Business of Sport Ep.29: Alfonso Diaz, CEO @ Real Mallorca, ‘How we rebuilt one of Spain's most historic clubs'
Jul 16, 2024
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Alfonso Diaz, CEO of Real Mallorca, discusses the club's resurgence in La Liga after facing relegation, the role of engaged ownership including NBA legends Steve Nash and Steve Kerr, the revamping of the stadium for a unique fan experience, strategies for expanding the international fan base, and the team's run to the Coppa del Rey final while exploring sponsorship opportunities and football analysis.
Real Mallorca focused on stability and financial recovery post-relegation.
Ownership by NBA stars prioritizes sustainable growth through partnerships and media rights.
Enhancing fan experience with stadium renovations and diverse revenue streams.
Deep dives
Revitalizing Real Mallorca as CEO
The CEO of Real Mallorca, Alfonso Diaz, discusses the challenging financial situation the club faced with a 30 million debt and the need to stabilize by focusing on the pitch first. They invested heavily in the team and infrastructure, including a new stadium, to enhance fan experience and drive brand partnerships.
Strategic Investments and Ownership
Real Mallorca's ownership, including former NBA stars Steve Nash and Steve Kerr, emphasizes sustainable growth by leveraging partnerships and media rights. They strategically invest in player development while emphasizing an active investment management approach tailored to individual needs.
Overcoming Financial Challenges and Rebuilding
Despite facing relegation to the third division and significant debt, Real Mallorca's approach focused on starting anew, building a new team, and reinvesting in the club's stability. The club's commitment to growth and its fans played a pivotal role in their resurgence.
Enhancing Fan Engagement and Sponsorship
Real Mallorca aims to enhance fan experiences by renovating the stadium, offering varied hospitality options, and integrating local culture into matchdays. The club actively pursues sponsorships with a focus on engaging fans and creating unique revenue-generating opportunities.
Expanding Outreach and Sustainability Efforts
Real Mallorca is expanding its international fan base, particularly in Japan, and engaging with tech companies for sponsorship opportunities. Additionally, the club emphasizes sustainability efforts and aims to lead in environmental initiatives.
Addressing Media Rights and Financial Stability
The club's involvement in centralized TV rights negotiations in La Liga has boosted revenue and secured financial stability. Investments in infrastructure, player development, and efficient financial management underpin Real Mallorca's sustainable growth strategy.
Today, we are delighted to welcome Alfonso Diaz, CEO of La Liga’s Real Mallorca. We’ve wanted to do a show featuring a Spanish club for a long time, and Mallorca is a truly unique club to do this with. From an ownership structure featuring legendary NBA All Stars Steve Nash and Steve Kerr, to mobilising not just a hugely passionate local island fanbase, but a booming tourist industry, Real Mallorca is re-establishing itself as one of the country’s most prominent clubs.
They have been down to the third division and back over the last ten years, but now after four consecutive seasons in La Liga and a historic run to the Copa del Rey final last year, it’s time to build on the success of the club both on and off the field.
Alfonso is playing a key role in this from the business side. The importance of media rights, leveraging shall we call it ‘island status’ to drive brand and partnerships, building a new stadium and enhancing fan experience; this is the inside track on how to run a team in Spain.
In today’s show, we discuss:
Reemergence of Real Mallorca
The importance of stability. Relegated to the third division of Spanish football in 2017, the club is now off the back of its fourth consecutive year in La Liga.
What goes into transforming a club? The role of Alfonso and the leadership team in returning this historic club to the top division.
New ownership from the US including NBA legends Steve Nash and Steve Kerr, and the value of engaged ownership groups.
The impact of a memorable run to the Copa del Rey final and building bridges with a passionate fanbase.
Football finance:
How do clubs make money?
The difference in revenue as you move through the divisions; from €5m to €85m and the impact of media rights on a clubs ability to spend.
The importance of sponsorships and aligning with brands that share the same values.
What are the opportunities provided by being an island community when driving business growth?
How the CVC investment of €2bn in La Liga has allowed the clubs to accelerate projects that would have taken them 10 years to finance.
Developing club brand:
The challenges with recovering brand value when on the field performance doesn’t match the history of the club.
Capitalising on a booming island tourist industry; 17 million people visit the island each year.
What is the value of being the third most engaged with club in Japan on social media and how to create commercial value from international markets.
Building a new stadium with a focus on experiential to give the fans more than just the 90 minutes of football they watch each weekend.
We are delighted to partner with Tyndall Investment Management for this show. To learn more about Tyndall and their incredible work in the wealth management sector, please visit https://tyndallim.co.uk/
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