Thomas Cook

25th September 2019

Are Sports Direct about to shake up the UK Football Centres industry?

Sports Direct have recently made an offer to purchase Goals Soccer Centres for just under £4million.

Sports Direct, who are the largest shareholder in Goals with almost 19% stake, made the offer ahead of their expected delisting from the Stockmarket next week. Goals had put itself up for sale after a £12million tax accounting scandal.

Retail giant Sports Direct may make an impact on the Soccer Centres industry with the proposed acquisition. Plimsoll’s analysis of Goals Soccer Centres shows that there could be a substantial difference between the company’s current value and potential future value. The Soccer Centres industry analysis also shows that over 50% of soccer centre companies are in danger and the industry is struggling for growth.

Because of this, a giant such as Sports Direct could begin an acquisition process to increase marketshare in the industry and make improvements to companies like Goals, changing the dynamic of the industry entirely.

There are in fact 5 other companies in the Soccer Centres industry that have been rated as ‘highly attractive’ using Plimsoll’s unique acquisition rating system, which could make excellent additions to a suiters portfolio in their quest to expand marketshare in an industry struggling for growth. There are also 2 companies which appear to be real up and coming threats.

declining growth in the soccer centre industry graph

With Soccer Centres being such a ‘boutique’ industry, there may be some big changes and acquisition activity ahead.

 To speak to one of our specialists about your industry analysis, or to find out more call 01642 626470