Private credit funds are targeting English football clubs with squad-value loans based on the value of player squads, as exotic financing spreads into the sport. Discussions are growing among clubs and lenders, with London-based 23 Capital relaunching post-pandemic to offer such loans as a core product. These loans are sized according to squad value and may involve security over hypothetical receivables from potential player sales.
Lenders cannot force sales but gain first call on future receivables if a player is sold. Clubs in Spain, Portugal, Italy, France and Belgium have already used such financing. Premier League clubs accounted for 38% of the record €10.8bn spent globally on player transfers this summer, with six of the top 10 clubs by squad value being English.
English clubs outside the top flight spent €453mn this summer, up from €310mn last year. Fasanara and Tifosy have pioneered the model in Europe, extending loans up to a quarter of squad value. Burnley, owned by ALK Capital, is one of the few English clubs to have used player-value-linked structures, backed by a broader asset pool.
Source: Financial Times Companies · Summarized by HeadlinesBriefing