With Football Index releasing the long awaited news regarding TV adverts this week, we thought we'd take a look at the effect that February’s Radio Ads had upon the market.
News from inside the company suggests that the TalkSport ads were a resounding success, with record transactions recorded in March. And now that Football index have announced their sponsorship deal with ITV and the Europa league, can we expect the TV ads to perform as radio ads with steroids?
With this in mind we decided to take a look at how this increase in trade has affected prices across the board, taking a look at 5 high end players, 5 players settled in the middle of the index and 5 players that are more affordable. We have taken one player from a top 6 club in each scenario to hopefully give a balanced viewpoint.
First of all we will take a look at the high end market – those players with a premium price due to their ability, or potential ability, to nail down regular buzz wins.
Of the 5 players we looked at, perhaps somewhat surprisingly Wayne Rooney had the lowest growth since the release of the adverts; this could be in part down to his uncertain future. However should he move to Everton he should pick up plenty of buzz wins and at least maintain his current price. He did peak at around £4.30 and as rumours pick up it wouldn’t be at all a surprise to us to see him level out at that price.
This would bring his growth in line with the other candidates in this section, all of whom have seen at least 20% growth since the radio ads – a huge return in just 2 months’ time! Harry Kane in particular has shot up just shy of 50% in this time! This seemingly consistent growth within our sample players bodes well should the TV ads comfortably exceed the response of the TalkSport adverts. Couple this growth with regular buzz wins and you have a fantastic opportunity for not only capital appreciation but also solid dividend returns.
Now let’s now take a look at the middle of the road price point.
These players whilst still playing at top 6 clubs, are still very affordable for most investors in terms of bulking out a portfolio with a decent number of futures. They may not be competing for a buzz win as regularly, however all are capable of winning the dividend on their day.
The growth in this area of the index doesn’t show to be as consistent as the top-end. For instance, Juan Mata jumping over 40% and has even been higher before his injury setback. However, both Roberto Firmino and Kevin De Bruyne have both decreased in value since the radio ads in February. This could be in no small part down to Firmino’s injury troubles and the fact De Bruyne has been playing a more reserved role in City’s midfield. A return to goal scoring form for either could present great value given past price points have shown both to be capable of big rises.
Theo Walcott has shown somewhat moderate growth in this time, just 5%, however compare that to other forms of investing in a two month period and those results seem competitive in comparison.
Overall, there is definitely value in this price range, however based on our sample, the investment and potential for growth doesn’t seem as certain as the high end players. Performance levels and injuries are definitely more of a factor!
Finally let’s look at the bargain basement!
This area of the index can offer superb value if you can spot the potential early. With regards to growth since the radio ad, we can see the percentage increase is as good as any of the rest of the index. However, bear in mind that in terms of increase in money, it's likely to be less than those at the top for obvious reasons!
But for new investors looking at getting off the ground on FI, this could be a great place to look as multiple futures can be bought for a much smaller outlay. For example, £120 would get you 100 Oxlade-Chamberlain futures. Compare this to Harry Kane where you are looking at around 25 futures. A decent transfer rumour and the Ox could hit £1.50 plus offering quick returns that could then be reinvested elsewhere. There are various opportunities like this in the mid range and lower ranged players and can be a great way to fund those more expensive purchases.
In conclusion the adverts on ITV’s Europa league show can only be a good thing for the growth of the index. Hopefully this video gives an idea of how the talk sport radio ad’s affected the market and helps you decide where to invest before the advert airs. Obviously, as with the radio ad, these results aren’t instant and as new investors gain more confidence in the market the growth starts to appear steadily.
Good luck from us at Footy Index Scout in ensuring that the TV adverts are profitable for your portfolio! Let us know how you get on with a message on Twitter or a comment on YouTube.
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