Are Football Stocks a Good Investment? The Pelé Index Offers a Stark Perspective
Are football stocks a good investment – The 2026 World Cup has officially begun this week, drawing global attention with its 48 teams, 104 matches, and an audience estimated to exceed billions of viewers. For devoted fans, the opportunity to invest in their favorite clubs represents more than just a financial decision—it’s a symbolic gesture of loyalty. In Europe, this aspiration is not merely hypothetical, as a select group of clubs have shares listed on public stock exchanges. However, the real question remains: do these football stocks truly offer value to investors, or are they a niche curiosity driven more by passion than profitability?
A Unique Investment Benchmark: The Pelé Index
At the heart of this debate is the “Pelé Index,” a research tool developed by Aegon Asset Management. Named after the legendary Brazilian footballer, this index tracks all European football clubs with publicly traded shares, dating back to 1998. It transforms the ideal of a fan’s investment into a tangible metric, asking: if you had treated these clubs as financial assets, how would your portfolio have fared over time? The latest performance for the 2025/26 season reveals a troubling trend—football stocks returned just 0.4% this year, far below the 27% growth of global equities and the 17% return of European shares.
When viewed through a longer lens, the index’s underperformance becomes even more pronounced. Over the past 27 years, the Pelé Index has lost approximately 11% of its total value, while global equities have surged by nearly 678%. This stark contrast highlights a fundamental disconnect between the financial markets and the world of football. For instance, €1,000 invested in a basket of these clubs in 1998 would now be worth roughly €892, a fraction of what it could have become in a global equity fund—where the same amount would have grown to around €7,784.
The index comprises 18 European clubs, each weighted by their market value. This structure means the largest and most prominent teams, such as Manchester United and Juventus, hold significant sway. While these clubs dominate the headlines, the index also includes smaller, less well-known teams like Brøndby IF and Silkeborg IF from Denmark. Despite this mix, the lack of Spanish representation stands out. Spain’s LaLiga, home to two of the sport’s most iconic franchises, is absent from the list due to the absence of publicly traded Spanish clubs.
The Structural Challenges of Football as an Investment
Jordy Hermanns, a portfolio manager and investment strategist at Aegon Asset Management, explains that the underperformance of football stocks is rooted in the clubs’ unique purpose. Unlike traditional companies, which prioritize shareholder value, football clubs are driven by the pursuit of victory, fan engagement, and cultural identity. “These objectives are not only different, but often in conflict,” Hermanns notes. This divergence in priorities creates a structural misalignment that consistently hampers financial returns.
“Football clubs may be irreplaceable cultural institutions, but they have rarely been good investments.”
Hermanns highlights that key decisions—such as transfers, wage structures, and stadium investments—are primarily motivated by the desire to win matches and secure trophies. While these choices can generate short-term excitement, they often lack the financial discipline required for sustained growth. For example, the transfer of Cristiano Ronaldo to Juventus in 2018 briefly boosted the club’s stock price, driven by optimism about shirt sales and European success. Yet, this momentum faded as the team struggled to maintain its competitive edge, finishing sixth in Serie A this season and seeing its shares drop to below €2—representing a 35% decline.
The Pelé Index’s performance underscores a broader pattern: football stocks rarely outperform broader market indices. Even when clubs operate in wealthier leagues or boast global recognition, their financial returns remain inconsistent. This suggests that factors like brand value, scale, or geographic reach are not sufficient to guarantee long-term profitability. Hermanns argues that a more disciplined approach to financial management, with incentives tied to shareholder outcomes, is essential to reversing this trend.
A Long-Term View of Football’s Financial Struggles
Looking at the data over three decades, the picture remains unchanged. Football clubs, while capable of inspiring loyalty and capturing the imagination, have seldom provided a reliable return on investment. The Pelé Index serves as a cautionary tale, illustrating how the priorities of football—such as winning and attracting fans—can overshadow the financial goals of investors. “The beautiful game deserves your heart, but your investment portfolio deserves your reason,” Hermanns emphasized.
One of the key challenges for football stocks is their cyclical nature. A single season of success, like a title win or a blockbuster transfer, can create a surge in share prices, only to be followed by a period of underperformance. However, Hermanns suggests that this is not just a short-term issue. The structural differences between football clubs and traditional businesses—such as the emphasis on short-term glory over long-term stability—explain the consistent underperformance. Clubs often prioritize immediate results, which can lead to unsustainable financial strategies.
For instance, the success of a team like Manchester United, which holds the largest share in the Pelé Index, is frequently tied to high-profile signings and ambitious projects. Yet, these decisions may not always align with financial prudence. Similarly, Juventus’s struggles after Ronaldo’s departure demonstrate how quickly a club’s fortunes can shift. While the market may reward short-term performance, it often penalizes clubs that fail to balance ambition with financial discipline.
Despite these challenges, the Pelé Index remains a valuable tool for investors seeking to understand the dynamics of football as an asset class. It highlights the potential of clubs like Fenerbahçe SK from Turkey and Olympique Lyonnais from France, which are not only competitive on the pitch but also demonstrate the diversity of the index. However, the absence of Spanish clubs raises questions about the completeness of the data and the opportunities that might be overlooked.
Ultimately, the Pelé Index reflects a reality that many investors might not expect: football stocks are a high-risk, low-reward proposition. While they offer a unique way to engage with the sport, their performance lags behind traditional equities. Hermanns’ insights suggest that for football to become a viable investment, its management must adopt a more structured approach, aligning strategic decisions with financial goals. Until then, the index will continue to serve as a reminder that the beautiful game, though inspiring, may not always be a sound financial choice.
