Ruch Chorzów's brave decision

Marcin Poznań: Opening with zł.2.30 per share and finishing with zł.1.84 on the day of debut is not very impressive. How would you assess Ruch Chorzów's debut?

Piotr Trzeciak: There are two factors to remember. The first one is that [the team] debuted during this very difficult time for the economy, with the indexes on the bourse losing value and investors attitudes remaining negative.

The second thing to remember is that a sports company involves a specific kind of activity. The financial result is not always parallel with the sports result. When a club wants to achieve good sports results, it usually has to invest in new players. And the financial results from those investments can prove positive only in the long term.

Was it a good decision to enter New Connect? How will Ruch Chorzów's presence on the bourse look?

It certainly was a brave decision, one which should finally prove successful in the long run. It may also encourage the CEOs of other sports clubs to follow suit. However, the road to success will be very difficult.

One important thing to remember is that investors always look at a company's potential. Polish soccer clubs don't have clear revenue structures - most of their revenues come from broadcasting rights, and then there is money from sponsors, ticket sales, souvenir sales, etc. There are at least two clubs I would have expected to enter the bourse sooner than Ruch Chorzów - Lech Poznań and Legia Warszawa - because they have better and more transparent revenue structures.

The club's management hopes that Ruch Chorzów fans will buy shares. What do you think?

If someone feels sentimental towards the club, I would suggest buying the shares now. But the club's fan base is relatively too small to consider it a big shareholder group. So this target is very limited. Plus the club's brand is not that well-known.

It is also hard to imagine that supporters of, let's say Górnik Zabrze, would buy Ruch Chorzów's shares.

Ruch Chorzów plans to enter the main WSE floor within a few years. Can this plan succeed?

Many companies treat New Connect as a waiting room before the [WSE]. I imagine this is also true in the case of Ruch Chorzów, at least in the minds of its owners. I am very curious myself how it will develop. Let's remember that the company had generated losses for many previous years, and just this year it managed to stay in the black. But if the company decides to increase its value by buying new players, ones who could lead it to the European championships, then we have to count for big spending.

And let me repeat, the team's sports result can generate profit in a few years' time.

So, in a word - is it worth investing in Ruch Chorzów shares?

Yes, but not as a speculative investment for a few months. It is rather a long-term investment, at least for a year.