Apart from transfer fees what other income streams can Sports Organisations accelerate?
Clubs can use this form of lending to manage cash-flows against a number of different income streams. FSC have worked on deals that have successfully managed cash-flows against the following income streams;
- Transfer fees
- Sponsorship income (club/stadium/kit)
- Broadcast income
- Season ticket income
Is it possible to secure against multiple revenue streams in a single deal?
Yes . . . FSC works on two main transaction types...
Transaction Type 1: Transaction Specific
This transaction type is the simplest and generally involves accelerating the cash-flow against a single future committed revenue stream, such as a transfer fee or a sponsorship contract.
Transaction type 2: Multiple Income Streams
This transaction type involves securing the loan against a number of income streams, (i.e. a combination of transfer / sponsorship / broadcast / season ticket). This deal is more complex and requires a detailed business plan. FSC will build all the requisite financial models and author the presentation made to our PLC board or our panel of banks.
How much will it cost?
Transaction costs are wholly dependent on the contract managed by FSC.
The rate is dependent on the risk profile of the income stream, the length of the contract and the strength of the contracted party.
What if the parties are unable to agree a deal?
FSC operates on a commission only basis. Pre-agreed fees are only charged on successful deals. If for any reason FSC are unable to secure a facility that meets the clubs specific requirements the club will not be charged. FSC are very experienced in this type of facility arrangement with excellent banking relationships. It would be very unusual for FSC to undertake to broker a deal without a clear indication of its success. FSC recognise that it is in neither parties intetrests to undertake a deal which will not achieve the financial objective.
What do clubs use this accelerated cash-flow for?
Most clubs generate substantial amounts of cash, however, not necessarily at the time they need it. Clubs typically use this accelerated cash-flow facility for a range of activities, including but not limited to; CAPEX, stadium expansion, player acquisitions etc.
What restrictions are placed on how clubs spend the money?
No restrictions are generally placed on clubs either by our banks or by FSC.
