Inherited sanctions: how Roman Rotenberg's business is organized

Working in the KHL and SKA, Roman Rotenberg built his own business. What role was played by his father and uncle?
Origin source
On Thursday, July 30 The US Treasury imposed sanctions on 11 individuals and 15 entities, among which was Roman Rotenberg. In 2014, in the western sanctions list were his father and uncle - Boris and Arkady Rotenberg. During the last year the older generation Rotenberg family sequentially transfer their assets to the younger generation. It seems that the US is perceived as an evasion of sanctions: sanctions against Roman Rotenberg could not be entered on the "family basis", his name was included in the list as it helped to circumvent sanctions father - Boris Rotenberg, told RIA Novosti, the US Embassy's press secretary to Russia William Stevens. Roman himself refused to comment on the Forbes US Treasury decision on sanctions in respect themselves. Settled in the Roman Rotenberg Russia over the past few years, he built a career as a sports functionary and businessman. Forbes understood, whether it helped in this his family ties.

In August 2010 the wedding of 29-year-old manager of Gazprombank Roman Rotenberg and 25-year-old top model from Latvia Martha Berzkalna. The wedding ceremony took place at the edgesgu Gulf of Finland Langvik hotel, half an hour from Helsinki. And on the same day dramatically changed career newlywed. "Among the guests were the people you see in the sky hockey, - says the two-time Olympic champion in ice hockey, Vyacheslav Fetisov, coached by Vladimir Putin. - And right at the wedding we decided that the novel as managers and businessmen need more freedom. "

Roman - the son and nephew of the two defendants in the Forbes list of Boris and Arkady Rotenberg (last - President Putin's friend). By the time he was three years engaged in the marketing of the Continental Hockey League and managed the launch of the hotel itself, where they played the wedding - the family bought a vacant building on the bank in 2005.
Family life Rothenberg Jr. has not worked, he divorced shortly, but his work as a sports manager after the wedding went up the hill. Since 2011, Novel oversees marketing of the hockey club SKA, whose president shortly before it was another friend of Putin Gennady Timchenko. In June 2013 Timchenko and Rothenberg bought the Finnish company Arena Events, owns ice palace Hartwall Arena in Helsinkiminority interest in the hockey club Jokerit ( "Joker"). Now package fallen under sanctions billionaires owns Roman Rotenberg. It grows and he created from scratch a group of companies "Sportkontsept".

At first, of course, family ties have played an important role in the Roman quarry, recognizes one of the friends of the entrepreneur.

On the other hand, said Fetisov, Roman "very helpful, efficient and hard-working people." Is this enough to make money in the sport?

Hockey rematch

Sports management has become for the Roman sort of compensation for the abandonment of a hockey player's career. His younger brother Boris is playing in the football club "Dynamo" (Moscow). Sport fond and Roman: 10 years old, living in Finland, went to the hockey school, but on the insistence of the mother went to study entrepreneurial management in The European Business School London. Hockey experience proved useful when he began working in the department of "Gazprom export" Communications in 2006. In 2007, the head of the company Alexander Medvedev, a passionate hockey fan, began to create the Continental Hockey lgu (KHL). The task - to popularize the sport in the country, so that it could earn. He was engaged in a project just communications department, where he worked as Roman Rotenberg.

The former head of the licensing department of the CHL Roman Dvoryankin recalls that the engine project was Medvedev: "He had a cash resource. And the political will. " Sport component remained the same as in the Russian championship. But it was built around real business. League took at the Ice Hockey Federation of the rights to broadcast the games, the clubs agreed that 60% of advertising on sites where matches are held, attracting centrally. What clubs get in return? "KHL takes money from corporations and invests in product creation: agrees on the show on TV, makes a good picture, puts into production, makes good PR increases hockey capitalization and each club individually," - explains Dvoryankin. Clubs have given carte blanche.

As a result, the KHL has attracted the most attractive sponsorship contracts: cellular, beer, office equipment, vehicles. In October 2009, the channel began broadcasting the CHL-TIn which indicate League matches broadcast live interviews with the stars of the CHL, reports on clubs. For picture quality, most clubs had perezalit ice, install new cameras, change the lighting, change clothes athletes. League only partially took over these costs. So, the best broadcaster by the end of last season the KHL recognized Magnitogorsk TV-IN, a new HD-equipment it acquired HC "Metallurg", whose president - owner Victor Rashnikov MMK.

Revenue KHL has not been disclosed. According to Forbes source in one of the members of the League clubs in the last season it has exceeded 2 billion rubles, and the forecast profit - 75 million rubles. League for the first time even plans to distribute between clubs of the revenue from broadcasts - more than 100 million rubles. "Who ever heard of hockey, when there was a Super League? Sparingly flashed in the newspapers. The League has done a lot for his promotion ", - says Roman Rotenberg, in 2011, moved from the KHL SKA (President - Gennady Timchenko). According to him, the conflict was not, but in the KHL, he "did not give themselves to implement."

In November 2014 Medvedev as PresidioLeague and was replaced by the former head of the "Organizing Committee Sochi-2014" Dmitry Chernyshenko, at the time headed the Volga Group, manages assets Timchenko. Roman Rotenberg returned to the CHL in a new way - with his uncle, Arkady Rotenberg, he joined the board of directors. According to one of the former top managers of "KHL Marketing," Rotenberg "planted throughout their people and were able to control everything. It's almost the only Russian commercially successful sports project. "

"The arrival of Timchenko and Rotenberg associated primarily with hockey boom in our country. They have always been close to the sport, well see and understand what sport you have to invest the money - says another member of the board of directors of the KHL, billionaire Viktor Rashnikov. - In addition, they experienced businessmen, and I think they have a clear understanding of what needs to be done to recover the investment. " How does Russia can make a sport now?

"Doctor" to Rotenberg

Own business structure, associated with the sport, creating novel work in parallel in the KHL and SKA. Idath first business threw in 2010, Alexander Medvedev. Representatives of one of the clubs in the KHL he complained that doctors buy non-certified sports nutrition, as a result of doping tests sometimes fix. Medvedev instructed Rotenberg, then deputy general director of "KHL Marketing", check the business plan for the organization of sports nutrition supplies, compiled League managers.

"The plan was nedetalizirovanny when I started to check the numbers, they do not beat all. I went over to Alexander Ivanovich, said that we can not relate to the project, we need to control and financial matters, and all the rest. He asked whether SMP Bank interesting ", - says Roman Rotenberg. Arkady Rotenberg met with Medvedev and agreed that the SMP Bank (owned by Rothenberg, senior) will be co-investing in the company, "Dr. sport", the League will make the project their brand, her doctors will develop the formulation and control of all the processes to be novel. Initially, "Dr. sport" had to supply sports nutrition clubs within the league. In order to run faster notsess, Rothenberg has agreed to establish a joint line to specializing in Badakhshan and vitamins network "Witomino" and even began merger talks. We do not agree on the cost.

As a result, Rotenberg decided to create its own retail network of sports nutrition, KHL among founders left. Contract Manufacturing established in Germany. In the testing, certification and approval of product design it took about two years. The first store under the brand Vitawin opened in 2011 in the shopping center "European". Online users 68 points, they are trading and sports nutrition from leading Western brands, annual revenue - about $ 18 million.

Did League in brand promotion? Dmitry Bosov, co-owner of HC "Siberia", which is friendship with Roman Rotenberg and occasionally played with him in hockey, says that its vitamins that treated him and his club buys sports nutrition along with other brands. "It's a competitive market. League for its part, any pressure on the club does not have, it can only impose quality standards, "- emphasizes Bosov.

When Russia a year ago, WWEand grocery embargo, sports supplements from under the ban immediately withdrew. The main obstacle to the growth of capitalization, according to Rotenberg - a huge gray market. But together with Rospotrebnadzor, sports and law enforcement agencies struggle with him is already under way.

SMP Bank for the first five years, the network has allocated about $ 20 million. To return the money, according to Roman, will begin later this year. In the nearest plans - the creation of production in Russia.

Sleight of hand

In December 2012, on Nevsky, 23, opened a flagship store SKA - Hockey Club. Roman Rotenberg, vice president of marketing for the SKA, proudly showed the 400-meter boutique club president Gennady Timchenko and KHL President Alexander Medvedev. The first buyer was a saxophonist Igor Butman, who plays with both a part of the league amateur night. He chose a club jersey, and the girl-seller, deftly straightened sweater on a special press laid on it the names of the letters and numbers "01". A few minutes later Rotenberg presented the musician a new thing. Nobody noticed that he took out a prepared sweater is not out of the press,and out of the windows ...

In 2013, the Hockey Club monthly revenue has reached $ 200,000 - it turned out that popularity can be monetized. The team, which put "daughter" of "Gazprom" and Timchenko in St. Petersburg collects full stadiums. This season SKA won the Gagarin Cup - winning contribute to sales. "We invited the best players we have invited Ilya Kovalchuk, we show sports results and contribution to this as the president Gennady huge club. Because I was the same and with the same name in the CHL. What I achieved there? Zero, one can say, "- says Roman.

The SKA he created commercial service from scratch. For three seasons the club's revenues from the sale of merchandise increased by more than 10-fold - from 21 million to 230 million rubles.

In addition to the first Hockey Club shop opened three more points - in the Ice Palace, which hosts matches in the SEC "Gallery" and Pulkovo Airport, earned online store. Now this article income, according to Rotenberg, provides a third of the club's budget.

Another 100 million rubles SKA bring advertising contracts, about 280 million rubles - aboutazhi tickets and season tickets, 90 million rubles - for sale VIP-lodges in the Ice Palace (received in the order of 70 boxes of 73 available, Rothenberg dramatically raised their prices: the price of the box with catering for the season - 3.6 million rubles for one match - 120 000 rubles). "We are getting closer to the adopted structure in modern sport" 30-30-30 "income when tickets, paraphernalia and advertising contracts in approximately equal proportions filled the club budget", - he says.

Last season SKA revenues exceeded 700 million rubles. Spending the club did not disclose. It is known that the players salaries in the SKA highest on the market: this season the club paid players a total of 1.27 billion rubles. A separate line is broken in salary in 2013 a contract with "New Jersey Devils' striker Ilya Kovalchuk - the amount of his remuneration estimated at $ 10.3 million per season.

On the business development component of the SKA could earn himself Roman. Part of the equipment and souvenirs with the symbols of the club supplies company stores its own company "Sportkontsept". Products with the symbol of the club - not just hockeyx - made on the orders of the company in China, Turkey and the sites "Sewing and print production Rossport" in Dedovsk and Kostroma. "SKA profitable to work with" Sportkontseptom "- says Rotenberg. - We know the whole chain of pricing, we can not overstate the price, we check the quality and investing in design, business trips of our people in the factory, in the market research. " The annual revenue of the businesses created with zero - around $ 2 million, many of them brings SKA, he did not disclose.

Eugene Larikov, owner Atributika & Club, which provides the Rotenberg part of production, explains the specifics of the market: the clubs are usually bought sports equipment from leading manufacturers, his company produces branded clothes of casual, hoodies, scarves. But Roman Rotenberg found how to make and more expensive gear brands. The second line of action "Sportkontsepta" - exclusive distribution in Russia, Belarus and Kazakhstan hockey equipment Reebok CCM (the unit responsible for tough equipment: skates, helmets, hockey sticks).

Introduction to Roman Reebok began in 2008, when he was engaged in the involvement of sponsors in the CHL. In 2013, when SCA began to grow attendance and ratings of TV coverage of matches, of Reebok has signed a two year contract with the club: players dressed in shape, sewn in Canada. "We have received a huge discount," - says Rotenberg. Assessing business opportunities, managers' Sportkontsepta "began negotiations on the rights for exclusive distribution to Bauer, Warrior and Adidas, the largest manufacturers of equipment. The Adidas, which includes Reebok CCM, were dissatisfied with local representation, and their conditions, says Roman, were the most profitable. In the spring of 2015 a contract was signed. Revenue "Sportkontsepta" of supply for several months exceeded 20 million rubles. The Reebok CCM on request Forbes did not respond.

Provide themselves with an assortment, Rothenberg and thought about their own retail outlets. In December last year, he agreed to purchase the share of the owners of one of the leading sports Internet commerce "Fansayd" (36% bought yourself another 25% - on the company "Doctor Sport", belonging to the SMP Bank). Three of the founders of the portal remainedCamping 39%. The company provides sports paraphernalia shopping online site popular sports media such as "Sport-Express», Cooperation mutually - Managing Director Dmitry Sergeev says that, aiming at of the traffic and getting "dozens of percent" of the profits they monetize your site.

Why online store needed an investor? Sport trading requires long-term money, explains co-founder of the company Alexander Loktev: form clubs varies every season, and that it appeared in the shop to the top of the games, it is necessary to purchase a minimum of six months. If Rotenberg until the arrival of the main sales come from football paraphernalia, now the share of hockey appeared in the assortment and Vitawin products. Monthly turnover, according Loktev, "has increased and a half times" and at the end of the year he expects 80-90 million rubles. This is several times more than, for example, an online store fans of "Spartak" "phratry Shop", the annual revenue which, according to SPARK, amounted in 2013 to 5.6 million rubles, and the profit - 1.2 million rubles.
Jokers in the pack

Maybe it would have remained a Roman businessman of an average hand, if the US and the European Union not imposed sanctions on SMP Bank Rotenberg, senior and themselves. This prompted them to transfer assets to children.

In October 2014 Roman bought a share of his father and uncle in the management company Langvik Capital. In addition to hotels Langvik, he got a part in a group of real estate development company Tanskarlan Centrum, share Rotenberg and Timchenko Jokerit hockey club in his home stadium Hartwall Arena. He assures that the purchase of Finnish assets borrowed "a few tens of millions of dollars", without revealing the source of the loan.

By Roman hotel is now parked Training Ice Palace - a joint project with the Finnish ice hockey player Teemu Selanne, the sports academy will give his name. Jokerit already playing in the KHL. Roman Rotenberg hopes that there will be more synergy. For example, an ice rink can learn from Hartwall Arena efficient use of their space - to organize catering and trade during matches, conducted by the parties shows. Arena Events have already appeared the Russian division, whichIt should deal with business consulting and management of clubs stadiums.

A Rothenberg meanwhile preparing for at least another two purchases.

In the final stage, he said, is the deal with the "SPP Rossport." No Rotenberg or the factory owner of Alexei Zuev did not disclose the amount of the transaction, but Zuev SPARK confirms the data that in 2013, total revenues amounted to 83.8 million rubles, profit - 2.3 million rubles, and in 2014 figures remained approximately at the same level . "We have the right to produce the goods in Russia on the patterns and brand Reebok CCM», - draws prospects Rothenberg. Pick up production, "Sportkontsept" will eventually abandon the Chinese and Turkish supply.

However, most conversations in the sports world are talking about the possible purchase of 80% of the marketing agency "Telesport", the official partner of the Russian Football Union (RFU) and the Russian Premier League, the founder of the company Peter Makarenko. The company attracts sponsors and advertisers who sells the rights to broadcast sporting events, places them in advertising. Its main akwillow - the commercial rights of the RFU, and that it resulted in the union of sponsors like Adidas, Volkswagen, Huawei. The company's revenue in 2014, according to Forbes source familiar with both sides of the transaction amounted to about 5 billion rubles.

The deal was announced in December 2014, but in May it became clear that it was not the end. Rothenberg says that "the deal is in the final stages," and explains the delay in conflict with Makarenko sent in May to retire the RFU president Nikolai Tolstoy.

Makarenko specifies: the transaction is in a "standby mode". "I do not sell the urgent need, although in recent years there were several proposals, - he explains. - In such a transaction I need an investor understanding, aid in financing and comfort in the management of the company. "

Rotenberg says that due diligence and evaluation "TELESPORT" he attracted the Moscow Legal Intelligence Group, but is silent about the results of the evaluation. Sources Forbes argue that discussed the amount ranging from $ 50 million to $ 100 million. In any case, if the deal goes through, Rothenberg receive large and promising asset. Add to arntstvu ticket operator - and get an international player is not worse than the Swiss Infront, which has previously claimed for the purchase of "TELESPORT" or the American IMG.
Especially since Rotenberg family have the opportunity to develop in semi media business. For many years to create quality television picture and League clubs have invested heavily in technical support for the CHL-TV broadcasts. Now, content production decided to transfer to autsoring. In July, a tender for the production and distribution of TV channels KHL-TV and KHL TV HD, the winner is recognized as the company "NTV-Plus". But, as we are assured the interlocutors Forbes, and the largest producer of TV in Russia may appear among subcontractors - the company "Red Square", which owns a controlling stake in 2014. Arkady Rotenberg. Orders can download it and the new Federal Sports channel, which should start in the autumn of holding "Gazprom-Media" (them, as well as the CHL, Dmitry Chernyshenko runs).

"Proceeds from the KHL content production is low - 200-300 million rubles, but then all the marketsto the sports business barely appeared, - said the former manager of "KHL-Marketing". - Who was the first to sit him, then will go to the principal cash flows. " In 2018 in Russia will host the World Cup - it's a chance to earn good money in the sports business.