India’s finance minister stated on Friday that the country would continue purchasing Russian oil due to its economic benefits. 

This decision comes despite the Donald Trump administration’s imposition of substantial import tariffs on Indian goods, partly attributed to India’s energy acquisitions from Moscow.

India, the world’s third-largest oil importer and consumer, has no intentions of discontinuing Russian oil supplies, according to Finance Minister Nirmala Sitharaman in an interview with local news channel CNN-News18.

Geopolitics 

India has emerged as the primary purchaser of Russian seaborne crude, capitalising on discounted prices. This shift occurred as Europe and the US ceased importing Russian oil following Moscow’s 2022 invasion of Ukraine.

New Delhi asserts that its acquisition of Russian oil has stabilized the markets.

US President Donald Trump, actively engaged in efforts to mediate a resolution to the ongoing conflict in Ukraine, has publicly stated that India’s substantial oil imports are inadvertently contributing to the financing of Moscow’s military operations. 

In response to this assessment, the Trump administration recently implemented a significant economic measure, imposing a 50% tariff on oil imports originating from India. 

This tariff was officially put into effect last month, signaling a direct financial consequence for India’s trade practices in the context of the Ukraine conflict. 

The move underscores the US’ stance on nations whose economic activities are perceived as indirectly supporting Russia’s war effort, even if those activities are undertaken for domestic energy security or economic stability.

Oil imports

Sitharaman said:

We will have to take a call which (supply source) suits us the best. So we will undoubtedly be buying it. 

She further stated that the majority of India’s foreign exchange expenditure is allocated to acquiring crude oil and refined fuels.

In the fiscal year ending March 2025, oil and refined fuels purchased from international markets constituted approximately 25% of the nation’s total import expenditures, according to a Reuters report. 

This significant reliance on overseas energy sources underscores a critical aspect of the country’s economic landscape and its energy security strategy. 

The fluctuating global oil prices and geopolitical events directly impact the national budget and can influence domestic fuel prices, subsequently affecting industries and consumers alike. 

Sitharaman added:

Whether it is Russian oil or anything else, it’s our decision to buy from the place which suits our needs whether in terms of rates, logistics, anything.

Modi meets Putin

This week, Chinese President Xi Jinping hosted a summit in Tianjin, where Indian Prime Minister Narendra Modi and Russian President Vladimir Putin demonstrated their solidarity against the West.

Some observers have dubbed the meetings, which included leaders from countries like North Korea and Myanmar, as “the Axis of Upheaval.” 

Modi’s presence at these meetings was seen by some experts as a result of New Delhi’s disagreement with Washington.

Negotiations between the two nations regarding a deal to lessen the US tariff load on Indian products have collapsed.

Since the cancellation of the US trade officials’ visit to New Delhi last month, there have been no physical meetings between the two sides.

US Treasury Secretary Scott Bessent has accused India of “profiteering” by importing Russian oil at reduced prices and subsequently reselling the refined fuel at an elevated rate.

On Friday, Trump took to Truth Social to comment on Putin and Modi’s presence in China.

“Looks like we’ve lost India and Russia to deepest, darkest, China. May they have a long and prosperous future together!” he wrote.

The post India to continue Russian oil purchases despite US tariffs appeared first on Invezz

Guidewire Software stock (NYSE: GWRE) jumped 18% to a new all-time high on Friday after posting quarterly results that beat analyst expectations.

The company reported record Annual Recurring Revenue and issued a bullish revenue forecast for fiscal 2026.

Investors responded quickly, driving the stock higher, as confidence grew in Guidewire’s push into cloud-based insurance software.

Deal activity is picking up, and momentum in the Property & Casualty sector appears to be supporting the rally. Analysts say the results show the company is successfully turning its platform investments into recurring revenue streams.

Strong fiscal 2025 earnings drive Guidewire Software stock

Guidewire Software’s strong fourth-quarter results fueled Friday’s 18% jump in the stock.

The company reported $356.6 million in revenue for the quarter ended July, up 22.3% from a year ago and well above analyst estimates of roughly $338 million.

Earnings also surprised to the upside. Adjusted EPS came in at $0.84, compared with the $0.63 consensus, and up from $0.62 in the prior year.

Investors cheered the results as evidence of continued strength in Guidewire’s cloud-based insurance software business.

Guidewire Software hit a major milestone in its fourth quarter, with Annual Recurring Revenue climbing 19% to $1.032 billion on a constant currency basis.

The growth was driven by bigger deals and higher volume, including a new 10-year deal with Liberty Mutual.

Subscription and support revenue rose 33% to $201.9 million. License revenue added 5%, and services revenue increased 20%, showing gains across the board.

Investors cheered the results as evidence that Guidewire’s cloud platform is gaining traction and producing predictable revenue streams.

Guidewire Software said cloud margins are improving faster than expected, with subscription and support gross margin nearing 70%. The company said this strengthens confidence in its ability to deliver high-value cloud services.

License revenue rose just 1% as customers continue migrating to the cloud, but Guidewire remains optimistic about long-term growth in its cloud ecosystem.

The company is also investing in data analytics and AI-driven tools to improve pricing and claims management for insurers, a move analysts say could drive further momentum.

What analysts say?

Analysts are mostly positive on Guidewire Software stock following its strong fiscal 2025 results and upbeat guidance for fiscal 2026.

In a recent survey of eight firms, most carry “Outperform” or “Buy” ratings, with price targets lifted to between $275 and $300.

RBC Capital, Oppenheimer, Stifel, and Wells Fargo all cited strong ARR growth and strategic deals, including the 10-year alliance with Liberty Mutual, as reasons for their bullish stance.

The consensus rating stands at a Moderate Buy, with analysts confident in the company’s cloud transition and recurring revenue expansion, even as license revenue shows only modest gains.

The post Guidewire Software stock hit new all-time high on Friday: here’s why appeared first on Invezz

The JPMorgan NASDAQ Equity Premium Income ETF (JEPQ) is firing on all cylinders as investors boost their allocations. It has jumped to a record high, while its inflows have jumped by over $8 billion this year. It has had net outflows in just two weeks this year.

JEPQ now holds over $29 billion, making it one of the biggest funds in the covered call industry. Still, despite this growth, and its 11% dividend yield, there are reasons to avoid it this year.

JEPQ ETF is expensive 

The JPMorgan NASDAQ Equity Premium Income ETF is an active managed fund that mostly tracks companies in the Nasdaq 100 Index and then generates income from selling call options.

The fund generates its dividend from the portfolio dividends and also from the call option premium. While the premium is good, it also caps the long-term gains, especially when the Nasdaq 100 Index is in a strong rally.

As such, being an actively managed fund, is more expensive than other passive funds like the Invesco QQQ ETF (QQQ) and the Vanguard S&P 500 (VOO). In this case, it charges an expense ratio of 0.35%, meaning that $100,000 costs about $350 annually.

In contrast, Invesco NASDAQ 100 ETF  (QQQM) charges 0.15%, which costs about $150 a year. The $200 difference is a big one, especially when you are holding it for many years.

JEPQ does not generate excessive returns

A high expense ratio is always understandable when one is investing in an asset that has demonstrated its outperformance. 

In JEPQ’s case, the main benefit is that it has a high dividend yield than most ETFs. Its 11% yield is much more than the 1% that the Nasdaq 100 Index offers. This means that one always receives a higher dividend check than those who invest in QQQM.

The challenge, however, is that dividend returns don’t necessarily lead to higher total returns, which include the stock performance and the dividend.

By leveraging the covered call strategy, the fund’s gains are always capped, especially when the Nasdaq 100 Index is in a strong rally.

As such, when considering the total return, the QQQM ETF consistently outperforms JEPQ. QQQM’s total return in the last 3 years was 100%, while JEPQ gained by 73%. A 27% difference is substantial and not worth giving up.

JEPQ has tax limitations 

The other important reason to avoid the JEPQ ETF is that it has tax limitations that are not worth it. For one, unlike other popular covered call ETFs, JEPQ uses equity-linked notes (ELN), which don’t qualify for preferential tax treatment. Instead, the options premium are taxed at a less favorable ordinary income tax rate.

All this means that the JEPQ ETF is both an expensive fund offering a lower return and one that is taxed at a higher rate than ordinary dividends. 

To sum it all up, most investors with a long-term horizon will always do well by investing in simple passive ETFs than the fancy active funds.

The post Top 3 reasons to avoid the JEPQ ETF despite its 11% yield appeared first on Invezz

Wall Street analysts believe Lululemon Athletica Inc (NASDAQ: LULU) will take time to recover after the athleisure specialist trimmed its full-year guidance for profit and revenue.

In the earnings release, Calvin McDonald, the company’s chief executive, cited execution missteps in key product categories and “missed opportunities to create new trends” for underperformance.

And while he committed to new initiatives aimed at revitalising the struggling US business as well as increasing marketing spend in China, Bernstein and Stifel experts are convinced these remedies are unlikely to prove a quick fix for Lululemon stock.

Including the post-earnings plunge, LULU shares are down nearly 60% versus their YTD high.

Why did Bernstein and Stifel slash Lululemon’s stock price target

Both Bernstein and Stifel analysts reduced their price target on LULU stock following the earnings release, citing deteriorating fundamentals and macro pressures.

According to them, the athletic apparel retailer is facing a dual threat: continued weakness in the US and signs of slowing momentum in China.

Plus, they no longer see Lululemon as particularly well-positioned to weather the removal of the de minimis exemption and rising tariffs.

Additionally, even the affluent consumer is now pulling back on discretionary spending amid rising concerns of inflation, which is proving painful for a premium-priced brand like Lululemon.

According to CEO Calvin McDonald, the company has let product cycles drag too long, especially in casual wear, leading to a stale assortment and missed trend opportunities.

LULU shares are not trading at an attractive valuation

While Lululemon shares have tanked sharply this year, they’re still priced at a premium compared to peers.

It’s forward price-to-earnings (P/E) ratio of nearly 14 is hard to justify given the revised guidance and slowing US sales.

And its price-to-sales (P/S) multiple of 2.25 currently sits well above 0.42 for Under Armour.

Compounding concerns is insider activity: over the past 12 months, executives have aggressively sold LULU stock.

Insider ownership currently sits below 1.0%, suggesting limited alignment with long-term shareholders.

Note that insider sales often indicate a lack of confidence in the company’s long-term prospects and are, therefore, meaningfully negative for Lululemon Athletica Inc in 2025.

How to play Lululemon shares after Q2 earnings

Lululemon’s management is betting on China to offset domestic softness, ramping up marketing spend and expanding its store footprint.

While the brand has gained traction in the region through localised products and community engagement, the increased investment will likely compress margins in the short term.

With operating margins already down 210 basis points in the second quarter and tariffs adding further cost pressure, the profitability picture sure looks bumpy for LULU shares.

In conclusion, investors hoping for a quick rebound in Lululemon stock may be disappointed – this turnaround will take time, and patience may not be rewarded.

The post Buying Lululemon stock on post-earnings dip could prove a costly mistake appeared first on Invezz

Alphabet Inc.’s Google was fined nearly $3.5 billion by the European Union and ordered to end practices that favour its own advertising technology services, escalating tensions with Washington and drawing renewed scrutiny of the company’s dominance in digital advertising.

The massive fine — the bloc’s second largest antitrust penalty after another Google fine in 2018 — follows a four-year-long probe into the internet giant’s practices. 

The European Commission said Friday that Google abused its market power by giving preferential treatment to its ad exchanges over competitors.

The regulator gave the company 60 days to propose remedies but warned that structural measures, including a divestment of parts of the business, may be required.

“When markets fail, public institutions must act to prevent dominant players from abusing their power,” EU antitrust commissioner Teresa Ribera said. “True freedom means a level playing field, where everyone competes on equal terms and citizens have a genuine right to choose.”

The Alphabet (GOOGL) stock was mostly unaffected by the development.

The stock continued to trade in the green, up a modest 0.5% in the afternoon hours of trading on Friday.

Google’s response

Google said it would appeal the decision.

“This ruling imposes an unjustified fine and requires changes that will hurt thousands of European businesses by making it harder for them to make money,” Lee-Anne Mulholland, the company’s vice president for regulatory affairs, said in a statement.

The company’s ad-tech division, while no longer its largest driver of revenue, still accounted for about 10% of Google’s $71 billion in advertising sales in the second quarter.

The business underpins much of the buying and selling of digital ads that fund websites and apps across the internet.

EU-US tensions

The ruling lands at a sensitive moment for EU–US relations.

President Donald Trump has frequently criticised Brussels for targeting American technology firms.

Google is also facing pressure in the United States, where the Department of Justice is expected to submit proposed remedies later on Friday in its separate ad-tech case, ahead of a Sept. 22 hearing.

The DOJ has previously suggested forcing Google to divest its Ad Manager platform.

The EU’s action follows a 2023 warning that Google had harmed online publishers by favouring its own ad exchange program, strengthening its grip on the digital ad supply chain.

Ribera’s predecessor, Margrethe Vestager, had argued that only a mandatory divestment could resolve the competition concerns.

Over her decade-long tenure, Vestager imposed more than €8 billion in fines on Google across three cases, though EU courts later annulled one and reduced another.

The latest penalty adds to a string of regulatory battles facing the company worldwide as authorities intensify scrutiny of the role of dominant digital platforms.

The post EU hits Google with $3.5B fine over ad-tech practices appeared first on Invezz

Investors are bailing on Advanced Micro Devices Inc (NASDAQ: AMD) this morning after its AI peer Broadcom Inc (NASDAQ: AVGO) reported blockbuster earnings for its fiscal third quarter.

Broadcom’s record-breaking results and bullish guidance sent ripples across semiconductor sector – also triggering investor rotation away from AMD shares on concerns of heightened competitive pressure.

Despite today’s pullback, AMD stock remains a lucrative investment in 2025. At the time of writing, it’s up roughly 90% versus its year-to-date low in early April.

Why is AMD stock slipping on Friday morning?

AMD’s recent earnings showed solid performance, but lacked the explosive AI upside investors are now demanding.

With Broadcom’s results highlighting sustained demand and margin durability in AI infrastructure, traders are reassessing their exposure to AMD shares.

The company’s AI chip strategy, focused on its MI300 series, is in early deployment stages only and hasn’t yet demonstrated the same scale or customer traction as Broadcom’s XPUs.

Moreover, AVGO’s dominance in AI networking – through its Tomahawk switches and custom interconnects – adds another layer of differentiation.

These components are critical to scaling artificial intelligence workloads, and Broadcom’s near-monopoly in this segment is drawing capital away from AMD stock, whose exposure is more GPU-centric and increasingly challenged by Nvidia’s entrenched lead.

Broadcom looks more appropriately valued than AMD shares

Broadcom’s valuation, while elevated, is now seen as more justified given its growth trajectory.

The company trades at over 50x forward earnings, but its AI revenue growth and EBITDA margins of 67% support the premium.

AMD shares, by contrast, trade at a similarly high multiple without the same level of visibility or margin strength – especially amid the ongoing tariff uncertainty.

This disparity is prompting a reallocation of capital among institutional investors, who are favoring Broadcom’s diversified artificial intelligence exposure over AMD’s narrower GPU play.

The sentiment shift is also visible in options flow and retail chatter, with Advanced Micro Devices seeing increased bearish positioning following Broadcom’s earnings release.

Experts warn that unless AMD can accelerate its AI roadmap and secure marquee wins – it risks falling behind in a market increasingly driven by infrastructure-scale deployments.

Should you buy the dip in AMD stock today?

AVGO earnings have done more than impress – they’ve redefined investor expectations for what AI-driven growth should look like in semiconductors.

For AMD stock, the challenge is now twofold: defend its GPU turf against Nvidia, and counter Broadcom’s rising dominance in custom silicon and networking.

As capital flows toward Broadcom’s diversified AI ecosystem, AMD finds itself in a tougher spot – one where strong execution alone may not be enough to regain investor favor.

What’s also worth mentioning is that AVGO stock currently pays a small dividend as well, which AMD shares lack.

All in all, while Advanced Micro Devices may not be a poor investment per se, Broadcom’s earnings suggest there may be better ways to invest in AI in the back half of 2025.

The post AMD stock: why is it taking a hit due to Broadcom’s strong earnings? appeared first on Invezz

The Ibovespa climbed more than 1% on Friday, setting a fresh intraday record above 142,000 points, after weaker-than-expected US labour data strengthened expectations of imminent Federal Reserve rate cuts.

InfoMoney reported that the benchmark index rose 1.60% to 143,248 points at 10:40 am in Brasília, after touching a new all-time high of 143,402 points earlier in the session.

The moves reflected renewed investor optimism that a softer US monetary stance will trigger capital flows back into emerging markets, with Brazil among the prime beneficiaries.

Payroll report sets the tone

The spike was sparked by the announcement of the much-watched US nonfarm payroll report.

The statistics showed that the US economy added 22,000 jobs in August, considerably below economists’ projection of 75,000 jobs.

The unemployment rate came in at 4.3%.

The poor employment data prompted a dip in Treasury rates, with the two-year note—a crucial barometer of rate expectations—falling 10 basis points to 3.489% shortly after its release.

Investors read the report as an indication that the US labour market is losing momentum, which strengthens the case for the Fed to begin relaxing monetary policy as early as September.

Global ripple effects

The prospect of US rate cuts is reshaping global capital flows, with analysts pointing out that lower Treasury yields make higher-yielding emerging markets like Brazil more attractive.

“We have a very positive combination for Brazil this morning,” said Bruna Sene, equity analyst at Rico, citing stronger risk appetite abroad, gains in European and US markets, and a weaker dollar.

She noted that the fall in the DXY index has bolstered the Brazilian real, adding momentum to local assets.

Sara Paixão, macroeconomics analyst at InvestSmart XP, said the slowdown in US job creation has strengthened market expectations for Fed cuts in September, October and December.

However, she cautioned that the pace and intensity of the easing cycle remain uncertain.

Room for the Ibovespa to climb further

The change in global monetary conditions provides room for further improvement for local markets.

According to Bruno Takeo, strategist for Potenza Capital, the Ibovespa can reach 150,000 points as of 2025, supported mainly by the interest rate differential and hardly due to Brazilian fundamentals.

The adjustment, he emphasised, is largely one of global capital allocation rather than one of Brazilian economic momentum.

On the other hand, the slightly above-expectation unemployment rate of 4.3% (up from 4.2%) remains at low levels based on historic standards and does not indicate an imminent recession, said RB Investimentos strategist Gustavo Cruz.

This number gives the Fed even more cover to reduce rates when lingering inflationary pressures still give them a reason to hold off, he said.

The post Brazil’s Ibovespa hits record highs as weak US jobs data fuels rate-cut bets appeared first on Invezz

Circle stock (NYSE: CRCL) slipped 8% on Friday, as investors digested the aftermath of its June IPO and a recent public offering that included secondary sales by insiders.

Despite posting strong Q2 revenue of $658 million, up 53% year-over-year, thanks to rising USDC circulation and strategic partnerships, the stock felt pressure from share dilution concerns and lingering volatility across the crypto sector.

Circle also reported a net loss of $482 million, largely driven by non-cash IPO-related charges, adding to investor caution.

The company’s upcoming blockchain project, Arc, intended to enhance stablecoin utility, faces added scrutiny in a market already navigating regulatory uncertainty and economic headwinds for digital assets.

What’s driving Circle stock decline?

The latest drop in Circle’s stock came after a public offering priced at $130, well below late August’s close near $139.

The deal included 2 million new Class A shares from the company and 8 million from existing shareholders, including insiders, cleared under a lock-up waiver from JPMorgan.

Investors quickly grew wary. The added supply stoked fears of dilution, leaving traders cautious and keeping pressure on the stock in the short term.

Circle’s shares took a hit even after a strong second-quarter showing.

Revenue jumped 54% year-over-year to $658 million, led by growing adoption of its USDC stablecoin. Reserve income, a key profit driver, rose 50% to $634 million, helped by a 90% increase in USDC circulation to $61.3 billion.

Still, investors grew nervous. The stock had surged earlier this summer, and the recent share sale only amplified concerns about dilution and whether the rally could last.

The market observers also point to regulatory scrutiny and swings in crypto sentiment as additional headwinds. Volatility in digital assets keeps traders cautious, leaving Circle’s valuation under pressure.

What analysts say?

Analysts are cautious on Circle Internet Group after the recent stock drop.

Most note the company’s solid revenue growth and leadership in stablecoins, but the share sale and ongoing crypto market volatility are keeping optimism in check.

Some see the offering as a way to boost liquidity and fund growth projects, including Circle’s planned Tier 1 blockchain, Arc, aimed at stable transaction fees.

Still, many warn the stock could feel pressure from near-term dilution until Circle proves it can sustain profitability.

Circle’s recent earnings have been volatile, with the last quarter showing a net loss, largely tied to costs from the public offering.

Analysts’ price targets vary, reflecting uncertainty in crypto markets, from conservative to moderately bullish.

Most recommend a careful approach. While Circle’s long-term growth story remains intact, investors are advised to watch regulatory developments and execution risks around blockchain projects and capital management before making new bets.

The post Circle stock tanks 8% today: here’s why CRCL is in steep decline appeared first on Invezz

The Global X NASDAQ 100 Covered Call ETF (QYLD) is struggling this year. QYLD has rallied to $16.7, up by 21% from its lowest level this year. 

Unlike other funds, it remains much lower than the year-to-date high of $17.6 and has had outflows in the last six consecutive weeks. Its net inflow this year was $495 million, bringing its total assets to over $8 billion. 

What is QYLD ETF and how it works

The Global X NASDAQ 100 Covered Call ETF is one of the biggest players in the covered call sector. Its goal is to generate substantial returns by tracking the Nasdaq 100 Index.

While top Nasdaq 100 Index ETFs provide a 1% return, the QYLD has a dividend yield of about 13%, making it popular among dividend investors.

The QYLD ETF uses a different approach to other covered call funds in the way it is designed. It is a passive fund that tracks the CBOE NASDAQ-100 BuyWrite V2 Index.

This index employs a strategy of holding all companies in the Nasdaq 100 Index, which is primarily composed of technology companies such as Apple, Nvidia, Microsoft, and Google. Historically, the Nasdaq 100 Index has been one of the best performers in the United States.

By investing in the Nasdaq 100, the fund aims to benefit from its strong performance over time. At the same time, it sells at-the-money (ATM) covered calls on 100% of the portfolio. A covered call involves owning an asset and then selling call options, collecting the premium, which it then distributes to investors.

The ETF benefits substantially during the highly volatile periods in the market as option premiums increase. However, the challenge is that the options premium caps the upside when the underlying asset is in a strong trajectory.

The QYLD ETF is often compared to the JPMorgan Nasdaq 100 Premium Equity ETF (JEPQ), which also aims to generate superior returns by leveraging the covered call strategy.

However, the two funds are different in that JEPQ is an active fund where JPMorgan’s experts select stocks in the Nasdaq 100 Index, while QYLD is a passive one.

The other difference is that QYLD sells ATM calls, while JEPQ sells out-of-the-market (OTM) calls that earn it a lower premium, while retaining more upside potential.

Is QYLD ETF a good investment?

For an investor interested in American technology companies, there are two main ways to go about it. One can invest in a fund that tracks the Nasdaq 100 Index, like QQQ and QQQM. These funds generate more returns, while giving a lesser dividend.

The other option is to invest in covered call ETFs like QYLD. While these funds generate a higher dividend income, the reality is that they are less profitable in the long term.

For example, the QYLD ETF has an expense ratio of 0.60%, higher than most passive funds. Also, it is taxed differently than other passive funds, adding to its higher costs. In a statement, the co-founder of NEOS, which runs similar funds said:

“The space is growing, and one of the things we always tell investors is do your homework. It’s very important to understand not only what you’re buying but what the tax implications behind it is.”

Most importantly, the fund’s total return is significantly smaller than that of other funds that track the Nasdaq 100.

For example, QYLD’s total return in the last three years was 44%, much lower than the Nasdaq 100’s 100% and JEPQ’s 73%. The same is happening this year as its total return is minus 0.37%, while the other two generated 12% and 6.50%, respectively.

The post QYLD ETF: Is this 13% yielding Nasdaq 100 Index fund a buy? appeared first on Invezz

Football economics have gone insane in past years. Normal fans are amazed. But the numbers no longer shock insiders.

Football clubs are now surpassing the billion mark in annual revenue. The English league is breaking transfer record after transfer record. Private equity groups, credit funds and sovereign wealth managers are circling the game as though it were infrastructure.

What looks like reckless spending from the stands is, in fact, the by-product of stable revenue growth, new financial rules, and the rise of private credit.

The truth is that the beautiful game has been industrialised. The cash is real, the risks are measurable, and the game has been reshaped into something investors can model.

Why money keeps pouring in

Back in the day, football clubs used to be loss-making hobbies for wealthy owners. Today they’ve essentially turned into global media and real estate businesses with reliable cash flows.

Deloitte’s 2025 Football Money League report shows average revenue of €560 million per club in the top 20, with 44% from commercial income, 38% from broadcast, and 18% from matchday.

Matchday income alone exceeded €2.1 billion, the highest on record. Real Madrid doubled matchday revenue to €248 million after opening its renovated Bernabéu, fuelled by new VIP seats and personal seat licences.

Half the clubs in Deloitte’s ranking are redeveloping stadiums. The logic is that a modern arena generates income year-round from concerts, hospitality and retail.

Broadcasting remains the bedrock for many teams, but the biggest clubs now depend more on commercial deals.

Sponsorships, retail, and brand licensing allow clubs like Tottenham and Manchester United to remain in the top 10 even when they miss the Champions League.

This is the structural gap between the “superclubs” and everyone else. For clubs ranked 11–20, 47% of income still comes from broadcasting. For the top 10, commercial dominates at 48%. The business models have diverged.

Private capital is the name of the (beautiful) game

According to Pitchbook, Private credit has become the main entry point for investors. Apollo lent Nottingham Forest €93 million in 2025, secured against its stadium, at an interest rate of 8.75% for three years. The private equity firm is now considering launching a $5 billion sports investment vehicle.

Oaktree provided financing to Inter Milan and ended up owning the club when the debt defaulted. Ares financed Chelsea and Lyon. Carlyle backed Atalanta.

These deals offer equity-like returns with downside protection. Loans are secured against stadiums or media rights, collateral that retains value regardless of whether the team qualifies for Europe. With reliable revenue flows and regulatory cost controls, clubs are attractive borrowers.

Equity investments are now structured as minority stakes. Jim Ratcliffe’s €5.8 billion valuation for Manchester United came through the purchase of 29% of the club. Barcelona sold 25% of future TV rights to Sixth Street.

Full control deals are rare, partly because owners want to retain influence, partly because regulators have sharpened their focus.

At the distressed end of the spectrum, lower-league takeovers still occur. Everton, Sampdoria and Saint-Étienne changed hands recently. Wrexham is the textbook case, which was bought for around €2.1 million in 2020. Its rumoured valuation has now surpassed €400 million thanks to promotion, celebrity ownership and global media exposure.

What the rules really mean

The wild west of football finance is gone. UEFA’s Financial Sustainability Regulations bite fully in the 2025/26 season.

Clubs must keep squad costs to 70% of revenue, limit losses to €60 million over three years, and pay bills within 90 days.

And the enforcement is serious. Chelsea received a record €31.1 million fine for historical breaches, although it was just a drop in the ocean for a club that wealthy.

Crystal Palace was barred from the Europa League because of an ownership conflict with Lyon, costing it around £20 million in lost revenue.

These rules are significant because they turn football cash flows into something predictable. Wage-to-revenue ratios are capped. Losses are capped. Payables are capped.

For lenders, this is covenant language they understand. While for investors, it means they can price risk with more confidence.

The regulations also entrench the advantages of the richest clubs. Teams already earning close to €1 billion annually can afford top squads without breaching the caps. At the same time, smaller teams cannot spend beyond their revenue base.

Why England dominates

The Premier League is in a different league financially. Deloitte puts combined revenue for its 20 clubs at £6.6 billion in 2023/24, rising to £6.9 billion this season.

International broadcasting deals in Asia, the Middle East and North Africa are driving the growth. From 2026/27, the league will take media production in-house for international rights, further professionalising its content business.

That scale explains the transfer spending. The 2024/2025 champions, Liverpool, spent more than £200 million on two players in summer 2025. The total Premier League outlay exceeded the other four big leagues combined.

Contrast that with France. Domestic broadcast rights collapsed after the DAZN deal was terminated. Ligue 1 revenue has fallen to less than half its peak. The league is launching its own streaming service, Ligue 1+, for the 2025/26 season.

This is a test of whether a direct-to-consumer model can replace the old broadcaster-led system. For now, it means French clubs face a deep income trough, precisely when financial rules are getting stricter.

Meanwhile, Germany is limited by its 50+1 ownership rule, which caps outside investor control. Twice, the league has rejected proposals for private equity investment.

Spain is more open but more conservative, with broadcast rights and tax regimes shaping the financial landscape.

Why the spending isn’t as crazy as it looks

To outsiders, nine-figure transfer fees appear reckless. But they sit on top of revenue streams that are bigger and more reliable than ever.

When Real Madrid clears €1 billion and the Premier League as a whole approaches €7 billion, paying €125 million for a striker becomes a matter of cash-flow allocation.

Stadium economics reinforce this. Tottenham lifted average matchday spend per fan from £1.50 to £15 after moving into its new ground. Everton expects the same from its new stadium.

These venues behave like algorithms: they convert global attention into local spend, whether through football, concerts, or sponsorship activation.

Investors have learned that the pitch is no longer the whole story. Football clubs are platforms that monetise attention through buildings and content.

Publicly listed clubs such as Manchester United, Juventus and Borussia Dortmund may attract attention but are rarely compelling financial investments. For retail investors, they are nothing more than speculative plays on prestige brands.

Private credit is the natural fit, turning those cash flows into secured, predictable returns. Minority equity adds brand exposure, while distressed control deals offer asymmetric upside.

The regulatory framework acts as the rulebook, defining the boundaries for all players in the system.

The post How football turned into a financial machine appeared first on Invezz