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Romania and its Attraction for Foreign Investments into the Sports Industry

Actualizată în: 21 aug. 2020

After months of winding struggles and financial challenges, the family of the FC Dinamo club has reasons to celebrate. The takeover of the majority of the club's shares by Spanish financiers and the smart stadium project have finally taken shape.

For the first time in the 72 years of the club's history, a foreign company owns the majority of the shares (72.5%), the remaining 27.5% being represented by the club's supporters through the "partner" program. Following the takeover, the new management wants to take immediate actions regarding the hiring of a new coach, the transfer of players from the Spanish second and third divisions and the revitalization of the second team. The project of the new Dinamo smart arena is already submitted to the National Investment Commission and will start until next year. Several other national stadiums are part of the same investment plan. In this context it is important to understand the difference between financing and investment. An investment can only be made in assets. Currently, the important football clubs in League 1, owned in the past by the state, as well as the example in question, have only the team of players with the related staff in their patrimony. The stadium, the sporting base, the name, the performance record, the logo and any other identification element with economic value are actives in the property of the state-controlled structures. Therefore, a takeover of the majority stake of the football club in question has the value of a debt assignment by which the new financiers agreed to take over the club's debts, to reach an agreement with the right holders of the club's assets regarding their right to use and to use the potential of making a profit from players' transfers. With a global vision and a long-term strategy, more intelligent formulas of collaboration could be found for the common advantage of the private and the public side in order to develop the sports activity in Romania.

Romania has an enormous development potential. The sports and entertainment industry and tourism related to these activities could become an important source of income in the coming years for direct investment and public-private partnerships. Natural and human resources and fiscal facilities are some of Romania's competitive advantages. How private and public interests will merge is essential for a coherent policy of successful investment in the sports industry at the country level.

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