After living and working in ten countries, Anthony S Casey joined the finance world in 1996. He made it his mission to bring some much needed colour into an otherwise bland industry by coming up with exciting, rare, uncorrelated investment opportunities that would help engage clients and peers alike. The Football Finance Note is one such opportunity.
Here’s the latest.
The Clash of the Manchester Titans took place over the weekend where the combined team value reportedly topped $1Billion.
But all eyes were on the two stars of the show. No, it wasn’t Jose and Pep but Zlatan and Pogba. One, on a free transfer and the other being the world’s most expensive player. So, what have we learned?
Both teams spent roughly the same in this summers record-breaking transfer window.
City drew first blood, winning the game 2 goals to one.
Source: Football Daily
Although free transfer guy Zlatan hit a great goal, Mr. Pogba and Manchester Utd were not as triumphant. No matter how much money’s at play, it can’t always buy results. Let’s analyze by checking out some key metrics from the game:
Source: Sports Business Institute Barcelona
Manchester Utd will take some comfort in becoming the first English Football Club to make over 500 million pounds in a financial year. Given their poor performance on the pitch last year, I can only imagine how much they will make when they start winning tournaments! But, the other Reds from across the Pennines, managed to put 4 past last years EPL Champions Leicester City, even if Reds Manager, Mr. Klopp did manage to lose his glasses in the process!
Source: Premier League
Perhaps Leicester City will now have to spend some of the GBP100m they recently picked up for winning the league on bolstering their defence team? But they may have to wait until the next Player Transfer Window in January. Will January’s spend top August’s? I think August will be hard to beat.
In fact, for the first time in the EPLs 24-year history spending topped a billion pounds so far this year, as demonstrated by the graphic below:
The ownership of EPL clubs has been a hot topic of late, with the EPL governing body now investigating the recent surge in Chinese purchases. The league considers any stake of more than 30% to represent an exercise of control. It prohibits any single owner from holding more than 10% of multiple clubs, to preserve the integrity of the league, avoiding any potential conflicts of interest. The investigation is focusing on where the funding came from. Was it from private or public sources, are the Chinese government trying to take control of the EPL? Or are the recent surge in deals driven by Chinese corporates simply trying to align themselves with President Xi’s massive passion for soccer?
Let’s take a look at the club ownership picture. US, Russia and China seem to be dominating the club ownership with China going on the most recent spending spree:
Now lets get back to Football Finance Note:
FFN – Performance Update for August:
August was a month of two halves. The first half remained quiet with most of Europe still on holiday, but the second half went crazy, dominated by the closing of the EPL Summer Transfer Window. EPL teams spent over a billion pounds on player transfers for the first time in the leagues’ 24-year history.
FFN now has over GBP47m in deal term sheets issued and awaiting approval by the football clubs, together with more than GBP140m in qualified pipeline deals. This should mean that FFN will be fully invested by Q4.
The NAV has now increased to 1008.11 and during August we continued to receive inflow from our panel of Private Banks.
The Football Finance Note team have been invited to present at the Swiss-Asia Cap Intro event in Hong Kong on 4th October. This is the first time we have ventured into North Asia & we are expecting a lot of interest from mainland Chinese investors looking to play their part in the EPL action. If you would like to learn more about the event or wish to register you can do so here : http://www.swissasia-group.com/cap-intro/
FFN is still the World’s only route for investing USD into top flight English Football transactions, in a listed, regulated vehicle. As such, the team have been fielding enquires from sophisticated investors who are looking to purchase EPL and Championship Football Clubs outright. Given that our team deal directly with most of the Football clubs for FFN, we are in a strong position to introduce both buyers and sellers, without the need for agents, brokers or third party involvement. This will be an exciting addition to our services outside of regular FFN business.
Should you be interested in acquiring a stake in a top tier football club or simply wish to finance the next big player transfer, you can do so from as little as USD125,000 via the Football Finance Note, don’t hesitate to get in touch via FFN@swissasia-group.com or follow our page on Linkedin called ‘Football Finance Note.’