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.”

The world's first same-sex civil partnerships were entered into at City Hall in Copenhagen on 1 October 1989 (photo: iStock)
Axel rose to the challenge, dedicating his life to gay rights
The international media converged on City Hall in Copenhagen on 1 October 1...
The patent of Viagra expired in 2013 (photo: iStock)
More and more young people in Denmark using Viagra
More and more young men are taking medication for sexual dysfunction, Metro...
(all photos:Miklos Szabo)
December Performance: The passion of Puccini
  Il trittico starts Dec 3, ends Jan 30; Opera House, Ekvipagemest...
Sorry, no weekdays! (photo: SMK)
National Gallery cutting opening hours
Statens Museum for Kunst, the national gallery, is implementing several cos...
Denmark is the eighth biggest maritime country in the world in gross tonnage (photo: Danmarks Rederiforening)
Denmark’s merchant fleet has never been bigger
According to figures released today by the Danish shipowners’ association...
Cancer treatments are getting more timely (photo: Pam Gradwel)
Cancer patients getting faster treatment
There has been progress in cancer patients getting timely treatment. Accord...