For which investors football bonds are suitable

Dusseldorf Football dominates in German professional sport. However, this popularity is not reflected on the capital market: Despite many approaches in the recent past, both football-related stocks and bonds remain a niche product.

At first glance, the yields on bonds in particular look promising. These days it is FC Schalke 04 that is promoting its new corporate bond. Schalke paid 5.75 percent to the subscribers of the bonds. There is also a bonus if promotion to the first Bundesliga succeeds soon. The subscription period ends next Friday. Nevertheless, the high return also reflects high risks that investors have to reckon with.

Put simply, when investing in football bonds, investors are betting on the sporting success of a club, which in turn controls its economic performance. So if the ball misses instead of going into the goal, this can also have a negative effect on the depot.