Fasanara Capital and Tifosy Capital & Advisory are about to launch a new $500 Mln fund that aims to lend liquidity to football clubs.
How does it work?
Investors buy shares in the fund, the fund lends the money to the clubs, which pay back through player transfers or ticket sales revenues.
I have no idea what the loan rate is, which will also vary depending on the risk the club presents.
The fund will give smaller clubs in Europe's big five leagues immediate access to the capital they need to grow.
👉 MSD Holdings, Michael Dell’s investment firm, is particularly active in this sector.
It has already provided loans (some at 9%) to football clubs like Burnley, Derby County, Southampton, and Sunderland.
As with a striker, speed of execution is crucial to closing a deal or securing a player that multiple teams want.
Fast access to capital is a growth opportunity that can greatly improve a small club's situation.
The management teams who know how to use this new resource well will reduce the gap with larger clubs.
As I always say, you can win on the pitch and off the pitch.
A small club that could never win a championship can instead win the championship of better-managed clubs.
And it takes a mix of discipline, creativity, and extra-football skills to do so.
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