Minority stakeholder in Dortmund, Lyon and Ajax: Earnings outlook for football clubs remains positive for the long-term despite impact of coronavirus

14 July 2020

Photo: PA Images "If Dortmund don't sell [Erling] Haaland for close to €100 million this year they will probably do it next year. That will recover at some point," said Luis García Álvarez, an equity portfolio manager of MAPFRE AM Behavioural Fund, who earlier this year picked up a minority position in Dortmund due to its lower value reduced by the coronavirus pandemic.

The coronavirus pandemic has contributed to the undervaluing of football clubs across Europe.

Luis García Álvarez oversees the MAPFRE AM Behavioral Fund, who in March acquired a stake in Dortmund thanks to their lower valuation, adding the club to a portfolio which also includes Lyon and Ajax.

As in other industries, those with strong management and a healthy balance sheet will come out on top after the crisis.

Generally, a psychological barrier is preventing investors from buying into football despite its huge potential for growth.

Emil Gjerding Nielson nielson@offthepitch.com

The coronavirus pandemic has caused most of football's stakeholders to dampen their optimism for the future growth of the world's most popular sport. Over this season and the next, clubs in Europe's top divisions are expected to lose out on collective revenue of €4 billion, according to a report by the European Club Association (ECA), and EBITDA of €3.1 billion, a sign of Covid-19's lasting impact.

The business itself continues to be really good

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