The Good Gift Guide
Own Shares in your Football Club
How would you like to own part of your favourite football team?
With the football season well under way and the World Cup coming up in the summer, football is bigger than ever.What better time to give your football crazy loved one a gift they'll never forget - shares in their favourite football team.
Owning shares in their favourite football team will allow your loved one to have a real say in the way their favourite club are run. They will be able to go to shareholder meetings and voice their opinions on the manager, players and everything else to do with their favourite club. Of course the shares can also prove to be a great investment and earn your loved one some additional money.
What clubs can I buy shares in?
There are currently 19 clubs available to buy shares in. Several teams from the English Premier League are available, including Manchester United, Leeds United, Newcastle United and Aston Villa. Some Scottish clubs are also available, including Celtic.What do I get with my share certificate?
There are numerous gift options when purchasing shares in your desired team. A number of frames are available to allow your loved one to hang their deeds to part-ownership of their beloved football team on their wall, including gold frames, black frames and pine frames.The share certificate also entitles the owner to shareholder perks, benefits and even dividends. Most people have at least one club that has a special meaning for them, and a share certificate of that club can make a great gift. For some clubs the actual certificate is especially attractive as well.
All in all shares in a football club make a cool and truely unique gift to your footie mad loved one.
Good Gift Guide recommendation : 4/5
Check for shares in your team here
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Today, it seems apparent that only die-hard football club fans are prepared to invest in football shares. Most Premiership clubs look unlikely to be floated any time soon.
"It is possible that a top club like Arsenal could seek a full flotation," says Vinay Bedi, football analyst at stockbrokers Wise Speke.
"I don't say it will never, ever, happen again - but it would have to be a top club playing in Europe every season. For a club like Arsenal, it would be a significant way to raise significant amounts of money.
"For other clubs, such as mid-table Premiership, or a "yo-yo club" going up and down between Premiership and Championship, I think it is unlikely."
Bedi used North-East football clubs Newcastle United and Sunderland as examples of stock market failure.
Newcastle United Shares
Newcastle United floated in 1997 at 135 pence per share. The issue was over-subscribed and thousands of loyal supporters and businessmen alike paid approximately £500 for a stake in the club. Unfortunately, shares in the club are now trading at around 45 pence.
Mr Bedi said, "The reality is that Newcastle have never really got back to anywhere near their float level. It had a little move upwards after flotation but it has been a generally downwards pattern ever since."
A large chunk of Newcastle United Football Club is in the hands of the Hall family who may, according to Mr Bedi, be eventually willing "to sell, if they could get a premium price".
Sunderland Shares
Just down the North East English coast, Sunderland delisted its shares in the autumn of 2004 after floating on the stock market in December 1996.
As with many other football clubs, Sunderland saw little potential for raising capital on the stock exchange.
Sunderland still remain a public limited company with shareholders, but will no longer be listed on the stock exchange.
Shares went on sale at 585 pence, valuing the club at £62 million. The float raised £10.7 million, allowing the club to build the Stadium of Light. When Sunderland delisted, the shares were worth just 31.4 pence each.
Their constant promotions and relegations did not help the club. The loss of revenue after dropping from the Premiership would cause financial difficulty for any club, especially one who were building a new stadium at the time.
Clubs with listed shares
Arsenal (Holdings)
Aston Villa
Birmingham City
Celtic
Charlton Athletic
Heart of Midlothian
Manchester United
Manchester City - Ofex
Millwall (Holdings)
Newcastle United
Preston North End
Rangers - Ofex
Sheffield United
Southampton (Leisure)
Tottenham Hotspur
Watford (Leisure)
West Bromwich Albion
Along with Sunderland, a number of other football clubs have withdrawn their listings over the years, including Aberdeen, Bolton, and Chelsea, which were famously bought by Russian billionaire Roman Abramovich.
"I would not be surprised if a number of other club shares are eventually delisted. To be honest most football shares have done pretty badly," says Harry Philp, an analyst at football consultancy Inner Circle Sports.
"The reason has generally to be with high football issues, such as high levels of wages and the power of the players."
Philp mentioned that recent share issues at Glasgow rivals Rangers and Celtic were underwritten by major shareholders already at the clubs - David Murray at Rangers and Dermott Desmond at Celtic.
"Most of football shares are not actually being traded… the only ones buying in are fans who do not already have shares, they are buying for sentimental reasons to have a share in their clubs.
"Other fans, who bought shares initially, are wary about getting their fingers burnt again."
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