The Alliance Sports Fund cell is focused on providing financing solutions to professional football clubs within the English Football League.
Our unique strategy is to fill the vacuum that has been created by the sector's current financial challenges through strategic utilization of our resources and experience, providing innovative and bespoke financial solutions to clubs.
Key areas where clubs require support:
- Transfer Factoring
- Bridging Finance
- Solidarity Payments
- Season Ticket Sales
- Short-term Emergency Finance
The Fund will provide clubs with immediate access to working capital, improving cash flow and reducing the impact of late payments. Bridging finance, on the other hand, provides short-term financing to clubs to help bridge the gap between transfer fees and their completion, which can take weeks or months.
We believe that lending to certain football clubs is a prudent investment decision for a number of reasons. The selected teams will have a well-established track record of success, as well as favourable debt/asset ratios. Additionally, the revenue streams for these teams are diverse and robust, ensuring a very attractive risk/reward ratio.
One of the key incentives for investing in football clubs is also the exceptional returns that are on offer, and as a result, the fund has the ability to provide its shareholders with returns that are seldom found with more traditional investments.
The minimum expected yield on secured commercial sports loans, within the football sector, is in excess of 11% per annum.
This is typically higher than traditional investments such as bonds or even equities, making it an attractive option for those looking for a very respectable return, whilst remaining heavily focused on risk mitigation.
We understand that some investors may be hesitant to lend money to sports teams due to the perceived risk. That's why we take great care to ensure that our loans are properly secured. Typically, our capital is secured by a charge on the assets of the club, so in the unlikely event of default, our investors' capital is protected.
The success of our commercial sports lending cell is due in no small part to the extremely broad network of contacts our co-founders have within the sector. They have personally made numerous loans to football clubs and have a deep understanding of the unique financial needs of these organisations.
Considering the current lack of competition in this sector, the growth opportunity for the fund is enormous. We are well positioned to take advantage of this opportunity, and are confident in our ability to provide our shareholders with strong returns for years to come.
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