How does the sports industry obtain finance? This is a complex question as there are multiple avenues to explore. Due to the high number of sport types, funding will differ across the industry.
Typically, in the UK, premier league football acquires revenue from team owners, sponsorship, entertainment and media contracts, merchandise, ticket sales and football funds. This is similar within the rugby field too, however often on a smaller scale. Cricket differs from the above as funds are generated from mostly match ticket sales and membership fees.
When it comes to international sporting events, these often include other forms of funding. The UK Olympics for example is funded by a government department, UK Sports – focusing on providing Olympians with a salary. The International Olympic Committee also funds a large part of the budget – USD 1.5 billion went towards the 2016 Rio de Janeiro Olympic Games. Other events such as the FIFA World Cup is both government and private sector funder. Often, the largest beneficiary of the funding/investments is transport infrastructure and construction of sporting facilities.
Here, at IntaCapital Swiss, we can offer those within the sports industry access to business capital by the means of Collateral Transfer. Those looking to build, expand or upgrade their sports clubs or facilities across any of the sectors can benefit from our financial services.
What is Collateral Transfer and how can it raise capital for your business? This financial facility is not new, and in fact, is becoming increasingly more popular. As the name implies Collateral Transfer is the transfer of an asset, in this instance a Demand Bank Guarantee, from one company to another. We have a network of companies that supply Demand Bank Guarantees for Collateral Transfer – recognised as Sovereign Wealth Funds, Hedge Funds, Private Equity Funds. These are referred to as Providers. The Provider transfers a Demand Bank Guarantee to the account of the beneficiary (company seeking capital) in return of a Collateral Transfer Fee.
Once the beneficiary has received the Demand Bank Guarantee on their account, they can with confidence approach their bank and present their application for a loan or line of credit, often referred to as Credit Guarantee Facilities. In most cases, the bank will happily approve this application, as they are being offered first-class security in the shape of a Demand Bank Guarantee.
From time to time a bank will reject a credit application despite the offer of a Demand Bank Guarantee as security. In this instance, IntaCapital Swiss will be able to provide alternative lenders or third-party lenders who will replace the bank and lend against a Demand Bank Guarantee.
The sports industry is complex when it comes to funding. However, there are alternatives available, which IntaCapital Swiss can facilitate. Over the years, we have facilitated project funding for new sporting facilities, club buyouts, golf courses and several other ventures. Collateral Transfer has become increasingly popular worldwide as it enables companies to obtain credit facilities when other financial institutions have rejected their applications.
At IntaCapital Swiss, we are Europe’s leaders in facilitating Collateral Transfer, so if your business requires project funding get in touch today. Our team of financiers and client relationship managers will offer advice, and should your business plan pass due diligence, a designated CRM will see your application through to fruition.