Super League, the European Team’s biggest team, has been making controversial news in recent days. However, one money manager who owns soccer clubs believes that it will help his assets.
Around 12 European soccer teams announced plans to begin the latest exclusive league in April 2021. The six British clubs interested in the league, however, backed out, causing the preparations to fall off.
One company has been checking up on the Super League’s current shambles. Regardless of the bad publicity, Luis Garcia Alvarez, the MAPFRE Asset Management Behavioral Fund manager, believes it would increase investor trust in sports leagues.
The increased approach is based on cognitive science, which combines psychological and economic ideas to explain better the reason why individuals live the way they do. It is home to between 30 and 35 businesses.
Luis Garcia Alvarez owns 10% of the £50.5 million or an equivalent of $70 million strategies, with shares in European teams Olympique Lyonnais, Amsterdamsche Football Club Ajax, and Borussia Dortmund. He mentioned that soccer is one of the most convincing success stories in the industry in a message.
Alvarez stated, “All these three are well-managed clubs, with solid balance sheets. European football is going through a transformation, but most investors, mainly European, are not paying attention to it because of behavioral biases and the short-term noise around the industry. It is the reason why one can find significantly undervalued assets, in our view.”
Alvarez’s assets have been unaffected by the Super League situation. Instead of hurting the case for investing in sports, he believes the circumstance has heightened interest in the market, with more professional investors now paying attention to what is happening around.
According to Alvarez, “The impact on the market prices of the clubs we hold has been almost negligible, and they continue to trade well below their intrinsic value.”
He also stated that the safest way of playing the long-term investing match in European soccer is to participate in well-managed leagues with little risk.