Wednesday, 12 May 2021

Visual Capitalist

Visual Capitalist


Ranked: The Top 10 Football Clubs by Market Value

Posted: 12 May 2021 02:07 PM PDT

Ranked: The Top 10 Football Clubs by Market Value

The Briefing

  • The top 10 football clubs hold a combined $36 billion in market value
  • English clubs represent 6 of the 10 top football clubs

The Top 10 Football Clubs by Market Value

In the world of football, the stakes are rising due to the amount of dollars injected into the game. In light of the rapid rise and fall of the European Super League (ESL), this graphic covers the top 10 football clubs by market value.

Today, the top 10 clubs are collectively worth $36 billion and bring in over $6 billion in annual revenues.

Football ClubMarket Value ($M)Revenue ($M)
Barcelona$4,760$792
Real Madrid$4,750$792
Bayern Munich$4,220$703
Manchester United$4,200$643
Liverpool$4,100$619
Manchester City$4,000$609
Chelsea$3,200$520
Arsenal$2,800$430
PSG$2,500$599
Tottenham$2,300$494

Football clubs have witnessed more money being thrown into the game, partly because of the licensing and streaming deals behind the curtain. Big entities have entered the space like Amazon, Disney through ESPN, and DAZN, which has been regarded as the Netflix of sport.

From an audience standpoint, business interest in the sport is justified. In the last World Cup final, 517 million tuned in, compared to 160 million for the Super Bowl during the same year.

More Money in the Game

It's not just the clubs that are seeing more money trickle down. Both fees for agents and player transfers have soared. From 2014 to 2019, agent fees grew from $241 million to $653 million. Similarly, transfer fees grew from $2.6 billion to $7.3 billion between 2012-2019.

YearPlayer Transfer Fees ($M)Agent Fees ($M)
2019$7,350$653
2018$6,940$548
2017$6,290$447
2016$4,720$387
2015$4,130$297
2014$4,020$241

The COVID-19 Impact

Like any sport, football has suffered from the lack of social gatherings for the better part of a year. Matchday revenues, which represent sales generated in the stadium, have dried up. Prior to the pandemic, the top 10 clubs generated approximately 20% of their sales from matchday.

Fortunately, it appears supporters will be re-gathering sooner rather than later, Wembley Stadium welcomed 8,000 fans in a recent showdown between Manchester City and Tottenham on April 25th.

Where does this data come from?

Source: Forbes
Notes: Football clubs data is as of 2020

The post Ranked: The Top 10 Football Clubs by Market Value appeared first on Visual Capitalist.

Europe Leads in EV Sales, but for How Long?

Posted: 12 May 2021 02:00 PM PDT

2020 EV Sales

The Briefing

  • Europe and China were the largest electric vehicle (EV) markets by a wide margin in 2020
  • EV adoption in the U.S. is expected to rise as the Biden administration works to increase industry incentives

Europe Leads in EV Sales, but for How Long?

Global sales of electric vehicles (EVs) and plug-in hybrids (PHEV) surpassed 3 million for the first time in 2020, despite the economic headwinds imposed by COVID-19.

This visualization presents a geographical breakdown of these sales, revealing that over 80% were made in either Europe or China.

CountryEV and Plug-in Hybrid Sales (2020) Population (2020) 
European Union (EU)1,390,000747.6M
China1,330,0001.4B
U.S.328,000331.0M
South Korea52,00051.3M
Canada47,00037.7M
Japan31,000126.5M
Taiwan7,00023.8M
Other43,000-

The EU was the largest market by a margin of 60,000 cars, but given China's larger population, it's likely the two will switch places in the near future.

Government Incentives Play a Key Role

Government incentives have boosted the transition to battery power in recent years. For example, many countries offer a buyer rebate, which effectively reduces the price a consumer pays for an EV or PHEV.

In Germany, buyers can receive a subsidy of $10,800 when purchasing an EV with a list price of less than $48,000. China also offers a rebate program, where buyers of an EV with a travel range of at least 186 miles can receive a subsidy of $2,500.

Consumers should be aware that these incentives are likely to diminish over time, especially as EVs become more mainstream. In January 2021, the Chinese government announced it would reduce its existing subsidies by 20%.

Will EV Sales in America Catch Up?

In a 2020 survey, 71% of U.S. drivers said they were interested in getting an EV—so why are sales so far behind Europe and China?

In that same survey, 50% of drivers cited a lack of public charging stations as the main factor for preventing them from buying an EV. Concerns like these have led the Biden administration to propose a more aggressive EV strategy, which includes the installation of at least 500,000 charging stations by 2030.

»If you found this post interesting, you might enjoy this graphic that compares electric vehicle highway ranges

Where does this data come from?

Source: EV Volumes, Worldometer
Notes: Final figures rounded

The post Europe Leads in EV Sales, but for How Long? appeared first on Visual Capitalist.

Fact Check: The Truth Behind Five ESG Myths

Posted: 12 May 2021 10:14 AM PDT

Fact Checking ESG Myths

Fact Check: The Truth Behind 5 ESG Myths

In 2021, investors continue to embrace environmental, social, and governance (ESG) investments at record levels.

In the first quarter of 2021, global ESG fund inflows outpaced the last four consecutive quarters, reaching $2 trillion. But while ESG gains rapid momentum, the CFA Institute shows that 33% of professional investors surveyed feel they have insufficient knowledge for considering ESG issues.

To help investors understand this growing trend, this infographic from MSCI helps provide a fact check on five common ESG myths.

1. "ESG Comes at the Expense of Investment Performance"

Fact Check: Not necessarily

Worldwide, ESG-focused companies have not only seen higher returns, but stronger earnings growth and dividends.

Returns by ESG RatingsEarnings Growth*Active Return**Dividends and Buybacks
Top tier2.89%1.31%0.28%
Middle tier1.35%0.12%-0.02%
Bottom tier-9.22%-1.25%-0.05%

Source: MSCI ESG Research LLC (Dec, 2020)
*Contribution of earnings growth and dividends/buybacks to active return
**Active return is the additional gain or loss compared to it respective benchmark

In fact, a separate study from the CFA Institute shows that 35% of investment professionals invest in ESG to improve their financial returns.

2. "Investors Talk About ESG But Don't Invest In It"

Fact Check: False

Global ESG assets under management (AUM) in ETFs have grown from $6 billion in 2015 to $150 billion in 2020. In just five years, ESG AUM have accelerated 25 times.

Today, money managers are focusing on the following top five issues:

Top ESG IssuesAssets AffectedGrowth in Assets Affected (2018-2020)
Climate change / carbon emissions $4.18T39%
Anti-corruption$2.44T10%
Board issues$2.39T66%
Sustainable natural resources / agriculture$2.38T81%
Executive pay$2.22T122%

Source: US SIF Foundation (Nov, 2020)

Meanwhile, over 1,500 shareholder resolutions focused on ESG-related matters were filed between 2018-2020. Not only are investors turning to ESG assets, but they are placing higher demands on corporate responsibility.

3. "ESG Investment Strategies Eliminate Entire Sectors"

Fact Check: Not necessarily

First, not all ESG investment approaches are exclusionary.

For instance, in North America roughly 51% of ESG ETFs used an ESG integration approach as of Dec. 31, 2020. In an ESG integration approach, ESG risks and opportunities are analyzed with the goal to support long-term returns.

By comparison, values and screens approaches, which accounted for over 22% of ESG ETFs in North America may screen out specific business activities, such as alcohol or tobacco, or sectors such as oil & gas.

Percentage of ESG TypeIntegrationValues & ScreensThematicImpact
North America50.9%22.5%20.7%5.9%
Asia57.8%34.6%3.8%3.8%
Europe30.8%60.6%8.6%0.0%
Australia28.6%71.4%0.0%0.0%

Source: Refinitiv/Lipper and MSCI ESG Research LLC as of Dec 31, 2020 (MSCI Feb, 2021)

Second, companies are assessed on a sector-specific basis where ESG leaders and laggards are identified within each sector in comparison to peers. In other words, ESG doesn't mean eliminating exposure to entire sectors. Instead, investors can choose from a range of companies based on their ESG ratings quality.

4. "ESG Investing Is Only For Millennials"

Fact Check: False

Although ESG is popular among millennials, ESG investing is being driven by the entire investor population. In 2019, one study finds that 85% of the general population expressed interest in ESG investing.

Interest in Sustainable InvestingGeneral PopulationMillennials
201985%95%
201571%84%

Source: US SIF Foundation (Nov, 2020)

Sustainable investing goes far beyond millennials—ESG disclosures are quickly becoming requirements for key industry participants, such as institutional investors and listed companies.

5. "ESG Investing is Here to Stay"

Fact Check: True

Climbing 28% in 2020 alone, over 3,000 signatories have committed to the UN Principles of Responsible Investment. As of the first quarter of 2021, 313 global organizations and 33 asset owners have been newly added.

Growth of UN PRINumber of Signatories*AUM Represented
20203,038$103.4T
20192,370$86.3T

Source: UN PRI
*As of Mar, 2020

Central to ESG's growth is the availability of ESG investments. ESG investing has become more widely accessible—which wasn't always the case. Over the last decade, the global number of ESG ETFs has grown from 46 to 497.

Why the Facts Matter

As ESG investments continue to play an even greater role in investor portfolios, it’s important to focus on data rather than prevailing ESG myths that are not backed by fact.

Given the recent momentum in investment returns and ESG adoption, data-driven evidence empowers investors to build more sustainable portfolios that better align with their investment objectives.

The post Fact Check: The Truth Behind Five ESG Myths appeared first on Visual Capitalist.

The Golden State: A Closer Look at Mining in California

Posted: 12 May 2021 06:21 AM PDT

The following content is sponsored by KORE Mining.

The Golden State: A Closer Look at Mining in California

California is known as the Golden State for its history of gold production in the 19th and 20th centuries, and the mining industry continues to build on its rich history to this day.

With roughly $4.7 billion worth of non-fuel minerals produced in 2020, the Golden State is one of the largest states for mining and the sole source of rare earth elements in the United States.

The above infographic from KORE Mining highlights how California earned its famous nickname, and how its mining industry continues to shine today, just like its gold.

How the Golden State Found its Name

Back in the late 1770s, during the period of Spanish colonization in California, a group of Spaniards discovered gold in Imperial County, and small-scale mining began. However, it was not until 1848 that gold mining really kicked off.

In 1848, James Marshall—a carpenter and sawmill operator—went down to the American River in Coloma to inspect progress on a sawmill under construction, and saw something that defined the future of California's economy.

“My eye was caught by something shining in the bottom of the ditch. . . . I reached my hand down and picked it up; it made my heart thump, for I was certain it was gold. . . Then I saw another.”

— James Marshall via Library of Congress.

As word spread, thousands of prospectors and gold-seekers made their way to California in search of their own shiny nuggets in an event now known as the Gold Rush. In fact, the influx of migrants was so large that they came to be known as the "forty-niners", named after the year they started arriving. By 1855, miners had extracted over 12 million ounces of gold, and the Gold Rush neared its end.

Over a century later, in 1968, "the Golden State" became California's official nickname for both its prolific gold discoveries and golden poppy fields. By this time, most historical gold mines had ceased operations, but for California's mining industry, it was just the beginning.

Mining in California Today

Although California is well-known for Hollywood and Silicon Valley, it remains one of the most important states for mining in the country.

As of 2018, there were 739 mines in California producing 23 different commodities, from gold and rare earths to boron and construction minerals. Due to the industry’s size and significance, mining plays an important role in the Golden State's economy.

In 2020, California's mining industry generated:

  • $7.3 billion in labor income
  • $13.6 billion in GDP
  • 99,120 direct and indirect jobs

Mining companies in California benefit from access to clean energy, infrastructure, and well-established transport networks. Additionally, the Golden State is also known for its high reclamation standards, which ensure that mining sites are returned to their original undisturbed states, reducing the environmental impact of mines.

The Future of Gold in California: Imperial County

Imperial County has a place in history with California's first known gold discovery in the 1770s. Its golden history continues today with KORE's Imperial Project, one of the largest gold discoveries in California, and the Mesquite Mine—California's largest gold mine—which has been producing gold since 1985.

With its rich history, active mining industry, and up-and-coming gold discoveries, California will always remain the Golden State, and Imperial County has the potential to carry forward its legacy.

The post The Golden State: A Closer Look at Mining in California appeared first on Visual Capitalist.

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