Anthony S Casey: Football Finance Note in 2017

football finance note anthony s casey singapore

 

Football Finance Note ETI (FFN) provides its investors the opportunity to overcome barriers to entry and participate in short-term receivables sales and other football finance transactions with professional football clubs. There is ultimate recourse to the relevant football league or supervisory bodies secured by pre-
paid claims. FFN does this within the long established, non-cyclical sports industry, with a focus on football TV-broadcasting rights. Receivables sales deals, secured by pre-paid broadcasting rights are an attractive investment, with a compelling risk/return profile, adding yield and diversification to any portfolio within a broad asset allocation strategy. The investment manager targets an annual yield of 6% plus in USD, with tightly managed duration risk and minimal correlation to other asset classes. Always within professional sport, such as English Premier League football, the individual deal sizes are in the range of USD 0.5m to USD 20m, with a typical deal duration of 6 to 24 months. The investment team has a deal track record in excess of 10 years and a deep network within the relevant industry.

January 2017 began with a flurry of activity, given the 4 week ‘Transfer Window’ in the EPL. A new record spend was achieved at GBP1.4b on EPL player transfers, with the other European Leagues closing the gap quickly. This should feed profitable deal flow through FFN with a number of clubs requesting funding.

We were presented with a rare short term, high margin deal, with EPL giving us pre-approval for the transaction, but as we were almost fully invested (~84%), we activated our first ‘capital call’ request to our investors. At the time of writing the deal is now 90% subscribed and we expect to complete the transaction in February.

 

FFN documentation has now been translated into Mandarin, at the request of a Chinese bank and ongoing negotiations should prove fruitful for our expansion into China in 2017.

FFN continues to attract positive media attention given the uncorrelated returns generated, with strong support from the internal staff at Swiss-Asia, we are happy to receive investors from both the Wealth Management & Fund Management teams, creating good capital raising momentum, that our deal pipeline can now match.

We wish you a happy and prosperous year of the Rooster!