Key Takeaways
- • Private credit funds are targeting English football clubs with a new form of lending known as "squad-value financing," according to the Financial Times.
- • Lenders plan to take security over receivables from future player sales, tying loan repayment to the transfer market rather than solely to club revenues.
- • The structure is described as novel, positioning player-backed debt as a potential new asset class for private credit investors.
Summary
Private credit funds are turning their attention to English football clubs, offering loans secured against the future transfer value of players, according to a Financial Times report. The lending structure, described by the FT as "squad-value financing," would give lenders security over receivables generated from future player sales.
The approach departs from conventional club financing, which typically relies on broadcast, commercial and matchday income. By taking security over expected transfer fees, lenders would link repayment to the performance of a club's squad and its ability to realise value from player trading. The FT characterises these deals as novel, reflecting the growing interest of private credit managers in illiquid, non-traditional collateral.
The source article provided limited further detail on deal sizes, participating lenders or specific clubs involved, and no additional perspectives on the transactions were available beyond the FT's own coverage. Readers should note that the report describes an emerging structure rather than a completed programme of transactions.
The approach departs from conventional club financing, which typically relies on broadcast, commercial and matchday income. By taking security over expected transfer fees, lenders would link repayment to the performance of a club's squad and its ability to realise value from player trading. The FT characterises these deals as novel, reflecting the growing interest of private credit managers in illiquid, non-traditional collateral.
The source article provided limited further detail on deal sizes, participating lenders or specific clubs involved, and no additional perspectives on the transactions were available beyond the FT's own coverage. Readers should note that the report describes an emerging structure rather than a completed programme of transactions.
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