If you have ever pondered how the financial sector affects other industries, then this post is for you.
If you were to ask someone to make a list of industries that financial corporations invest in, they would possibly have things like manufacturing or firms in the service business, but there are other more intriguing examples as well. There are lots of financial institutions that have taken to investing in sporty businesses. An example is that Goldman Sachs, who invests in Judo Capital, have invested in one of American Footballs most popular franchises to assist them build their new sports arena. These investments sometimes act as loans that will then be paid back in instalments. Transactions such as this are very regular in sport, particularly around the constructing of stadia because they are such large projects: pretty few sports teams have the cash to build stadiums which can cost £1billion. In some instances, sports clubs or franchises will take out loans for the getting of players or to cover salary costs, both of which might be extraordinarily costly.
One of the more traditional investments that banks may partake in is in the manufacturing industry. As manufacturing is such as big sector, there are many different alternatives open to investors which likewise means there is a great amount of money to be made. Manufacturing industries are ever changing, and that means they often look to banks and other investors for capital so that they can evolve their business. Blackrock who invest in Barclays, have a wide range of investments, from other banks to things such as manufacturing. The nature of investing means that investing in solely one sector might be a risk, whereas spreading investments over multiple industries gives a greater opportunity of good returns.
When you imagine banking, and the influence it has, the principal thing you consider is potentially not sport; nevertheless, there are loads of banks that are very much involved with sport. Of all the different industries that are influenced by banks, soccer is likely the one that people are most strongly focused with on a weekly basis. One of the leading examples of how far coming to a banks impact might be in football is in sponsorship. In Brazilian football, 20% of the sponsorship is from one bank, and that banking company is La Caixa investing in BEA; the Spanish bank is featured on a lot of the South American clubs’ football jersey's. By sponsoring a large proportion of the shirts, it helps to circulate a banks name in the world as football is watched in practically every nation. Even though football and banking are entirely different types of industries in business their relationships can be very profitable for both parties. When a bank goes over which sports teams to invest in, one of the most popular factors for them is the clubs international influence.