Enric Pi, centre, in action against Southampton in a pre-season friendly in 2013, has been at Llagostera since 2011 and has helped the club secure promotion. David Ramos / Getty Images
Enric Pi, centre, in action against Southampton in a pre-season friendly in 2013, has been at Llagostera since 2011 and has helped the club secure promotion. David Ramos / Getty Images
Enric Pi, centre, in action against Southampton in a pre-season friendly in 2013, has been at Llagostera since 2011 and has helped the club secure promotion. David Ramos / Getty Images
Enric Pi, centre, in action against Southampton in a pre-season friendly in 2013, has been at Llagostera since 2011 and has helped the club secure promotion. David Ramos / Getty Images

Thriving against all odds: Llagostera proving they belong in Segunda Division


Andy Mitten
  • English
  • Arabic

Eibar’s promotion to the Primera Liga this season, the smallest team to reach Spain’s top flight, was rightly heralded.

They have been a success story and sit mid-table with 11 games to play, while their average home crowd has risen from 2,900 to 4,800 in their 5,200-seater home.

At the start of this term, a team from the Costa Brava, Llagostera, became the smallest club to reach Spain’s second division. Their president, Isabel Tarrago, claimed Eibar were giants compared to her tiny club, which is based 90 kilometres north of Barcelona.

With six promotions in a decade and hailing from a town of 8,000, their council-owned home stadium was woefully undeveloped and held just 1,500.

One small stand offered cover for 200 by the side of the pitch, not even enough to shelter their average crowds of 300.

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After talks with fellow second-division side Girona, Llagostera re-located to a stadium in Palamos on the Mediterranean coast 27km away, with its natural grass pitch and stands seating 5,800 supporters.

With visits from divisional giants Zaragoza, Sporting, Osasuna, Mallorca, Valladolid, Racing Santander and Betis, plus Catalan neighbours Girona, Barca B and Sabadell, Llagostera worked hard at increasing their audience and marketed themselves as a team for the Costa Brava.

They aimed for crowds of 2,000 and offered discounted season tickets but, as the season started, they were operating on the smallest wage bill in the league and seemed destined for relegation.

As expected, Llagostera have spent most of the season in a bottom-four relegation position – until the start of this month.

They changed managers in October and their form improved enough to keep them in touch with division survival.

This month, though, they have won three games in succession – against Recreativo Huelva, Osasuna away and Sunday’s victory against a Barca B containing players with first-team experience, such as Munir El Haddadi and Sergi Samper.

Llagostera have risen clear of the relegation zone to 12th and Sunday’s crowd was a healthy 2,895, more than the average of 2,250.

Their ambitious plan has worked and they may even attract some tourists to their final games, in May, as the weather warms up.

The bigger clubs have brought significant numbers of fans, with 1,500 Betis fans (most of them Andalusians living in Catalonia) present in a crowd of 3,800, which was their biggest of the season.

The pitch cut up badly that day and some Palamos fans were not happy, but the €4,000 (Dh16,600) rent they pay each month is helping fourth-division Palamos solve some of their economic problems.

Llagostera take 30-40 fans away in comparison, but 100 travelled to Pamplona for the Osasuna game, many of them from Llagostera’s youth ranks.

They are delighted with this season and the form of players such as Josep Maria Comadevall (known as “Pitu”), who played a game for Barca in 2006 before slipping down the divisions. Now 31, he is shining in the second division.

Llagostera are in form, six points clear of the relegation zone and nine points off Zaragoza, who are in a play-off spot with 16 games remaining. The pair meet on Sunday.

It is difficult to see Llagostera continue to push on, but Spain’s second division is highly competitive, with only three points separating the top five teams.

Las Palmas and Sporting share the lead, followed by Betis, Valladolid and Llagostera’s neighbours Girona, who have never played in the top flight.

With average crowds of 5,000, Girona also are tiny, compared to the teams around them, but their small squad have remained competitive. They were unfortunate to lose 2-1 at Betis at the weekend.

Spain’s second tier could yet throw up more gems, similar to Eibar, for next season.

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Mercer, the investment consulting arm of US services company Marsh & McLennan, expects its wealth division to at least double its assets under management (AUM) in the Middle East as wealth in the region continues to grow despite economic headwinds, a company official said.

Mercer Wealth, which globally has $160 billion in AUM, plans to boost its AUM in the region to $2-$3bn in the next 2-3 years from the present $1bn, said Yasir AbuShaban, a Dubai-based principal with Mercer Wealth.

Within the next two to three years, we are looking at reaching $2 to $3 billion as a conservative estimate and we do see an opportunity to do so,” said Mr AbuShaban.

Mercer does not directly make investments, but allocates clients’ money they have discretion to, to professional asset managers. They also provide advice to clients.

“We have buying power. We can negotiate on their (client’s) behalf with asset managers to provide them lower fees than they otherwise would have to get on their own,” he added.

Mercer Wealth’s clients include sovereign wealth funds, family offices, and insurance companies among others.

From its office in Dubai, Mercer also looks after Africa, India and Turkey, where they also see opportunity for growth.

Wealth creation in Middle East and Africa (MEA) grew 8.5 per cent to $8.1 trillion last year from $7.5tn in 2015, higher than last year’s global average of 6 per cent and the second-highest growth in a region after Asia-Pacific which grew 9.9 per cent, according to consultancy Boston Consulting Group (BCG). In the region, where wealth grew just 1.9 per cent in 2015 compared with 2014, a pickup in oil prices has helped in wealth generation.

BCG is forecasting MEA wealth will rise to $12tn by 2021, growing at an annual average of 8 per cent.

Drivers of wealth generation in the region will be split evenly between new wealth creation and growth of performance of existing assets, according to BCG.

Another general trend in the region is clients’ looking for a comprehensive approach to investing, according to Mr AbuShaban.

“Institutional investors or some of the families are seeing a slowdown in the available capital they have to invest and in that sense they are looking at optimizing the way they manage their portfolios and making sure they are not investing haphazardly and different parts of their investment are working together,” said Mr AbuShaban.

Some clients also have a higher appetite for risk, given the low interest-rate environment that does not provide enough yield for some institutional investors. These clients are keen to invest in illiquid assets, such as private equity and infrastructure.

“What we have seen is a desire for higher returns in what has been a low-return environment specifically in various fixed income or bonds,” he said.

“In this environment, we have seen a de facto increase in the risk that clients are taking in things like illiquid investments, private equity investments, infrastructure and private debt, those kind of investments were higher illiquidity results in incrementally higher returns.”

The Abu Dhabi Investment Authority, one of the largest sovereign wealth funds, said in its 2016 report that has gradually increased its exposure in direct private equity and private credit transactions, mainly in Asian markets and especially in China and India. The authority’s private equity department focused on structured equities owing to “their defensive characteristics.”