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  • The Seville Reporters

Where to Score World Cup Profits

The FIFA World Cup is the fourth most valuable sporting event behind The Super Bowl, The Summer Olympics, and the Winter Olympics. Athletic companies, fast food chains, beer companies, and television companies spends millions of dollars to dress teams, feed spectators, and broadcast games. The hope is that all of the spending will result in bigger profits in the future. During World Cup 2018 we looked around the market for companies that we feel will be impacted by The World Cup, and here is what we found.

Adidas: Adidas provides uniforms or kits for 12 of the World Cup teams and the company provides the official ball for the World Cup. Germany, Spain, Colombia, Argentina, Mexico, Egypt, Sweden, Japan, and Russia are a few of the teams that will be sporting the 3 Stripes. Star power for Adidas is provided by Lionel Messi, who is playing in The World Cup and retired English soccer great David Beckham. Adidas has been closing the gap on Nike recently. Can this World Cup help them close the gap even more?

Colombia's Yerry Mina

Nike: Anyone who has followed Nike throughout the years knows the company has struggled when it comes to soccer. We've seen Nike soccer campaigns come and go without really having an impact on the company, hopefully this World Cup will be a turning point for Nike Soccer. Nike dresses 10 teams in tournament which include Brazil, England, France, Australia, Saudi Arabia, Croatia, Nigeria, Poland, Portugal and South Korea. Nigeria's jersey has been a huge success for Nike gaining 3 million preorders and ultimately selling out. Nike's star power include Portugal's Cristiano Ronaldo and Brazil's Neymar, two of the largest figures in the sport.

Dick's Sporting Goods and Footlocker: Dick's and Foot Locker are the retailers helping Adidas and Nike get their merch to soccer fans throughout the U.S. The stocks of Dick's and Foot Locker have been performing better lately than they had in the past few years. It appears the companies have adapted to consumer shopping habits. The major issue for Dick's is the company is a U.S. company and the United States National Soccer Team didn't qualify for this World Cup. Foot Locker however operates stores in the U.S., Canada, Europe, and Asia so the company should be able to see some World Cup goodwill trickle down.

Portugal's Cristiano Ronaldo in a Nike Kit

21st Century Fox: Fox gets the honor of broadcasting The World Cup. A typical soccer game goes for two 45 minutes halves without commercials. So it is unlike the Super Bowl where the broadcaster collects millions of dollars for 30 second commercials during team timeouts and TV timeouts. The major problem that Fox has for this World Cup is that the U.S. Soccer Team did not quality for the World Cup. We will have too wait and see how many Americans watched the World Cup without a national team to root for. On the more optimistic side, Ronaldo, Messi, and Neymar provide a lot of start power. Hopefully it's enough to get Americans to tune in.

Twitter: Fox Sports will tweet every World Cup goal on its twitter feed. Because many of the games are taking place during most American's working hours Twitter is going to be an American soccer fans best friend during the World Cup. Can this move bring new eyes to Twitter; or will it be the same eyes just using the app more frequently? Either way the World Cup should have an impact on Twitter.

McDonalds: McDonalds operates 34,000 restaurants in 119 countries. For the one million soccer fans expected to visit Russia from around the world for The World Cup, seeing the golden arches can make Russia feel a little more like home. No matter where a soccer fan hails from or what language they speak, they will know how to order a burger, fries, and drink. McDonald's is also an official World Cup Sponsor.

Anheuser-Busch InBev: Russia is not known as a beer drinking country. Regulations put in place by the government have made beer a bit more expensive in Russia than other alcoholic beverages. However, during The World Cup, rarely has the camera panned to the audience without catching a beer drinking fan holding a Bud cup. There have been reports that soccer fans are drinking Russia out of beer. The regulations put on beer and its lack of popularity in Russia gives bars and restaurants little reason to carry large supplies. The idea that the country is running dry and will have to re-up with larger supplies to meet the demand is good news for Anheuser-Busch InBev and other beer companies.

Realistically, it takes a lot more than The World Cup to move the needle on the stocks listed here. A good showing at The World Cup may impact the next quarter's earnings, but likely won't do much more past that. However, a great showing for example, like Messi's Argentina team winning it all could do wonders for Adidas; and the same can be said for Nike if one of their superstars Ronaldo or Neymar win it all. The World Cup could benefit Twitter in the long run if the company is able to grow it's active users during the month of The World Cup. Prior to any investment conduct your own research and may your next investment be your best investment.

For more detailed investment research be sure to check out our quarterly newsletter The Seville Report. If you’re looking to get started investing or just need a few investment ideas for your portfolio we suggest you check it out.

The Seville Report | The Investment Newsletter

#WorldCup #WorldCup #WorldCupInvestments #Nike #Adidas #FootLocker #Dicks #Twitter

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