Targeting Prestige, So The Reason For Indonesian Conglomerates To Invest In Sports Clubs Abroad

Como 1907 finished runner-up in Italian Serie B and promoted to Serie A. (Serie B)

JAKARTA The story of Como 1907 was successfully promoted to Serie A Italy to become a byword, especially among football lovers in Indonesia. How not, there is a smell of Nusantara in Como's success ending the 21-year wait.

Recently, a video circulated on social media of how Cesc Fabregas and the Como players and the coaching staff seemed anxiously awaiting the final result of another Serie B match between Venezia and Spezia. Como himself just drew 1-1 against Cosenza, Friday (10/5/2024) local time.

Venezia's 1-2 defeat, a club defended by Indonesia's naturalized player Jay Idzes, from Spezia was greeted with joy by all Como players because this also ensures that they survive in the highest caste of Italian football after waiting more than two decades.

Indonesian football lovers are also happy with Como's return to Serie A. How not, the club is owned by the conglomerate Indonesia Hartono brothers from the Djarum Group.

The status of the Djarum Group as the majority shareholder of Como has extended the list of Indonesian trillioners who are entering the world football industry. Como's name is not as big as AC Milan, Juventus, or Inter Milan which can be called three Italian giant clubs. His achievements were not too flashy. The highest won Serie A in the 1948/1949, 1979/1980 season, and finally in 2001/2002.

But their journey from Serie D to finally managed to promote again after two decades of more attention. Moreover, there are big names like Thierry Henry as the owner of minority shares and Cesc Fabregas, as assistant coach from Wales Osian Roberts.

Dan, jangan lupa ada suasa Indonesia di klub yang pertama kali berdiri pada 1907 itu. Adalah Hartono saudara, Bambang Hartono dan Budi Hartono, penguasha Indonesia pemilik Djarum yang membuat Como akan bersaing dengan Inter, Milan, dan Juventus musim depan.

The Hartono brothers through the Djarum Group bought Como 1907 in 2019, and at that time they were still playing in Serie D. Quoting Athletic, Djarum Group spent 850 thousand euros (IDR 14 billion) and paid off all debts of 150 thousand euros (IDR 2.6 billion) to take over Como.

The club's unhealthy financial condition makes the selling price not too high. SENT Entertainment LTD, a London-based company full of Djarum Group, acquired Como's majority stake.

"We didn't buy up to IDR 5 billion. In other words, we searched the pawnshop," said Mirwan Suwarso, a representative of Mola TV, one of the businesses owned by the Djarum Group, to the media in October 2019.

Mirwan said that initially the Djarum Group investment in Como was aimed at accommodating Garuda Select players. But this intention was hit by regulations on restrictions on non-EU players in one club in Italy.

"After that, we inevitably work on Como as an effort to provide maximum commercial value," said the man who was born December 29, 1985.

As the club owner, Group Djarum operates with a pragmatic business model, including not buying players to maintain the club's financial feelings. Mirwan emphasized that his club has a policy so that the maximum salary ratio is 65 percent of the total income.

Since the name Como flew after successfully winning a promotion ticket to Serie A, the question has arisen what makes Group Djarum buy a club that can be said to be less well-known in Indonesia.

Although they are less popular than the achievement flood clubs, the Djarum Group's move is a long-term economic step according to capital market observer Teguh Hidayat.

"So in terms of economic value, whether it can benefit from the steps to buy shares or acquire this club, the profits are there, but not directly," said Teguh.

He also explained that football club revenues usually come from several sectors, namely match tickets, broadcasting rights, and sponsorship.

Actually there is one more thing, namely from merchandise. So selling clothes, t-shirts, or official merchandise. But usually the biggest income, if he is not a famous club from tickets only," he said.

Teguh continued, although Como managed to qualify for Serie A, his not too big name made I Larani less likely to get income from broadcasting rights or sponsorships.

However, the Djarum Group must have considered carefully before injecting funds into Como. It is not an instant advantage that is targeted, but by raising the name Djarum itself on the international stage.

"This is actually a common thing and has been done by many conglomerates not only from Indonesia but throughout the world. For example, in England there is a Manchester United club or MU, it has a Glazer family from the United States. Not from England, it's from America, so people in the world know who the Glazer family is," said the founder of the Avere Partner Investama.

By performing in Serie A, Como can become a'vehicle' for the Djarum Group, its existence is known to the world.

"That's what you're actually looking for, so it's not a direct advantage of the club's operations because actually from operations it actually loses," said Teguh.

"Indeed, what they are looking for is prestige, for example, this Djarum group, who doesn't know in Indonesia. If they can advance to global brand, and the most important way to do it is football. Because football is universal, many watch it, "he added.

The Hartono brothers and the Djarum Group are not the only Indonesian conglomerates to do business by buying foreign football clubs.

Apart from Como, Tranmere Rovers was also acquired by Indonesian entrepreneurs in 2019. The third Premier League caste club was bought by Santini Group, which was founded by Indonesian businessman Sofjan Wanandi in 1994.

The club that Egy Maulana Vikri has defended, Lechia Gdanks from Poland, is 10 percent owned by PT Veritra Sentosa Internasional (Paytren), which is a company owned by Yusuf Mansur.

The famous Ustaz bought Lechia's shares in 2018. Reportedly, he poured a surplus of 2.5 million euros or around IDR 41.2 billion to own 10 percent of Lechia's shares.

Leicester City, who won the English League for the 2015-16 season, once owned by Indonesian Imam Arif by 20 percent. He bought Leicester's shares in 2011, but a year later released all of his shares to Leicester's majority stock voter company, King Power.

Erick Thohir also acquired DC United, a club playing in Major League Soccer, in 2012. He and his partner Jason Lavien bought 78 percent of DC United's shares. In August 2018, Thohir released his shares in DC United.

However, Erick Thohir bought the most phenomenal club shares when he controlled Inter Milan. He acquired 70 percent of La Benemata's shares previously owned by Massimo Moratti.

But he only lasted three years holding the majority stake, before selling his shares to the Suning Group by 39 percent. The influence of the man who now serves as Minister of BUMN was completely lost after selling the remaining shares in Inter to Hong Kong company Lion Rock in 2019.

Meanwhile, the Bakrie Group also bought shares in the Belgian team CS Vise and the Australian team Brisbane Roar.