With the Olympic Games which will take place during the summer in Paris, sport will occupy the top of the bill for several weeks. This global event joins an already busy calendar of international sports competitions. In 2024 alone, the program is dense: after the Euro handball, the African Cup of Nations football, the World Swimming Championships in Qatar, which have just ended, there will be the Euro football in Germany, the World Rowing Championships in Canada, etc., not to mention the major annual events (Formula 1, Roland-Garros, Tour de France, etc.).
In just a few years, sport has established itself as an investment theme in its own right, with forty-two funds at European level managing nearly 6 billion euros. However, in 2023, this category did not shine. “It was not in Olympic form on the stock market. Companies in this sector that are known to be cyclical have suffered from the economic slowdown. The most affected were growth stocks, which are very present in this universe”comments Jean-François Bay, general manager of Quantalys.
Inflation has had the effect of eroding household purchasing power. The latter have cut their spending on non-essential goods (shoes, clothing, accessories). Added to this were supply problems. As a result, the big stocks (Nike, Adidas, Puma) declined. With the proliferation of new sporting events, players directly linked to the professional side of the sector (equipment manufacturers, accessory manufacturers, broadcasters) could regain their health.
If the situation is not yet good, many experts are in the starting blocks. “It is opportune to position yourself now, because the market is not expensive”, says Théo Colombani, manager in charge of the Mandarine Global Sports fund. “This sector should once again generate turnover growth within five years”, adds Doris Santillana, French client director of Allianz Global Investors France, which has a sports and well-being fund.
The rise of sports practice
To date, the medium-term outlook is optimistic. This sector is worth, globally, 5,000 billion dollars [environ 4 600 milliards d’euros], and in the medium term it should increase by 8% per year. In the short term, “we expect a clear rebound in activity in the second half of 2024”, advances Nicolas Kieffer, manager of M Sports Solutions SRI at Montpensier Finance.
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