NCF has completed over 150 player transfer transactions using its proprietary structuring technology
- Player transfer transactions have two distinct hallmarks – (i) they are seasonal with the majority of the activity occurring between June to September and (ii) they represent the acceleration of a senior-secured receivable that typically carries a 24 month exposure horizon
- The investor’s risk assessment is focused on the buying club not paying the subsequent instalments on the contractually agreed dates. Offsetting this collateral risk is the preservation of football creditor status associated with the trade. This enables the obligation to retain super senior security throughout the life of the obligation
- In the unlikely event that the buying club did not pay its instalment payments on time, the investor has the right to approach the Premier League directly for payment. It is important to note that the Premier League does not differentiate between a selling club being an English club or a foreign club and hence all payments due from an English Premier League club are supported by this rule.
- Pricing on these transactions will vary based upon the underlying credit of the buying club. The current pricing thresholds are between 7-10%.
- Additional collateral protection (i.e., bank guarantee) would be required if the buying club is not based in the UK