UK/EUROPE - Pensions funds will shortly have the opportunity to invest in another securitisation by a football club.
Market rumours suggest that a EUR100m (£61m) securitisation from an as yet unnamed German football club will be the first from newly formed securitisation specialists Schechter & Co. The deal is expected within the next couple of weeks.
A source close to the deal said: “It will open a few eyes across Europe towards this sort of securitisation.”
The deals work by clubs receiving cash from investors for a loan that is backed by future gate receipts and the stadium mortgage.
Leeds United, Newcastle United, Southampton, Ipswich Town and relegated Leicester City have also brought deals to the market bringing the total raised via this route to £253m. Tottenham Hotspur is also believed to be investigating a potential deal over this summer.
Former Lazard Asset Management managing director and head of debt finance advisory Steve Schechter has set up Schechter & Co to manage such cash generating deals for football clubs.
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