On June 24th, Caixin News reported that the stock price of Rastar Group (300043.SZ), which owns 99.59% stake in the "Spaniards" football team, rose by the daily limit as the football club qualified for La Liga.

According to a reporter from Caixin News, after achieving promotion to La Liga, besides the increase in broadcast income announced by the club, there is also the potential for an increase in ticket sales, sales of peripheral products, and commercial sponsorships. However, there is uncertainty about whether Rastar Group's sports business can turn a profit, and subsequent management and operations will be crucial.

On June 24th Beijing time, Spaniards defeated Real Oviedo 2-0 in the second round of the promotion playoffs to secure a place in the next season of La Liga with a total score of 2-1.

Rastar Group announced the news at 7:51 am today and said, "The Spaniards' promotion to La Liga this time will significantly improve the television broadcast income of the club for the next season (July 2024 to June 2025), and it is expected to receive no less than 43.7 million euros in broadcasting rights income (excluding value-added tax)."

As someone who has long been concerned about sports events told reporters, ticket sales, sales of team-related products such as jerseys, and commercial sponsorships are some of the main sources of revenue for the club. With the success of Spaniards in achieving promotion, these sources of income are likely to increase.

"If the Spaniards can enter the top 7 in La Liga next season, they will have a chance to participate in the three major European club tournaments in the 2025-26 season, and revenue will be further increased. Based on their strength, the Spaniards should still aim to retain their seat in La Liga next season." said the aforementioned person.

Rastar Group, a publicly listed company on the A-share market, has acquired 99.59% stake in the Spanish football club. The club's athletic performance and the profitability of the company's football club business are strongly correlated. In 2023, the business revenue of the company's football club was 789 million yuan, accounting for 45.52% of the total revenue, but the net profit of the business was a loss of 33.8345 million yuan.

Spaniards were relegated to the Segunda Liga in 2023. During the days when the club was relegated, Rastar Group was unable to cover costs such as player amortization and salaries due to a decline in broadcasting rights income. The 2023/24 season implemented cost control and adopted a salary reduction policy for most first-team players and coaching staff.

An expert familiar with the operation of foreign football clubs told Caixin News that with the success of promotion, the salaries of staff of the Spaniards team may increase. This expert said that there is some uncertainty about whether the related business of Rastar Group can turn a profit and that it is necessary to consider multiple factors in a comprehensive manner.

"First of all, we need to consider the overall economic situation in Europe. In the earlier years when Europe's economy was relatively good, sportswear companies, banks, and even gambling companies were willing to advertise in stadiums. Later, the epidemic had a significant adverse impact on the entire industry. In addition, the impact of the conflict between Russia and Ukraine is continuing. However, it is worth noting that as Chinese companies accelerate their overseas expansion, there is an increasing demand for domestic companies' overseas marketing. "

"Secondly, there is uncertainty about the club's level of competition, including changes in the club's strength, player matching, and changes in competitive strength in player transactions."

Therefore, to sum it up, whether revenue can cover costs and even generate profits will test Rastar Group's comprehensive operational capacity.