Sports

Qatar is better off with World Cup than without it

12 Jun 2014

The controversy over its hosting of the 2022 soccer jamboree has stained the emirate’s reputation. Yet without the tournament, Qatar has little apart from gas to distinguish itself from more attractive Gulf neighbours. Losing the World Cup would be worse than keeping it.

Rob Cox: Investors cheer for Brazil World Cup rout

10 Jun 2014

Each dip in Dilma Rousseff’s poll numbers bumps the Bovespa. Markets are hoping her experimental economic policies will come to an end at the October ballot. With labor tight and millions lifted from poverty, however, it will take crushing defeat on the pitch for that to happen.

Three ways for FIFA to score on governance

6 Jun 2014

Ugly allegations of corruption have caught soccer’s governing body offside. FIFA’s setup has improved lately but its congress is unrepresentative, its executive committee is too large, and its president is too powerful. The beautiful game should shoot for a hat-trick of reforms.

Jack Ma soccer buy does Alibaba investors a favour

6 Jun 2014

The internet giant’s founder hatched a $192 mln investment in China’s most popular team during a drinking session. Though the deal is immaterial to Alibaba’s value, it shows how the group works. It’s a reminder that investors in its IPO will be little more than spectators.

Clippers may actually be Ballmer’s least-bad deal

30 May 2014

That isn’t saying much given the ex-CEO’s record at Microsoft. But TV revenue means sports teams are no longer money pits. Even including the ego premium in the $2 bln price tag, buying the Los Angeles basketball squad could work out better than aQuantive, Skype or Nokia.

Spanish soccer needs a financial bootcamp

30 May 2014

Spain hold the World Cup and Real Madrid are European champions. Yet the domestic game is less healthy, with many clubs deep in debt. The state is enforcing better financial management. Attracting foreign investment, and sharing TV money more evenly, could help teams shape up.

Market forces should be slam dunk for NBA fiasco

30 Apr 2014

Real-estate mogul Donald Sterling is under pressure to sell his Los Angeles Clippers after receiving a lifetime ban for making racist remarks. Fellow owners may be reluctant to put the matter to a ballot, for fear of setting a risky precedent. Capitalism will spare them.

Manchester United’s crisis has silver lining

22 Apr 2014

The English soccer club fired David Moyes, hapless successor to star manager Alex Ferguson, after one awful season. But the drama has an upside. Turmoil at the top of the game sustains fan and sponsor interest. As one of football’s biggest brands, United should benefit.

Review: Moneyball flaws can be found in finance

28 Mar 2014

“The Sabermetric Revolution” debunks some of the numerical analysis craze sweeping baseball. Two Smith College professors expose how many of the stats rely on poor measurement, dodgy theory and small data sets. Even good metrics quickly get arbitraged. Just like on Wall Street.

From soccer pitch, lessons on Chinese tycoon risks

14 Feb 2014

As trophy hunters flash more cash overseas, the sale of 12 pct of Birmingham FC by a Hong Kong tycoon to an obscure Chinese entity offers a cautionary tale. Having a big personality as a big shareholder is risky, but Chinese buyers bring extra anxieties.

Allianz hits back of the net with FC Bayern deal

13 Feb 2014

Germany’s largest insurer is paying 110 mln euros for an 8.3 pct stake in the country’s most successful soccer club. Allianz has got a slightly cheaper deal than Audi’s investment in the team in 2010. And its clout as a giant institutional investor may spur improved governance.

Welcome to Sochi, Putin’s Potemkin village

7 Feb 2014

The Russian president made the Winter Olympics his personal project and wanted it to be a symbol of Russia’s power. But the games will mostly throw light on the economy’s deep problems - and the autocratic president’s unwillingness, or inability, to address them.

John Malone’s drive for F1 shows value of sport

4 Feb 2014

The cable tycoon offered to buy a stake in Formula One last year. His recent focus has been on distribution, not programming. But the taste for motor racing highlights live sport’s must-have status in content. If he wants it, he can expect an auction and a $10 bln-plus valuation.

KKR needs lucky goals to win in German soccer

3 Feb 2014

The buyout group is investing 61 mln euros in Berlin-based team Hertha BSC. The club is struggling financially and mediocre on the pitch. A thriving Bundesliga tournament and a booming Berlin suggests potential. But turning Hertha round looks a long shot for private equity.

Germany will lift the soccer World Cup

20 Dec 2013

The football-mad Brazilian hosts have won five times, more than any other country. But on Breakingviews’ analysis of the hard numbers – the players’ transfer value, population, participation and public engagement – Teutonic power will squash the romantic dream of a sixth win.

Sochi showcases sub-zero Russian investment appeal

19 Dec 2013

The most expensive Olympics in the games’ history will be a window for Russia’s corruption and economic degradation. Investors will be reminded that Vladimir Putin is not a man to do business with.

Fund managers could learn from hometown Red Sox

30 Oct 2013

The team is a win away from being baseball’s champs. Its success hinges on the disposal of concentrated long-term bets in favor of liquidity, early-stage backing and steadier assets. Such diversification is a good reminder for the Boston-based investment industry and beyond.

BSkyB ably defends its turf against BT incursion

17 Oct 2013

The broadcaster’s first results since the telco moved into live sport showed strong sales and subscriber growth. BSkyB shares hit a 12-year high on relief it can handle this threat. Yet there are further technological and cost challenges ahead. The stock looks fully priced.

Japan’s Olympic boost will be mostly psychological

9 Sep 2013

Choosing Tokyo to host the 2020 Games has given the country a lift. But expectations that an Olympian investment spree will end deflation are as misplaced as fears that it will trigger a debt crisis. A feel-good effect on consumption is probably the best Japan can hope for.

Bale-in at Real Madrid won’t lead to bailout

2 Sep 2013

The Spanish soccer club is splashing out 100 mln euros on Welsh goal-scoring star Gareth Bale. The record-breaking fee stretches the spirit of financial fair play rules recently adopted by the sport. But Real Madrid’s wealth leaves the deal within the letter of the law.