GO
Loading...

Soccer Success! The stocks ready for a World Cup bounce

Wednesday, 16 Oct 2013 | 2:32 AM ET
Who gains from soccer success?
Tuesday, 15 Oct 2013 | 11:45 AM ET
Simon Chadwick, professor of sport business strategy and marketing at Coventry University, discusses the economic impact of soccer teams qualifying for the World Cup.

English soccer fans were booking their flights to Rio de Janeiro Tuesday evening after a shaky qualifying round finally ended with the national team qualifying for next year's Brazilian World Cup.

But if investors can't wait until next summer to bathe in success then Simon Chadwick, professor of sport business strategy and marketing at Coventry University, has given his tips on what stock market sectors could do well with England's qualification.

"Normally, what you tend to find when teams qualify for World Cups, is in the run-up to and during the actual tournament itself you do tend to get an uplift in things like beer, pizza and TVs," he told CNBC Tuesday, adding that online gambling sites would normally benefit too.

(Read More: Beer to get World Cup boost worth millions)

"Even companies that produce barbecue sets, because as you can imagine people hold parties."

Chadwick is expecting an uplift to stock markets in general on Wednesday with beverages, food, retail and sports merchandising all seeing a footballing fillip. But be warned not all European indexes have seen their national side secure their trip to Brazil next year.

Goals from Wayne Rooney and Steven Gerard were enough to give England the edge against Poland on Tuesday evening. They'll be joined by Spain, Russia and Bosnia-Hercegovina who also booked their place on Tuesday. Meanwhile, Belgium, Germany, Italy, Netherlands and Switzerland have already started to book hotels in Brazil.

(Read more: Will Brazil be ready to host the World Cup in 2014?)

Print media is still profitable: Smiths CEO
Mark Cashmore, CEO of Smiths News, discusses newspapers and how to monetize news in the digital age.

However, fans of Croatia, Sweden, Romania, Iceland, Portugal, Greece, Ukraine and France still face a nail-biting wait with playoff matches arranged for next month.

But while some stocks might see short-term bounce, Chadwick explained that when the tournament starts in June next year, productivity in the workplace could be hit.

"During tournaments themselves you do tend to see tangible evidence of productivity declining. Firstly, because everybody is talking about (soccer) and they should be working. And I think secondly as well, people take time off work," he said, adding that sickness and absence rates tend to go up during major tournaments because people might look to stay at home and watch soccer on TV.

Mark Cashmore, CEO of Smiths News, a British newspaper and magazine distribution company, told CNBC the company sells collectible soccer stickers and the bounce to revenues could be in the region of £5 million-£15 million ($8-24 million).

"Kids still buy lots and lots of football stickers and we tend to get a boost every two years as long as England qualify for the European Championships or the World Cup," he said.

"So come June next year we would expect to see lots of products supporting England in the World Cup and that should give us a boost to our sales in the current year."

CNBC.com's Matt Clinch. Follow him on Twitter @mattclinch81

Featured

Contact Sports Business

  • CNBC NEWSLETTERS

    Get the best of CNBC in your inbox

    › Learn More