Brera Holdings Analysis: Valuations Soar in Italy’s Serie B Pro Football League Amid Strong Performances and Long-Term Development in 2024/25 Season

Rhea-AI Summary

Brera Holdings (Nasdaq: BREA) analyzed data showing significant market value increases in Italian Serie B clubs and players from June to November 2024. Notable valuations include Pisa Sporting Club (+68.6% to €46.1M), Carrarese Calcio (+151% to €13.18M), and SS Juve Stabia (+146.7% to €10.43M). Several players saw remarkable value increases, including Rachid Kouda (+338% to €3.5M) and Francesco Pio Esposito (+67% to €5M). The analysis comes as Brera Holdings pursues its September 2024 letter of intent to acquire a Serie B club.

Positive

• Multiple Serie B clubs showed significant valuation increases: Pisa (+68.6%), Carrarese (+151%), Juve Stabia (+146.7%)
• Notable player value appreciation: Rachid Kouda (+338%), Francesco Esposito (+67%), Tommaso Berti (+200%)
• Spezia Calcio recorded 11.80% roster valuation increase

Negative

• Some clubs like UC Sampdoria and US Salernitana 1919 faced significant valuation declines
• Competitive and financial challenges affecting some Serie B clubs' valuations

Insights

Market Research Analyst

The surge in Serie B club valuations presents both opportunities and risks. Notable increases like 68.6% for Pisa and 151% for Carrarese demonstrate strong market dynamics, but significant valuation declines in established clubs like UC Sampdoria highlight the volatile nature of football investments. The data reveals a clear pattern where clubs focusing on youth development and talent nurturing are seeing better valuation growth.

The player market shows remarkable appreciation, with standouts like Rachid Kouda seeing a 338% value increase to €3.5M. This trend suggests a healthy ecosystem for player development and potential ROI through transfer fees. However, BREA's strategy to acquire a Serie B club carries execution risks given the league's competitive dynamics and financial pressures.

Financial Analyst

The valuation metrics in Serie B show a bifurcated market - while some clubs are experiencing triple-digit percentage growth, others face significant devaluation. This creates potential acquisition opportunities but requires careful due diligence. The focus should be on clubs with strong youth academies and development infrastructure, as these assets provide sustainable value creation through player development and potential transfer revenues.

The financial model appears to be shifting from traditional revenue streams to talent development and trading. With players like Francesco Pio Esposito increasing in value by 67% to €5M, there's clear evidence of value creation through player development. However, investors should note that these gains are paper valuations until realized through actual transfers.

Brera Holdings PLC analyzed data showing a surge in Italian Serie B club and player market values, expressing optimism about acquiring a Serie B club amidst these positive trends.

MILAN, Italy, Nov. 18, 2024 (GLOBE NEWSWIRE) -- Brera Holdings PLC (“Brera Holdings”) (Nasdaq: BREA), an Ireland-based, international holding company focused on expanding its global portfolio of men's and women's sports clubs through a multi-club ownership approach, analyzed data from Transfermarkt, which shows that, from June 15, 2024, to November 12, 2024 (the day Brera Holdings accessed the data), the market values of Italian Serie B clubs and players have surged. However, the 2024/25 season has also exposed challenges for certain teams, with declines in club valuations reflecting the competitive and financial hurdles faced by Serie B clubs in Italy. Given that Brera Holdings announced in September 2024 that it signed an exclusive letter of intent to acquire an Italian Serie B club, it is excited about the overall positive trends across the league.

(Data retrieved on November 12, 2024 from Transfermarkt)

Top Team Valuations

As of November 12, 2024, several teams in Serie B have seen notable changes in their roster valuations:

• Pisa Sporting Club saw a 68.6% increase, with their valuation rising from €27.35M in June 2024 to €46.1M in November 2024.
• Carrarese Calcio 1908 recorded a 151% jump, going from €5.25M to €13.18M, highlighting their promising future after a strong start to the season.
• SS Juve Stabia, newly promoted from Serie C, saw their valuation increase by 146.7%, from €4.23M to €10.43M, underlining the excitement around their ascent.
• Cesena FC also performed well with a 143.4% increase, climbing from €9.4M to €22.88M, driven by their strong performance that currently places them 4th in Serie B standings, behind Pisa Sporting Club, US Sassuolo, and Spezia Calcio.

Other clubs like Modena FC, Spezia Calcio, and Brescia Calcio have shown consistent growth, while teams such as UC Sampdoria and US Salernitana 1919 have faced significant club valuation declines, reflecting their struggles on and off the pitch.

Emphasis on Long-Term Development

While short-term success can drive quick increases in valuations, long-term player development remains vital.

“Clubs like Brescia Calcio, known for their storied youth academy, continue to produce top-tier talent, ensuring sustainable growth,” commented Pierre Galoppi, CEO of Brera Holdings. “Their focus on youth development is proving to be a cornerstone of long-term success.”

Top Rising Players in Serie B

Several players have seen significant increases in their market value this season, which Brera Holdings believes is driven by standout performances on the pitch. Among the most notable are:

• Rachid Kouda (Spezia Calcio): From €0.8M to €3.5M (+338%) – A standout in midfield, impressing top scouts with his technical skills and versatility.
• Francesco Pio Esposito (Spezia Calcio): From €2M to €5M (+67%) – The 18-year-old forward continues to shine as one of Serie B's top young strikers.
• Tommaso Berti (Cesena FC): From €1M to €3M (+200%) – A key figure in Cesena’s rise within Serie B, showcasing creativity and composure in midfield.
  

Other Standout Performers

Beyond these top risers, Brera Holdings believes several other players have also made significant impacts this season, with their valuations increasing by impressive margins. Simone Canestrelli (Pisa Sporting Club), a key figure in defense, Nicholas Bonfanti (Modena FC), a clinical striker, and Matteo Tramoni (Pisa Sporting Club), a creative attacking force, have all contributed to their teams' success. Gennaro Borrelli (Brescia Calcio), a consistent goal scorer, and Nicolo Bertola and Salvatore Esposito (Spezia Calcio), who have excelled in defense and midfield, have also seen their values rise significantly, reflecting their growing influence in Serie B this season.

A Competitive Landscape

According to Brera Holdings, with teams like Cesena FC in 4^th place in the Serie B league standings and SS Juve Stabia performing well in 9th place, Serie B continues to offer a competitive environment. Brera Holdings has identified Spezia Calcio as a key hub for player development, demonstrating a balanced approach to nurturing young talent while maintaining consistent performance, resulting in an 11.80% increase in their roster valuation.

Serie B’s Role in Talent Development

Brera Holdings believes that the ongoing trends from June 15, 2024, to November 12, 2024, highlight Serie B’s growing importance as a developmental league, where young talent is refined for success in Serie A and beyond. With standout players like Kouda, Esposito, and Berti, the league continues to nurture the next generation of football stars while providing a competitive platform for growth.

ABOUT BRERA HOLDINGS PLC

Brera Holdings PLC (Nasdaq: BREA) is dedicated to expanding its social impact football business by developing a global portfolio of emerging football and sports clubs. Building on the legacy of Brera FC, which it acquired in 2022, the Company aims to create opportunities for tournament prizes, sponsorships, and professional consulting services. Brera FC, recognized as "The Third Team of Milan," has been crafting an alternative football legacy since its founding in 2000. The club also organizes the FENIX Trophy, a nonprofessional pan-European tournament acknowledged by UEFA. This tournament, which has been referred to as "the Champions League for amateurs" by BBC Sport, has garnered significant media coverage, including from ESPN.

In its efforts to broaden its reach, Brera expanded into Africa in March 2023 by establishing Brera Tchumene FC in Mozambique, which quickly rose to the First Division after winning its post-season tournament. In April 2023, the Company acquired a 90% stake in the North Macedonian first-division team Fudbalski Klub Akademija Pandev, now known as Brera Strumica FC. Additionally, in June 2023, Brera made a strategic investment in Manchester United PLC, realizing a 74% gain. The Company has further diversified its portfolio by acquiring a majority stake in UYBA Volley, an Italian women's professional volleyball team, in July 2023, assuming control of Bayanzurkh Sporting Ilch FC, a Mongolian National Premier League team, which became Brera Ilch FC, in September 2023, and establishing a joint stock company for the North Macedonian women's football club Tiverija Strumica, now known as Brera Tiverija FC, a wholly-owned subsidiary of Brera Strumica FC, in June 2024.

Most recently, Brera announced plans to acquire an Italian Serie B club, having signed an exclusive letter of intent with a prospective club, and is proceeding with due diligence. With a focus on bottom-up value creation, innovation-driven growth, and socially impactful outcomes, Brera Holdings endeavors to position itself as a forward-thinking player in the global sports landscape. For more information, visit www.breraholdings.com.

Cautionary Note Regarding Forward-Looking Statements

This press release contains forward-looking statements that are subject to various risks and uncertainties. Such statements include statements regarding the Company's ability to grow its business and other statements that are not historical facts, including statements which may be accompanied by the words "intends," "may," "will," "plans," "expects," "anticipates," "projects," "predicts," "estimates," "aims," "believes," "hopes," "potential" or similar words. Actual results could differ materially from those described in these forward-looking statements due to a number of factors, including without limitation, the Company's ability to continue as a going concern, the popularity and/or competitive success of the Company's acquired football and other sports teams, the Company's ability to attract players and staff for acquired clubs, unsuccessful acquisitions or other strategic transactions, the possibility of a decline in the popularity of football or other sports, the Company's ability to expand its fanbase, sponsors and commercial partners, general economic conditions, and other risk factors detailed in the Company's filings with the SEC. The forward-looking statements contained in this press release are made as of the date of this press release, and the Company does not undertake any responsibility to update such forward-looking statements except in accordance with applicable law.

Company Contact Information:
Pierre Galoppi, Chief Executive Officer, Brera Holdings PLC
Email: pierre@breraholdings.com

Investor Relations Inquiries:
Skyline Corporate Communications Group, LLC
Scott Powell, President
1177 Avenue of the Americas, 5th Floor
New York, New York 10036
Office: (646) 893-5835
Email: info@skylineccg.com

Photos accompanying this announcement are available at
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FAQ

What are the top performing Serie B clubs in terms of valuation growth for BREA's potential acquisition?

The top performing clubs include Pisa Sporting Club (+68.6% to €46.1M), Carrarese Calcio (+151% to €13.18M), and SS Juve Stabia (+146.7% to €10.43M) from June to November 2024.

Which Serie B players showed the highest market value increases in 2024?

Rachid Kouda of Spezia Calcio showed the highest increase (+338% to €3.5M), followed by Tommaso Berti (+200% to €3M) and Francesco Pio Esposito (+67% to €5M).

When did Brera Holdings (BREA) announce its intent to acquire a Serie B club?

Brera Holdings announced signing an exclusive letter of intent to acquire an Italian Serie B club in September 2024.