Beşiktaş surges on new playbook
Güncelleme Tarihi:
by Oktay Özdabakoğlu - Referans
Oluşturulma Tarihi: Mayıs 25, 2009 00:00
ISTANBUL - The shares of sports club Beşiktaş draw investor attention as the team’s success on the field will be reflected directly on its financial statements. Beşiktaş shares gain a whopping 941 percent within the last six months as the club reaches an overall market value of 500 million Turkish Liras.
Istanbul-based sports club Beşiktaş’s successful season, winning the Fortis Turkish Cup and as the leader of the Turkcell Super League hours before yesterday’s crucial match with arch rival Galatasaray, has translated to big rewards off the field, as its stocks continue rising on the Istanbul Stock Exchange, or IMKB.
The rise in Beşiktaş stock, which was the best performer during the two sessions on Thursday and closed the day with a 17.9 percent rise, at 12.50 Turkish Liras, has reached 941 percent in the last six months. Beşiktaş was traded at only 1.20 liras on Nov. 21, 2008.
The rise in stocks stems from the fact that the publicly-owned company will grab the revenues of the team’s success on the field. The rise in Beşiktaş shares has reached 95 percent in the past week, 251 percent in the last month and 630 percent in the last three months.
The stock continued its climb until Friday, when investors basked in their profits as Beşiktaş declined 3.20 percent to 12.10 liras per share.
Booming market value
Beşiktaş, which has a free float of 30 percent, has reached a market value of 500 million liras, or $325 million, overtaking Galatasaray, another Istanbul-based sports club, which has a market value of $170 million. According to Forbes magazine, Fenerbahçe has a market value of over $1 billion.
At the end of September last year, Beşiktaş’s market value stood at 87 million liras while that of Galatasaray was 352 million liras. With a different public offering model than Galatasaray, Fenerbahçe and Trabzonspor, any success Beşiktaş achieves increases the interest of the stocks on the stock market.
The other three sports clubs’ public companies keep a certain amount of the clubs’ revenues, and do not reflect costs, but Beşiktaş went public with all the revenues and costs of the football club. By winning the Fortis Turkish Cup, Beşiktaş reaped $2.6 million in revenues. With the expectation to see a reflection on financial statements, the surge of revenues in the event of league championship has almost boomed the stocks. Galatasaray’s stocks rose only 9 percent when it became the champion last year.
If Beşiktaş wins the Turkcell Super League, the team will play in the Champions League without a pre-selection process. The sports club will earn 5.4 million euros if it enters the Champions League. And if it eliminates the second top league team during the pre-election, Beşiktaş will obtain the toll allocated for that team. Therefore, the income obtained from entrance to the Champions League may total nearly 11 million euros. And each point Beşiktaş wins during the Champions League will increase this figure.
Filling the coffers
Add to that live broadcast revenues, sponsorship and advertising incomes, royalty incomes, match proceeds, the championship bonus from the federation, licensed product sales and the rise in combined ticket sales and a possible sale of football players with high-transfer fees will also fill Beşiktaş’s pockets. "Kartal Yuvası," or Eagle’s Nest, a chain selling Beşiktaş products, increased the number of its stores to 30 by adding 18 stores this year, and aims to attain 25 million liras in turnover.
Beşiktaş’s aggregate debts to banks total 50 million liras, according to its nine-month financial statements as of Feb. 20.
Today, Beşiktaş shares are feeling the positive impact of success on the field, but they were pressured in the first half of the season, due to poor team performance. Having ranked as the sixth team and parted ways with Ertuğrul Sağlam, Beşiktaş saw its shares depreciate by 53 percent between Aug. 25 and Nov. 21. Beşiktaş’s public offering model, an attractive one for investors when the team is successful, brings a negative stock picture during unsuccessful times.
Meanwhile, Galatasaray is trying to shift to the Beşiktaş model by joining its public company with its football company. However, the operation has been delayed as it is still seeking financing to the tune of $100 million required for the call to investors.
The rise in Beşiktaş stock, which was the best performer during the two sessions on Thursday and closed the day with a 17.9 percent rise, at 12.50 Turkish Liras, has reached 941 percent in the last six months. Beşiktaş was traded at only 1.20 liras on Nov. 21, 2008.
The rise in stocks stems from the fact that the publicly-owned company will grab the revenues of the team’s success on the field. The rise in Beşiktaş shares has reached 95 percent in the past week, 251 percent in the last month and 630 percent in the last three months.
The stock continued its climb until Friday, when investors basked in their profits as Beşiktaş declined 3.20 percent to 12.10 liras per share.
Booming market value
Beşiktaş, which has a free float of 30 percent, has reached a market value of 500 million liras, or $325 million, overtaking Galatasaray, another Istanbul-based sports club, which has a market value of $170 million. According to Forbes magazine, Fenerbahçe has a market value of over $1 billion.
At the end of September last year, Beşiktaş’s market value stood at 87 million liras while that of Galatasaray was 352 million liras. With a different public offering model than Galatasaray, Fenerbahçe and Trabzonspor, any success Beşiktaş achieves increases the interest of the stocks on the stock market.
The other three sports clubs’ public companies keep a certain amount of the clubs’ revenues, and do not reflect costs, but Beşiktaş went public with all the revenues and costs of the football club. By winning the Fortis Turkish Cup, Beşiktaş reaped $2.6 million in revenues. With the expectation to see a reflection on financial statements, the surge of revenues in the event of league championship has almost boomed the stocks. Galatasaray’s stocks rose only 9 percent when it became the champion last year.
If Beşiktaş wins the Turkcell Super League, the team will play in the Champions League without a pre-selection process. The sports club will earn 5.4 million euros if it enters the Champions League. And if it eliminates the second top league team during the pre-election, Beşiktaş will obtain the toll allocated for that team. Therefore, the income obtained from entrance to the Champions League may total nearly 11 million euros. And each point Beşiktaş wins during the Champions League will increase this figure.
Filling the coffers
Add to that live broadcast revenues, sponsorship and advertising incomes, royalty incomes, match proceeds, the championship bonus from the federation, licensed product sales and the rise in combined ticket sales and a possible sale of football players with high-transfer fees will also fill Beşiktaş’s pockets. "Kartal Yuvası," or Eagle’s Nest, a chain selling Beşiktaş products, increased the number of its stores to 30 by adding 18 stores this year, and aims to attain 25 million liras in turnover.
Beşiktaş’s aggregate debts to banks total 50 million liras, according to its nine-month financial statements as of Feb. 20.
Today, Beşiktaş shares are feeling the positive impact of success on the field, but they were pressured in the first half of the season, due to poor team performance. Having ranked as the sixth team and parted ways with Ertuğrul Sağlam, Beşiktaş saw its shares depreciate by 53 percent between Aug. 25 and Nov. 21. Beşiktaş’s public offering model, an attractive one for investors when the team is successful, brings a negative stock picture during unsuccessful times.
Meanwhile, Galatasaray is trying to shift to the Beşiktaş model by joining its public company with its football company. However, the operation has been delayed as it is still seeking financing to the tune of $100 million required for the call to investors.