Can you profit from investing in sport?

As a top fund manager buys shares in Man Utd . . .

TO MOST of us, the amount of money sloshing about in professional football seems almost obscene.

But could the stonking fees paid for stars such as Manchester United’s new £75 million striker Romelu Lukaku be a sign that there’s money to be made for investors?

That’s the verdict of one of Britain’s most successful fund managers. Nick Train, who runs the £4.2 billion CF Lindsell Train UK Equity Fund and the Finsbury Growth and Income Trust, last week snapped up a big block of shares in Manchester United.

Mr Train believes the club has the potential to be worth twice as much as the £2 billion it is now valued at, partly thanks to its share of television rights, but also because it is the best- supported club in the world. In the summer, American business magazine Forbes estimated that Manchester United was the world’s most valuable sports team.

Also on its list were U.S. football franchise the Dallas Cowboys, baseball team New York Yankees and Spanish football giants Real Madrid. Many of the top clubs make huge sums from merchandise sales worldwide.

Mr Train isn’t the only fund manager cashing in on Britain’s passion for sport. This summer, fans have watched Roger Federer win a record eighth Wimbledon Men’s Singles title, Chris Froome secure another Tour de France victory and witnessed unprecedented success for Britain in the sprint relays at the World Championships, held in London last month.

Experts say big sporting successes such as these prompt fans to buy new bicycles, trainers and tennis rackets.

And that’s good news both for the companies that sell the gear — and their shareholders.

Halfords profited from bike sales after the London Olympics in 2012, and JD Sports is benefitting from the popularity of ‘ athleisure’ clothing — kit designed for the gym, but often worn for the sake of fashion — and a shift from budget to quality gear.

JD, which was the exclusive retailer for the Wales and Northern Ireland football kits for Euro 2016, has seen profits rocket 81 pc to £238 million in a year.

Just under 2 pc of the Old Mutual UK Mid Cap fund is invested in the retailer. The fund has turned £10,000 into £26,390 in five years.

Matt Hudson, manager of the Schroder UK Opportunities Fund, expects more fans to head to local pubs now the new Premier League football season is well under way.

He likes pub chain Greene King, which revealed record sales of £2.2 billion in the 12 months to April, up 7 pc. It posted disappointing figures for the 18 weeks to September, with sales down 1.2 pc. However, this was compared to the previous summer when the football European Championships boosted sales. Next summer, there is a World Cup.

‘As people spend their money on experiences, rather than things, the market for eating out is growing 4 pc every year,’ says Mr Hudson. ‘People are looking for good brands and good venues, and that’s something Greene King has a lot of.’

Greene King’s shares are down 8 pc to 553p in five years. However, its shares were up over five years until a share fall after its most recent sales figures were published.

Mr Hudson’s fund has turned £10,000 into £15,610 in five years. In big football years — 2018’s World Cup, for example — pubs and supermarkets do very well. Many fans stock up on drinks and food for big games.

Mr Hudson tips Morrisons. He says it has stuck to a pure supermarket model, rather than following Tesco and Sainsbury into other areas.

Helal Miah, an analyst at stockbroker The Share Centre, prefers Marks & Spencer. ‘ You think Wimbledon, you think strawberries and cream — and I think M&S,’ he says.

M&S food has 20.5 million customers and last year saw sales climb more than 4 pc to £5.6 billion. Yet concerns about the fashion business — overall profits plunged 64 pc last year — mean shares are down 7.6 pc to 340p over the past five years. Threadneedle UK Equity Income fund, which turned £10,000 into £17,690 in five years, has 2.9 pc invested in M&S.

And bookmakers could clean up — but only if the favourites win. A number of shock results last year — not least Leicester City’s Premier League win — hurt profits as bookies faced big payouts. Mr Miah likes William Hill, even though it faces stiffer competition after rivals merged to form larger competitors Paddy Power Betfair and Ladbrokes Coral. He says William Hill’s growing online presence will help, as gamblers opt for tablets and phones over betting shops. After a tricky time, with gambling regulation getting tougher, William Hill’s share price has slipped from 282p to 246p over the past five years. But Mr Miah says the firm is expanding overseas. Some 18 pc of its sales now come from Australia and the U.S. and this number is rising.

With millions of eyes glued to TV screens, advertisers are jostling for the best slots. That’s good news for the companies that own the rights to show the most popular sports.

While BT and Sky tussle over the football, Mr Miah likes ITV, which has exclusive rights to the Tour de France in the UK. Advertising sales at the business fell 3 pc to £1.7 billion last year, but the share price has shot up 75 pc over the past five years, from 90p to 157.6p. Some 2.7 pc of the Threadneedle UK Ethical Equity fund is invested in ITV.

The fund, which launched in 2015, has turned £10,000 into £12,180 over the past year.