Why do Nadal, Messi and Cristiano Ronaldo invest in the hotel sector?

Pau Gasol has just unveiled his business vehicle Gasol 16 Ventures. His motto: “It’s about the journey.” The way is important. Advise, invest and undertake. Top athletes begin to rise exponentially in the business world. Rafa Nadal, Leo Messi and Cristiano Ronaldo, for example, bet on the hotel sector. Nadal, together with Meliá Hotel Internationals and its founder Gabriel Escarrero, opened this week in Palmanova (Mallorca) the first ZEL hotel, the new brand that emerged from this union. It has 165 rooms.

Messi started his business adventure in 2017 by partnering with the Majestic hotel group. From there, the MIM chain was born with six buildings in the aforementioned enclaves: Sitges, Sotogrande, Mallorca, Ibiza, Baqueira Beret and Andorra. Earlier in 2016, Cristiano Ronaldo and the Pestana Group, led by its chairman Dionisio Pestana, signed a joint venture worth 75 million euros, creating the Pestana CR7 Lifestyle Hotels brand, opened in Funchal, Lisbon, Madrid, New York and later in Marrakesh.

Luis García Álvarez, manager of the Mapfre AM Behavioral Fund, explains in EFE the reasons why this profile of elite athletes values ​​”behavioral finance”.

“The athlete of the 21st century has a number of tools at his disposal so that his influence is not limited exclusively to the results achieved in his discipline during his active phase. Their knowledge in certain areas, character, contacts and public resonance put them in a position of clear advantage to undertake or invest in certain sectors, if they devote time to training and choose the right company,” says García Alvarez, host of the La Bolsa del sport podcast and co-author, together with Julio García Mero, among others, the book High performance: from sport to business (Editorial Pirámide).

“To take their first steps in the investment world, many of these athletes choose sectors in which they feel particularly comfortable. This is the case, for example, with Rafa Nadal, Messi or Cristiano Ronaldo, who opened their own hotel chains. These are businesses they know well and whose financial dynamics are not overly complex to understand. Their careers have led to these athletes traveling a lot, which is why they have had the opportunity to gather a multitude of experiences, both positive and negative, in this sector. His experience can therefore be an added value in business development”, he emphasizes.

“Another advantage that athletes invest in sectors related to consumption, health or leisure is the positive effect of associating their image with a certain brand. It is a natural evolution of traditional sponsorship. With the advantage, for both parties, that the athlete is part of the company’s shareholders. Today, big stars have their own platforms, such as social networks, where they can give visibility to these companies and reach millions of potential customers who see them as benchmarks and creators of consumer trends,” says Luis. Garcia Alvarez.

“Apart from the hotel example, there are very similar cases in other sectors with similar characteristics. Mario Suárez, Oscar Trejo and Marc Gasol, among other athletes, decided to invest in the Café de Finca company. Borja Iglesias and Courtois in DUX Gaming. Iker Casillas, Andrés Iniesta or Pau Gasol have their own vehicles through which they direct their investments and business activities,” recalls the manager of the Mapfre fund.

“Others have taken a bold step and have done so in the sports sector itself. This is the case of Denis Suárez, founder of Tabalú, a specialized company for sports nutrition. Also Marc Gasol and his success with basketball Girona. Cesar Azpilicueta and other athletes who entered the world of eSports. The historic captain of our rugby team Jaime Nava and his sports marketing agency All&Go. Or the number 1 Spanish 3×3 basketball player, Carlos Martínez, and his company Ecoballution, which impacts the environment and society,” he adds.

“For all of them, the main aspect is, without a doubt, training. There are more and more athletes who are interested in knowing better how and where to invest their assets or to prepare well for a venture with a more solid base.

«On a personal level, this year I was lucky enough to give lectures on investments to first and second league players who have completed the Global Players Program, from the LaLiga Business School, which is coordinated by former goalkeeper Alberto García. After the summer, I will do the same in the English Premier League, through the new business school of the association of professional footballers, which is chaired by another ex-footballer turned successful manager: Maheta Molango,” says the expert in behavioral economics.

“Recently, there has been a lot of talk about the explosion of investments in the sports sector, which we at Mapfre have been announcing for several years. Now we are witnessing the beginning of another evolution within the industry, the transformation of more and more athletes into successful businessmen or investors, something that is already common in leagues such as the NBA, NFL or American MLB, with prominent examples such as the sadly deceased Kobe Bryant, Shaquille O’Neal, Stephen Curry, Kevin Durant, Magic Johnson, Carmelo Anthony or Alejandro Bedoya (MLS). Europe”, he adds.