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  • 标题:Structured Finance and Football Clubs: an Interim Assessment of the use of Securitisation
  • 本地全文:下载
  • 作者:Tom Burns
  • 期刊名称:Entertainment and Sports Law Journal
  • 电子版ISSN:1748-944X
  • 出版年度:2007
  • 卷号:4
  • 期号:3
  • 出版社:Electronic law journals project
  • 摘要:

    Securitisation is a financing technique that rests upon a complex legal foundation. Its purpose is to allow companies to raise low-cost finance from the capital markets. This technique has been used successfully in a range of businesses over many years, but it was only adopted by football clubs in much more recent times. Between late 1999 and 2003 there were a number of football securitisations and these raised many millions of pounds for the clubs. The technique appeared to be successful and as a result of this more clubs expressed an interest in securitisation. However, instead of seeing a continuing growth of securitisations in the football sector, the process came to sudden halt in late 2003. A series of insolvencies among football clubs revealed certain weaknesses in the legal and financial structures of football securitisations. These weaknesses resulted in financial losses for some investors and it had the effect of discouraging others from risking their money in future securitisations. This led to speculation that there was little or no future for securitisation in the football sector. However, it is possible that the recent improvement in football finances and the current benign climate for bond investors may encourage a revival of the technique, particularly if the lessons of past mistakes can be absorbed. Arsenal instigated the largest football securitisation to date, in July 2006, to raise £260 million and there has been press speculation that other clubs may follow Arsenal’s lead. Under these circumstances it may be useful to make an interim assessment of the use of securitisation in football. The paper shall examine why securitisations were popular with clubs and why they came to a sudden halt in 2003. It shall then seek to discover what lessons can be learned from football’s initial, but traumatic, experience with this financing technique. Finally, the paper shall consider whether there is a realistic possibility that more football clubs might be able to reassure investors that it will be safe to participate in football securitisations in the future.

  • 关键词:Structured finance - special purpose vehicles - football revenues ;- securitisation
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