The business of football finance has continued to grow globally, while a general greater discipline and organisation in the management of clubs has created attractive financing opportunities for funders.
There is no reason for the growth in opportunities both for clubs to access funding, and for funders to enter the market, not to continue.
There is a real need for an experienced intermediary:
- To help match football clubs with the appropriate regulated and reputable financial institutions;
- To manage and execute successfully the transaction process; and
- To work with financial institutions to develop and maintain market-leading and innovative structures that can provide the funding that clubs require in a manner recognised and blessed by the relevant regulatory authorities.
The growth of receivables funding in football receivables financing allows a club to accelerate the receipt of future cash receivables. Given the seasonal aspect to the cash flows of football clubs, this type of financing can provide significant cashflow benefits and lessen a club’s reliance on overdraft facilities and bank borrowing. Further, unlike bank debt, receivables financing is not a liability on the company’s balance sheet and thus can help a club to achieve a better result in its annual break-even calculations for the purposes of the UEFA Financial Fair Play Regulations.
In light of the increasing pool of revenues that clubs can seek to finance in this manner (notably the increase in broadcasting revenues), as well as the additional scrutiny and restrictions placed on “related party transactions” by the Financial Fair Play Regulations, it is no surprise to see a growth in clubs seeking to utilise third party receivables financing to provide cash injections to assist them with the day-to-day running of their business.
Sourcing Receivables Financing
Through our partners we are able to source and structure receivables funding structures specifically tailored for the football industry.
Our focus is on assisting clubs and investors by providing access to funding solutions, principally receivables based financing options.
- Player Transfers – Football Player Transfer
- Broadcasting Contracts
- Sponsorship and Stadium Naming Rights Revenues
- Season Ticket and Hospitality Receivables
Football Finance Consulting’s role
We are at the forefront of developments in football financing. The structures adopted by the funders we work with can often eliminate the ‘direct headline risk’ associated with traditional direct lending to the relevant borrower. We work with the leading legal advisers across multiple jurisdictions, enabling us to adapt recognised structures to new markets.
We have a successful track record in delivering new structures for new jurisdictions, something that distinguishes us from the competition. Likewise the group of funders we work with is diverse and operates in different spaces in the market – while working simultaneously with multiple funders provides the best options for our clients.
Our financial advisory focus is to provide bespoke services to Clubs, to advise in respect of general financial planning, funding opportunities and options that can include the following areas:
- Cash Flow Management
- Club Restructuring
- Receivables Financing
- Club Investment
- Stadium Financing