The successful case of Frosinone Calcio and Tifosy Capital & Advisory
In 2018, Frosinone, now an Italian Serie B club, launched a five-year bond.
✅ Passionate fans or smart investors?
The "Frosinone Bond" was the first online retail bond.
The goal was to fund itself for €1m, but high investor demand led the club to raise €1.5m.
Features of the bond:
Duration: 5 years
Interest rate: 8%
Number of subscribers: 364
✅ How did the club use the funds?
Many clubs would have used the funds for the transfer market, but Frosinone instead invested in:
1. a new store for the club
2. the medical center
3. a high-end gym
4. work on the new stadium
Music to my ears.
✅ A bit of football business history
In 1999 U.C. Sampdoria, at the time in Lega Nazionale Professionisti B, had decided to issue a bond to finance its rise back to Lega Serie A.
Thanks to E. Salvarezza, the club's GM at the time, I was able to retrieve the article discussing the issue (in the 📸).
A collector's item for football business enthusiasts.
The details of U.C. Sampdoria's innovative bond:
- Issue: €3.5 mln
- Interest rate:
- minimum guaranteed 2.5%
- 7.5% in case of promotion to Serie A
- 5% in case of staying in Serie A
- 14% in case of qualification in UEFA Champions League
✅ I like two things about this story
1. The courage of a relatively small club to work on a creative and innovative solution.
2. The smart use the club has made of funds with the goal of improving the club over the long term.
❗ This is a great example for all those clubs that do not have endless funds behind them.
I remain curious about how the 8% interest rate was defined by Tifosy Capital & Advisory.
Yesterday I talked about A.I. (Zone7), and today about online bonds.
Managing a football club is not just about buying and selling players.
It's important to be able to find solutions in other industries with the goal of improving every area of the club.
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