly, thanks to Ronaldo’s reputation on the field, Juventus’ chances of winning future matches increased and the club acquired a million new fans.
A drop in EA shares due to Juventus
The Ronaldo Effect even extends to the world of games. In July 2020, Juventus announced an exclusive partnership with Konami, a game development company and publisher of football simulator eFootball. Juventas and Konami signed a long-term contract that allows the team’s logo, realistic player models and the Allianz Stadium to be featured in the game.
Due to this agreement, Konami’s rival Electronic Arts (EA) lost its license to use Juventus’ name and image in the game FIFA 20. This led to EA shares collapsing by 3.28%, from $92.3 to $88.5, and its capitalization shed €732 million.
The reason for this was due to a misunderstanding on EA shareholders’ part. Many thought that with the loss of EA’s rights to use the Juventus brand, Ronaldo would also disappear from the game, which would cause his millions of fans to stop playing the FIFA game.
In the end, only the name of the team and its sports uniform were changed. The share price of Electronic Arts subsequently corrected.
For Olymp Trade’s users, share price fluctuations are never a problem. Even beginner traders can profit from both rising and falling prices. The Olymp Trade Football Festival is a great opportunity to sharpen your trading skills and get into the spirit of big football alongside the world championship. Join in and become a champion on the field!
Lionel Messi and PSG crypto
In August 2021, Argentinian star striker Lionel Messi moved to Paris Saint-Germain (PSG). This event caused the little-known cryptocurrency, Paris Saint-Germain Fan Token(PSG Fan Tokens), to skyrocket in price. This price increase was mainly influenced by the news that the crypto made up part of the $30 million acquisition contract for Messi.
Within days of the rumors, PSG Fan Token’s price went up from $26 to $55. Released in January 2020, the utility token allows fans to have a say in minor matters of the club, and provides them with gifts, bonuses and exclusive offers.
Thus, one of the most important events in the world of football allowed early crypto investors of PSG Fan Token to profit.
David Beckham and Cellular Goods
The British company Cellular Goods held an IPO in February 2021 with the aim to raise £8 million. The company produces laboratory-grade skincare products for athletes.
Retired football star David Beckham is one of the faces of the company as well as one of its investors, holding a 5% stake. The support of one of the world’s most well-known football stars in the skincare company attracted a huge amount of investment for the stock’s debut on the financial markets. The initial share price was set at £0.05 ($0.07), but soon rose to £0.23, up 355%. As of now, the share price has risen by a total of 470%.
During the IPO, Cellular Goods managed to raise £25 million pounds, as demand for shares exceeded the supply by 13 times. Beckham’s participation in the IPO has become the basis for success in attracting attention from investors, the media and the public.
Football as a force driving the markets
Prive behavior directly depends on the mood of investors. Considering how popular football is, it only makes sense that it greatly impacts the global financial market and the investors within it. Match results are so influential that they can even impact stock prices of the winning and losing countries. We recommend familiarizing yourself with fundamental analysis concepts to better navigate the news stream and determine how future events may affect stock prices.
Stay up-to-date with the latest news from the world of stocks with Olymp Trade. Gain new knowledge, trade and celebrate this year’s greatest football event with Olymp Trade’s Football Festival! Our ambassador — the great football player Ronaldinho — reflects our philosophy of striving to reach your dreams. In connection with the world’s biggest football event, we are holding the Ronaldinho Trading Cup as part of our Football Festival, open for anyone to take part. Do you love football and want to be part of something big? Join Olymp Trade and win in the world of finance like the stars on the football field.
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Risk warning: The contents of this article do not constitute investment advice, and you bear sole responsibility for your trading activity and/or trading results.
Initial public offering. A process in which a private company becomes a public corporation by offering its shares on the stock market.