A Guide To Financing Football Clubs: Part 1 – Debt Finance

Football Finance - Debt Financing Image
Friday, 06 August 2021 By Michael Savva , Stuart Bolton

Finance is a key aspect of football today. Increased professionalism, competition and regulatory requirements have encouraged clubs and leagues to source finance to survive and thrive. However, the pandemic has squeezed already tight balance sheets and forced clubs to find increasingly complex methods to protect their financial health.

This article series explores investment and finance in football.  It is split into three parts, which will examine in turn: (1) debt finance, (2) equity finance and ownership models, and (3) future trends in football finance. 

Part 1, below, begins with a brief discussion on why clubs raise finance and who the investors are, to frame the substantive parts.  It then examines debt finance through:

  • Working Capital Facility - For example, Southampton’s long-term corporate finance with MSD Holdings, secured by a debenture over the business;

  • Receivables - For example AFC Bournemouth using the £12,000,000 instalments due from Aston Villa in relation to the transfer of Tyrone Mings, as security for a term loan from Macquarie.

Part 2 – Equity finance and Ownership Models, is available here.

Part 3 - Future trends in financing of football clubs, is available here

Continue reading this article...

Register with your email and password
Already a member? Sign in

Get access to all of the expert analysis and commentary at LawInSport including articles, webinars, conference videos and podcast transcripts.  Find out more here.

Related Articles

About the Author

Michael Savva

Michael Savva

Michael is a Solicitor in the Asset Finance practice at Watson, Farley & Williams LLP. He specializes in advising clients in relation to sports finance including: loan finance, financing of broadcasting and ticket revenues and the player transfer finance.

 

  • This email address is being protected from spambots. You need JavaScript enabled to view it.
Stuart Bolton

Stuart Bolton

Associate, Watson Farley & Williams (Middle East) LLP

Stuart is an associate in the Assets & Structured Finance group, based in Dubai.  Stuart predominately advises investment banks on complex cross-border asset finance transactions in the aviation sector, and also practises sports finance and general corporate banking.

Since starting with Watson Farley & Williams as a trainee in 2016, Stuart has worked in London, Hamburg and Dubai.

  • This email address is being protected from spambots. You need JavaScript enabled to view it.

Leave a comment

Please login to leave a comment.

Courses

Legal Advisors

Upcoming Events

There are no up-coming events

Copyright © LawInSport Limited 2010 - 2021. These pages contain general information only. Nothing in these pages constitutes legal advice. You should consult a suitably qualified lawyer on any specific legal problem or matter. The information provided here was accurate as of the day it was posted; however, the law may have changed since that date. This information is not intended to be, and should not be used as, a substitute for taking legal advice in any specific situation. LawInSport is not responsible for any actions taken or not taken on the basis of this information. Please refer to the full terms and conditions on our website.