Let The Games Begin – Football Vs. Stocks

One year later than expected, the UEFA Euro 2020(1) Championship has finally kicked off. The beginning of the traditional tournament dates back to 1960, and it has been held every four years since then. Many fans consider it to be THE sports event of the year. After lengthy lockdowns and stay-at-home measures, football stadiums will finally be filled with their natural inhabitants – football fans. 

white and orange soccer ball on green grass field

Unsplash

It is no secret that the football industry is a money-making machine due to all the business ventures it runs on the side. Apart from selling match tickets, the clubs are making money in segments ranging from broadcasting and sponsorship rights, retailing, merchandising, apparel and product licensing. At the same time the big sporting events also raise expectations and investor appetites for football-related stocks.

Scoring in the stock market 

One of the clubs that is a master of all these activities and a top pick of investors is Borussia Dortmund. “The Black and Yellows” do not need a special introduction. Founded in 1909, the club has set major milestones over its “career” playing its home games in the 80,000-capacity Westphalia stadium (officially called Signal Iduna Park). 

As in a football game, in the stock market timing is everything! To make the right moves and score in the stock market you should be aware of the strong seasonal phases of football stocks in the course of the year. 

Borussia Dortmund stock typically generates strong gains in the summer months of the year. A detailed analysis and the period of seasonal strength can be seen in the seasonal chart below.

Before we dive deeper it should be noted that the seasonal chart shows the average price pattern of the stock calculated over the past several years. The horizontal axis shows the time of the year and the vertical axis shows the percentage changes in the value of the stock (indexed to 100). 

Seasonal pattern of Borussia Dortmund over the past 15 years

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Mike Nolan 2 months ago Member's comment

How can the UEFA Euro be the game of the year, if it only happens once every four years ;-)