The plans of football club NAC Breda to raise €5 million through bonds for the purchase of the Rat Verlegh Stadium have been met with critical questions. Sports economist Thomas Peeters of Erasmus School of Economics understands the logic of the plan, but also points out the risks.
According to Associate Professor Peeters, stadiums have become increasingly important as commercial assets: ‘Clubs can earn more per visitor, such as through sponsorship packages and catering arrangements.’ However, he emphasises that stadiums are ‘very specific assets’ for investors, with limited value if the club runs into difficulties.
Nevertheless, Peeters calls NAC’s bond plan ‘a smart move’ to raise money. ‘For many supporters, the business case is less important. That is the essence of investing in football: it is about sporting performance, not about returns.’
With the “Besiege van Verlegh”, NAC is targeting loyal fans and sponsors, who should help make the stadium possible through bonds. However, negotiations with the municipality of Breda on the purchase price and conditions are going badly, and the required approval from the AFM is still pending.
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Read the article above that Het Financieele Dagblad published on Monday 7 April. For more information, please contact Ronald de Groot, Media & Public Relations Officer of Erasmus School of Economics, rdegroot@ese.eur.nl, +31 6 53 641 846.
