It’s always fun to look into companies with no coverage, and this is a fascinating one.How often does one look into a company that owns a football club, a stadium that hosted Eurovision, a round of 16 UEFA EURO 2020 match, UEFA Cup final, a Michael Jackson concert, 3 holiday parks with 2,300 holiday homes, and rents office space with occupancy above 90%?What a treat. Let’s get started.1.0 The history1.1 The beginnings of Parken Sport and Entertainment A/SThe city of Copenhagen had a stadium that wasn’t too big and was sold to an insurance company, Baltica, which demolished most of it and rebuilt it in 1992.Now, there was a new stadium, with a capacity of 40,000 seats, but there wasn’t a club big enough to fill it. So, two old Copenhagen football clubs agreed to merge:Kjøbenhavns Boldklub, founded in 1876B 1903. F.C. founded in 1903That was the birth of F.C. Copenhagen, and it became the main tenant of the new stadium, which was named Parken.Baltica wanted out of the stadium, and the most interested buyer was the football club. The transaction took place in 1998, for DKK138 million, and a year later, the company name changed to Parken Sport and Entertainment A/S.Football clubs are terrible businesses. The fixed costs are high, and the reward is dependent on the performance of the club, which is not guaranteed. Quite risky, even more so for a company that had to use leverage to buy a stadium.1.2 The acquisition spreeSo naturally, the question popped: How to reduce the exposure to what happens on the football pitch? What followed was a decade of investments/acquisitions, all with the purpose of diversification.2001 - A rolling roof over the stadium was installed, making it Europe’s largest indoor arena. The first event under it was the Eurovision Song Contest.2001 - Acquired Rockshow, a touring outdoor concert promoter2002 - Acquired 51% of the ticketing business E-billeter, the handball activities of FIF (which became FCK Handbold)2004 - Acquired Lalandia at Rødby from Reka GroupMid 2000s - Acquired fitness dk, a Danish gym chain2009 - Opened Lalandia BillundThe bad news: almost all failed. The handball club, the ticketing business, the TV stake, the concert promoter, and the gym were all sold or wound down.The good news: Lalandia compensated for everything. This is where the value is.2.0 How to actually analyze the companyGiven that there are diverse assets, I do think a sum-of-parts valuation is appropriate. The assets to look into are:The football club (and the events business)The stadium and the office space being leasedThe Lalandia holiday parks (the underlying model is quite interesting)By the end of the post, the goal is to have a valuation for each one separately, and for the company as a whole.Is this a profitable company? Yes. Does it look volatile? Yes.Let’s figure out why.2.1 Parken EjendommeLet’s start with the easiest component to value: the stadium (which, by the way, is Denmark’s national stadium) and the commercial leases in the office towers that have maintained 90%+ occupancy rates.The yield on commercial properties in Denmark ranges from 4-7%, depending on the asset class. The after-tax profit of this segment is around DKK 34m, which would imply a valuation between DKK 485m and DKK 850m.Note that the events that take place at the stadium are included in the F.C. Copenhagen segment. The rationale is: Whatever happens on the field (which is mostly football matches) is part of the F.C. Copenhagen reporting segment.So the profit mentioned above is only the rent revenue and doesn’t capture the additional activities that take place. I won’t change the estimate, as the additional revenue is captured later on.These are high-quality, unique assets that generate stable recurring revenue/profit. My best estimate for the fair value of this segment: DKK 700m.2.2 LalandiaNow it gets interesting.There are three Lalandia locations, but before we go into them, here’s the model.The attractions are there: an aquadome, character shows, bowling, interactive darts, trampolines, climbing walls, “Tarzan“forest, restaurants, shops, a cinema on site; the list goes on. From activity-related payments to food/beverage/retail, workshops, the monetization is there.What about the holiday homes?There are holiday homes as part of the holiday resorts, and they’re built by a 3rd party, but more importantly, SOLD to interested buyers. This is why the revenue in 2021 was significantly above the trend. The 2019/2020 decrease is COVID-19 related.But wait, there’s more.Lalandia is renting the holiday homes on behalf of the owner, and collects a commission on nights booked, indefinitely.So, there are 3 revenue streams:One-off saleCommissions (based on nights booked)Guest spending (activities, food/beverage/retail, etc.)Selling the holiday homes is a great way to reduce its exposure if things go wrong. When owning a football club, that’s not a bad idea. Controlling the demand/supply and capturing a percentage when NOT owning the holiday homes is a great business model.There are 3 Lalandia locations:Rødby - the original, opened in 1988, acquired from the Reka Group. This is mature, with around 750 holiday homes.Billund - opened in 2009, next to Legoland, with ~1,000 homes and room to build 200-500 more.Søndervig - Opened in 2022, the newest one, which is 75% owned. A bit over 500 homes already built, with an additional 141 to be completed during 2026.Currently, this segment generates DKK~120m in profit after tax (after adjusting for the 25% of Søndervig that is not owned), which is double what it was back in 2017. If all of these parks were stable, I’d argue that a multiple of 10 was fair. However, there are three growth engines here:Both Billund and Søndervig will grow their inventory in terms of holiday homes available for rent. As they grow, they’ll capture a slight profit on the sale of the holiday homes. This is one-time, and although significant, I’ll ignore it for the purpose of valuation.With more holiday homes available, the number of guests will increase, and the revenue generated from these additional guests will be high-margin, as the main attractions already exist, and most of the operating expenses remain the same.Søndervig was opened less than 5 years ago. New holiday parks lack trust at the beginning, which is built over time. When the trust is there (as the other two locations), the capacity utilization will increase. Similar to the point above, the new guests are high-margin, contributing to the profitability of the company.With this in mind, I do expect the profit after tax to grow by at least 30% in the next few years to DKK 170m. This is excluding the one-time profit on the sale of holiday homes.Therefore, a multiple of 12 on today’s profit is justified, leading to a fair value of Lalandia of DKK 1,440m.Subscribe now2.3 F.C. CopenhagenFinally, the last piece of the puzzle. The football club and the events business.This chart illustrates how risky this is.In 2023, the profit generated was DKK 250m, as the club got to the round of 16 in the Champions League.In 2024 and 2025 combined, it was DKK 150m.How to value a football club when the profitability is so uncertain? The truth is, using a DCF model or something similar is impossible. There will be good years, there will be bad years. Having the events-related revenue here gives some stability, although how significant that is is not disclosed.My best estimate is to exclude the positive outlier (reaching round 16 of the Champions League) and use the DKK 100m as average profit/year.With a multiple of 8, my estimate of the fair value of the F.C. Copenhagen segment is DKK 800m. At the same time, although this is very uncertain, football clubs are also perceived as “trophies” to collect by the very rich. This valuation translates to ~$120m, which is not unreasonable for someone who became very rich and is a fan of the club to pay.3.0 Valuation vs. market capMost of the pieces were outlined above.The company’s fair value is not far from today’s market cap.I was conservative by leaving out the one-off profit of holiday home sales and excluding the positive outliers from the F.C. Copenhagen segment.There are two reasons why I find this company interesting to follow over time:First, from a business point of view, this is a unique portfolio of revenue streams. There is no company like this one, and each segment can be sold separately. I do think that will happen at some point.Fun fact: Back in 2022/2023, there was an attempt to sell Lalandia, which didn’t go through, as the offers weren’t “sufficiently economically attractive for now”Second, only two years ago, the market cap was DKK 1 billion! If we go back to Oct 2022, the market cap was below DKK 700m!Would I buy at this price? No. But I will keep an eye on the company. There are a few interesting scenarios:A divestment of a segment takes place, above what I consider fair value, and the market doesn’t recognize it.A divestment of a segment takes place below what I consider fair value, and the market overreacts.There is bad news related to the F.C. Copenhagen segment, and the market overreacts.What started as a football club buying a stadium is now a group of holiday resorts and a stadium with leased office spaces that also own a football club.This is NOT investment advice. Everything above is for entertainment, informational, and educational purposes. Do your own due diligence.Subscribe now