Brera Holdings PLC – Public Access to Professional Sports

Brera Redefines Professional Sports Ownership in the Stock Market

DUBLIN, Ireland and MILAN, Italy, Feb. 12, 2024 (GLOBE NEWSWIRE) -- Brera Holdings PLC (“Brera Holdings”, “Brera” or the “Company”) (Nasdaq: BREA), which one year ago became the first Italian football team to IPO on Nasdaq, today describes the benefits of being a publicly-traded multi-club ownership (“MCO”) company for global professional football (American soccer), which is democratizing sports club ownership like never before. This innovative approach allows fans and investors alike to hold a stake in a diversified portfolio of professional sports clubs, marking a shift from the exclusive realm of billionaire investors to the accessible domain of the public markets.

Through its Nasdaq-listed shares, Brera Holdings offers shareholders the unique opportunity to access the sports industry's lucrative aspects which were previously out of reach to retail investors. The Company's strategic execution of the MCO model is designed to 1) enhance operational efficiencies and resource allocation across its portfolio, 2) broaden and deepen revenue sources, and 3) leverage the pronounced valuation gap between top-tier and second-tier soccer clubs, aiming to deliver superior returns to its investors.

Brera's acquisition strategy is as ambitious as it is strategic, targeting men's soccer clubs in varied locales, from the historical Brera FC in Milan, Italy to newer ventures in Mozambique, Mongolia and North Macedonia. This not only taps into soccer's universal appeal but also opens up a myriad of potential revenue avenues through tournament wins, player transfer fees, and sponsorship deals, among others.

A pivotal element of Brera Holdings' approach is its planned exploitation of inefficiencies within the lower echelons of the soccer league system. The dynamics of these markets—characterized by limited competition and sometimes substantial entry barriers—present ripe opportunities for above-average returns. Brera specifically targets clubs at a crossroads of financial and competitive disparity, setting the stage for potentially transformative success and promotion to higher leagues without necessitating hefty financial inputs.

The correlation—or lack thereof—between spending and success in these leagues is telling. While the financial clout is closely tied to performance in the upper tiers (evidenced by an R squared (Coefficient of Determination) of approximately .48 and higher), the scenario dramatically shifts in Italy’s Serie B and similar leagues, where the correlation plummets (R squared of about .15 and lower) Source: Capology. This discrepancy underscores a critical insight: strategic investments in these lower-tier leagues can yield considerable returns, independent of significant financial outlays.