How World Cup could net profits for your Isa
THE World Cup begins a week tomorrow — and it’s not just the players preparing for battle.
Shops, pubs and bookies are all hoping to cash in as fans across Britain tune in to the month-long spectacle that comes around every four years.
The World Cup is the biggest global sporting event — the final between Germany and Argentina in 2014 attracted 20.6 million viewers across the BBC and ITV. And that typically means sales of beer, bets and television adverts soar.
A study by the Centre for Retail Research (CRR) and shopping website VoucherCodes found this summer’s World Cup could provide a £2.7 billion boost to the economy if England make it to the final.
Even if they only make it past the competition’s first round of three games, it could add more than £1.3 billion.
Investors should find their Isas and pensions get a World Cup boost, too. One obvious type of company to benefit is sportswear retailers. Fans are expected to splurge up to £463 million on shirts, boots and other apparel worn by their heroes, the CRR says.
As one of the tournament’s main sponsors, German sportswear giant Adidas is line for a sales surge.
Not only does it supply the kits of a number of tournament favourites including Argentina, Spain and reigning champions Germany, it will also supply the tournament’s official match ball, replicas of which cost up to £130.
For investors expecting an Adidas windfall, Adrian Lowock, of investment firm Architas, tips Jupiter European, which has turned £10,000 into £20,136 in five years.
Alexander Darwall, the fund’s manager, invests £4.50 in every £100 of savers’ money in the German sports titan. Another option is Standard Life UK Smaller Companies, a favourite of Hargreaves Lansdown. It has turned £10,000 into £20,270 in five years. One of its biggest holdings is JD Sports, accounting for £3.56 in every £100 in the fund.
JD sells everything from football kits and balls to football boots and sports bags across 385 UK stores, making it one of Britain’s biggest sports chains.
The World Cup is a good excuse to have a few beers with friends while cheering on your team. Pubs and cafes are expected to bank at least £128 million — and as much as a possible £488 million, depending on how far England go — as fans flock to their local boozer to watch games.
One company expecting a boost from the World Cup is Ei Group, whose 4,500-pub chain is the UK’s largest.
Ben Yearsley, of adviser Shore Financial Planning, recommends Artemis UK Select, which dedicates around 1 pc of the fund’s money to Ei. It has turned £10,000 into £16,391 in five years.
Major sports tournaments are huge money-spinners for the TV stations that win the rights to show them.
Millions will tune in over the course of the 32-day tournament, giving a big boost to BBC and ITV, which hold the UK rights. TM Sanditon UK, tipped by Hargreaves Lansdown, has a big stake in ITV, accounting for more than £5 in every £100 it invests. The fund has turned £ 10,000 into £ 10,800 since launch in 2015.
Sales of flat-screen TVs also usually spike in World Cup years as fans upgrade their kit.
The CRR estimates that British football fans could spend anywhere between £160 million and £431 million on new televisions throughout the tournament. As the world leader in TV manufacturing, accounting for almost one in five sales, Samsung could cash in. The Korean electronics giant is the fifth biggest pick in First State Asia Focus, which has turned £10,000 into £18,000 since launching in 2015. Mr Yearsley says J O Hambro UK Growth is another good punt for investors. One of its picks is a firm called Goals Soccer Centres, which runs 46 five-a-side football sites across the UK. Studies have shown people tend to do more sport in World Cup and Olympics years, meaning Goals could profit as football mania sweeps the country. J O Hambro UK Growth, which invests around £ 1.60 in every £100 in Goals, has turned £10,000 into £15,500 in five years. More often than not, the bookmakers get a windfall from major sporting events — particularly if there are a few high-profile upsets. Analysts — and the bookies themselves — are confident that this summer’s World Cup will be no different. GVC is one of the world’s biggest betting groups, with Ladbrokes, Coral and Bwin all part of its stable. It is one of the biggest holdings in Old Mutual Mid Cap, which has turned £10,000 into £21,667 in five years. p.thomas@dailymail.co.uk