Alliance Fund, is set to launch its dedicated sports investment fund as of 30th March 2023, with £1m of investment already made to get the ball rolling on a deal involving a top 30 club from the English Football League, a deal that will yield a 14% return to shareholders.
Issuing bonds is a relatively new concept for the world of professional football, but it is one that football clubs have been utilising more and more and it’s already gaining ground in overseas leagues with the likes of Barcelona, Inter Milan, and Porto each recently issuing bonds worth up to hundreds of millions of Euros.
There are also examples of UK based clubs following suit, with Queens Park Rangers and Peterborough United having both issued bonds with the aim of raising millions of pounds worth of additional investment.
To support this emerging funding process and to help UK football clubs with short-mid-term cash flow requirements, Alliance Fund is launching a dedicated sports investment fund to sit alongside their existing real estate-focussed offering.
Launching on the 30th March 2023, the fund has already seen £1m of initial investment. The initial deal in question involves a top 30 club from the English Football League, with investment into the fund yielding a 14% return to shareholders.
The minimum investment set by the regulators is £50,000 and any investment made is secured as a charge against the club in question, with the 14% returned coming via interest offered on the fund which is secured under a legally binding agreement.
Work on Alliance Fund’s next project is also underway, a £6m fund to aid in another stadium financing deal with yields of 11% offered to investors.
CEO of Alliance Fund, Iain Crawford, commented: “Having personally made multiple investments into football clubs from League One and upwards, I’ve seen first hand how the ability to secure investment via alternative paths can hand a vital lifeline to lower league clubs
“The impact of the pandemic saw matchday revenues reduce by 15.5%, costing teams within the top three tiers millions of pounds in income alone. Many are still struggling to overcome this financial setback and the wider economic landscape hasn’t helped them in the slightest.
“So we’re delighted to finally get the ball rolling on our dedicated sports fund and by utilising my own experience and contacts, as well as Alliance Fund’s existing resources, we’ve created a tailored platform for those who wish to invest in the beautiful game.
“In doing so, we can not only offer exceptional yields to those investing, but we can provide the financial stability that many clubs need in order to overcome current financial difficulties and push on with their future plans.”
