A former MLB pitcher thinks Spanish soccer clubs are undervalued. He’s not alone.
Large investment funds are competing to acquire stakes in LaLiga teams. The league’s biggest selling point is its model of financial solidity.
Spanish soccer has become one of the hottest investment opportunities in the game. LaLiga clubs are among the most sought-after assets on the global market because their valuations are rising while many still offer significant room for growth. That combination has attracted some of the world’s biggest investment funds. BLA, the firm led by former baseball player Michael Schwimer, is close to completing its purchase of Granada. This season, Apollo entered the Spanish market by acquiring a significant majority stake in Atlético Madrid, while Espanyol and Leganés have also changed ownership. LaLiga has embraced the trend, promoting its model of financial sustainability in contrast to what it describes as the Premier League’s “overspending” as a safer, more stable investment.
“We’re attracting serious buyers who genuinely want to be here,” Marta Alonso, deputy director of LaLiga’s corporate management office, told AS. “The fact that clubs continue to be acquired shows that we’re an attractive destination for investors.”
She also highlighted Apollo’s investment in Atlético Madrid.
“It’s hugely significant that Apollo chose Atlético. It shows the club has done things the right way, and so has the league. They don’t hand out money for free. They’re not a charity.”
Atlético’s deal may have grabbed the headlines, but ownership changes have also taken place at Granada, Espanyol and Leganés.
“Every season there are transactions, and it’s healthy for shareholders to change over time. Some investors decide they no longer want to be involved because of how things have evolved, either on or off the field. At LaLiga, we’re very pleased with the profile of the buyers we’re attracting.”
A model built to avoid losses
LaLiga executives are clear about the type of investors coming to Spain and what they are looking for.
“They don’t want to lose money. That’s why they choose LaLiga. That’s an incredibly powerful message. They’re not going to lose money here, and if they do, the losses will be limited.”
The comment is an unmistakable swipe at the Premier League, where owners routinely inject hundreds of millions of dollars to cover losses driven by spending in the transfer market.
“They’re looking for profitability and an attractive asset that won’t lose value. Investors come to us and say, ‘We have this amount to invest and we’re looking for this kind of project.’ Some want clubs they can develop, while others prefer more established teams. Sevilla and Leganés are good examples. Their goal is to increase the club’s value and eventually sell it. In the Premier League, the goal often seems to be losing money. That’s difficult to understand.”
LaLiga distancing itself from the Premier League
LaLiga has made financial sustainability a central part of its pitch to investors and a key point of differentiation from English soccer.
“If you look at the Premier League, there was a huge amount of buying and selling of clubs over the past several years,” Alonso said. “An owner would buy a club, absorb the losses, then sell it to another owner and recover the investment. But over the last two or three seasons, even Saudi sovereign wealth funds have stopped buying Premier League clubs.”
She believes that trend could eventually force English club owners to rethink their spending.
“Eventually, owners will realize they’ve put in more and more money without any realistic way to recover that investment because no one will come along to buy the club. If you look closely, the market for buying English clubs has slowed dramatically over the past two or three years, and that will eventually force owners to turn off the tap.”
Financial controls remain non-negotiable
Despite the arrival of new owners, many of them with deep pockets, LaLiga insists that its financial philosophy has not changed. The league remains committed to requiring clubs to live within their means.
“Right now, every club wants financial controls. That’s one of the reasons investors come here in the first place. It would be hard to imagine them wanting the opposite. Nobody wants to lose money, and it’s difficult to imagine investment funds like Apollo supporting that approach.”
Alonso said every prospective buyer studies LaLiga’s financial regulations before completing a deal.
“Every investor interested in buying a Spanish club comes to LaLiga to understand how our financial controls work, and everything suggests those rules aren’t going to change.”
LaLiga also places limits on capital injections.
“Owners can never simply invest a billion euros. Capital increases that affect the salary cap are limited to 25% of a club’s annual revenue. If your club generates €100 million in revenue, the owner can’t contribute more than €25 million per season for salary-cap purposes.”
Why Spanish soocer still has room to grow
Another reason investors have shifted their attention to Spain is the transformation taking place inside many clubs.
“Spanish clubs are growing. Every increase in revenue translates into a higher club valuation. If you compare Real Betis’ revenue today with what it was five seasons ago, the difference is enormous. The same is true of Atlético Madrid. Ten years ago the club was close to bankruptcy. Today it’s a completely different organization.”
Alonso believes there is still considerable upside.
“The great advantage of Spanish soccer is that there is still tremendous room for growth. Many stadiums were outdated and are now being renovated. Premium hospitality areas account for just 3% to 4% of stadium capacity here, compared with around 10% in the Premier League. That translates directly into higher revenue.”
“As clubs continue to grow, their values will keep increasing, even if they finish fifth in the standings every year. A club that increases annual revenue from €50 million to €60 million in just a couple of years becomes significantly more valuable. An investor may buy a club today for five, knowing it could be worth seven in just a few years.”
LaLiga clubs continue to rise in value and have become some of the most desirable assets for investment funds. Ownership changes have become a regular feature of every season, and all signs suggest that trend is only set to continue.
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