In the News
World Cup Winners and Losers "Share Price" Student Activity
14th June 2018
Here is an idea for a World Cup-related activity to help students to get to grips with the stock market and share prices, and to practise some calculation skills as well.
This is based on a market report produced by Fidelity International, a group of investment advisors, for their clients who might be looking to buy shares in some of the businesses which might benefit from a World Cup boost to their revenues, and therefore their share value.
How it works
The list below gives a range of those businesses, along with some idea of why they might benefit from the World Cup – you may well be able to add some more suggestions, as long as they are public limited companies.
Assign one business to each student in the class, and ask them to use the website of the London Stock Exchange to check the current price at which they could buy one of their shares.
Keep a log of the share price for each business and student, and ask the students to look out for any news items which they think might affect the share price – whether relevant to football or not. For example, they might consider news such as official data out this week confirming the UK’s average earnings adjusted for inflation continue to rise, as the effects of the removal of caps on public sector pay, the highest levels of employment since the 1970s and moderating inflation start to take hold.
In class, make a weekly check of how the share price is moving; the students should calculate the percentage change in value of their share, and keep a log of this.
You could extend this to each of them calculating an index value, based on the initial price as the base figure.
After the World Cup final on Sunday 15th July, check the ‘sell’ price for each share to see which student would have made the biggest gains on the Stock Market – you could use both the money price and the percentage change for this, and you could offer a prize if that seems appropriate!
Suggested shares to watch
Sports Direct; JD Sports Fashion
- Both more than ready to supply all the replica team shirts and sports kit any soccer fan might wish for.
Nike plc; Adidas AG
- Football boots similar to those worn by the likes of Ronaldo and Neymar are now available for the well-heeled. Adidas also sponsors FIFA so will be prominent at the World Cup
ITV
- Advertising slots should command premium rates during key World Cup games
WH Smith
- Now with 282 units internationally – including eight recently won at Madrid Airport – this is a business with the capacity to tap into the footballing ardour of more than just English fans
Greene King plc; Molson Coors, Diageo; Heineken
- Brewer’s - the British Beer and Pub Association thinks the World Cup could be worth an additional £42 million to its industry during the early group stages alone.
Enterprise Inns; Punch Taverns; JD Wetherspoons
- Owners of the biggest groups of pubs and inns in the UK.
Just Eat; Domino's Pizza
- Providing sustenance for those who decide to stay home to watch
Dixons Carphone
- Might benefit if consumers decide that they need a new tv
Paddy Power Betfair; GVC Holdings (owner of Ladbrokes Coral)
- Online betting via smartphones is likely to feature strongly
General Motors Company – owners of Vauxhall cars
- Vauxhall are sponsors of the England team
Gazprom PAO; Visa Inc; Hyundai Motor Cars; Coca Cola
- All major sponsors of FIFA for the World Cup, so their names will be prominently displayed throughout the competition
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