Season Tickets - New Century Finance
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Season tickets

Season ticketing receivables transactions are structured slightly differently from other commercial receivables of the club

  • Given the higher degree of operational risk that is taken in these transactions, the diligence required by the investor is more directed at the underlying operational and capital structure risk of the borrowing club
  • Relegation scenarios are mandatory part of the due diligence on the business model
  • The provision of funding on this basis requires a greater degree of due diligence than some other forms of receivables funding as there is not a pre-existing contract with a single debtor or an arrangement with the league or association that can be looked to as the single source of and basis for that receivable.

 

Terms Description
Face Amount Up to 50% of a single season ticket revenues, based on three year running average attendance
Security Perfected first charge over designated escrow account which receives as season ticket monies on a daily cash sweep. Additional collateral could include assignment of receivables, parent company guarantee, and debenture over the other assets of the club
Maturity Date Usually structured in consecutive 1-year transactions
Covenants Positive/Negative-Standard
Financial – required on case-by-case basis
Events of Default Standard Edom including cross-default and cross-acceleration
Indicative rate 8% to 15%
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