Sports venture sounds like a matter of the heart, say experts

Investment company’s plans attracting scepticism

Sports shares invested in more with the heart than the head? (Photo: iStock) Sports shares invested in more with the heart than the head? (Photo: iStock)
April 10th, 2015 1:43 pm| by Philip Tees

Investment analysts are sceptical about the investability of a new sports venture being formed by the capital investment company Hellerup Finans (HF).

HF, which holds a controlling stake in Danish First Division football team Lyngby Boldklub, recently made a major acquisition in the handball club Viborg HK, and it plans to acquire similar stakes in ice hockey, basketball and cycling teams and to use them as a marketing tool to generate business.

The heart not the head
Per Hansen, as investment economist at the investment management company Nordnet, was unequivocal in his assessment.

“If you ask me if buying shares in sport clubs makes sense from an investment point of view, I would say no, definitely not. Not at all,” he told Børsen.

This was echoed by Johnny Madsen, the head of investments at the fund management company Dansk Formue- & Investeringspleje.

“Sports shares are generally invested in more with the heart than the head,” he told Børsen.

“Therefore it’s difficult to see the big picture from an investor’s point of view. But it all depends on the constellation in the new company.”

Excellent marketing tools
Torben Jensen, the head of HF, told Børsen that the experts had missed the point, as the envisaged product was not a conventional sports share.

“I can understand that there is scepticism when people hear about a sports share, but this is a marketing and consulting share,” he said.

Jensen explained that companies could use the sports clubs as a marketing tool by providing their customers with sports experiences.

“And the only place where you can really give unique experiences and full value for money is in the sports world,” he contended.

“Therefore we think sports clubs would be excellent marketing tools for enabling companies to attract customers, and that is why we want to buy sports clubs, so we can generate business.”

Well, they were trying to (photo: Richard Masoner )
SAS passenger jet makes emergency landing in Greenland
An SAS passenger flight heading from Sweden to the United States is slated ...
The sun is setting on the Øresund Committee (photo: Nikos Roussos)
Copenhagen drops ‘Øresund’ branding
The city of Copenhagen is dropping out of the Øresund Committee and will i...
Some 35.7 percent of Danish Muslims yearn for their religion to be reformed (photo: iStock)
Every third Danish Muslim wants to modernise Islam
While most Danish Muslims refuse to entertain any idea regarding the reform...
These fellas need to shoot straighter, report says (photo: Riemann)
Police need better firearms training, says report
Police officers in Denmark need better firearms training, according to a re...
Hunt for malaria vaccine yielded unexpected results (photo: iStock)
Danish breakthrough could lead to cancer cure
Danish researchers from the Department of Immunology and Microbiology (ISIM...
Free your mind all at sea and be a part of a winning team on the Scandlines ferry (photo: istock)
Start up the engine on this boat and you could do ferry well!
  Startup Weekend Oresund invites entrepreneurs to sea to compete a...