Balance Football Fund

BALANCE FOOTBALL FUND
A EUROPEAN REGULATED INVESTMENT FUND
FINANCING FOOTBALL

Strictly confidential
THE MARKET OPPORTUNITY
The Balance Football Fund (BF Fund) is a unique Private Equity Fund focus
exclusively on the football industry.
Around the world about $100 billion is spent on football each year. Over the past ten
years, football has become one of the world's fastest growing industries. It's huge, it's
global, and this is only the start. Annual growth in football revenues outstrips GDP in
almost every country. In some cases by a factor of three.
Taking into account the huge but also difficult economic context, we have decided to
develop an innovative and unique solution that is secure and fully compliant with all
national and international regulations (FIFA, UEFA, etc).
Futura Investment SA has decided to create the Balance Football Fund - a
European regulated Investment Fund - in order to become a dedicated financial
partner for the football industry.
The Balance Football Fund invests in the following areas: financing players’ purchase,
direct acquisition of minority/majority shares in football clubs’ capital, purchase of
players’ image rights and investment in football academies.

▪ Target Fund Size: Euro 50 million
▪ Investment Strategy:
✓ Financing Player’s Purchase - core activity
✓ Direct Investment in Football Clubs
✓ Purchase Player’s Image Rights
▪ Geographic Focus: Global
▪ Investment Period: 3 years
▪ Term: 6 years + 2 possible 1 year extension
▪ Target Return: 2,5x; 20%+ IRR
OVERVIEW

INVESTMENT STRATEGY
1) Financing the players’ purchase of football clubs
2) Direct acquisition of minority or majority shares in football
clubs’ capital
3) Purchase and direct management of football player’s image
rights

AGENDA
WHY TO INVEST IN FOOTBALL
WHY BALANCE FOOTBALL FUND
INVESTMENT STRATEGY
THE TEAM

THE BOOMING MARKET OF PLAYER
TRANSFERS
A huge market with a total amount of $1.36BN transfer fees paid during the summer
window 2014 by the clubs of the Big 5 – England, France, Germany, Italy and Spain.
Fonte: Fifa MS, Market Insights 2014
n°of players in USD million
Players engaged
Transfer spending
Number of players engaged and total
transfer fees paid by the Big 5
2012 2013 20142011
1.000
800
600
400
200
0
1.500
1.200
900
600
300
0

NUMBER OF PLAYERS ENGAGED
TOTAL TRANSFER FEES PAID
AVERAGE TRANSFER FEE PER PLAYER
2013
764
USD 1.35 BN
USD 10.1 MM
2014
773
USD 1.36 BN
USD 12.1 MM
(%)
+1,2%
+0,4%
+20,4%
Fonte: Fifa TMS, Market Insights 2014
Summer transfer window spending
BIG 5 - Summer transfer window in 2013 and 2014
INTERNATIONAL TRANSFER MARKET
TRENDS FOR THE BIG 5
2013
455
139
160
319
280
2014
507
491
147
120
93
2014 vs
2013
in USD million

BIG 5 – Total spending in summer transfer windows
in USD million
During the summer transfer window, England and Spain have recorded an increase in
total spending when compared to the same period in 2013. Both countries represented
73% of the total spending recorded by the Big 5 countries.
Fonte: Fifa TMS, Market Insights 2014
INTERNATIONAL TRANSFER MARKET
TRENDS FOR THE BIG 5
Spain Germany FranceEngland Italy
2012 2013 20142011
600
500
400
300
200
100
0

A high number of South American players are recruited every season by European
clubs. The most important markets are in Brazil and Argentina.
30
60
90
120
150
2011 2012 20132010
96
104
143
142
Market value of <26 years old players sold to Europe
from Brazil and Argentina
Fonte: KPMG report , 2013
in EUR million
TRANSFER MARKET
TRENDS IN LATAM

ENGLAND
€37.4 MM
RUSSIA
€20.3 MM
FRANCE
€55.0 MM
SPAIN
€59.3 MM
PORTUGAL
€4.0 MM
More then €200 MM transfer fees paid by european
football clubs during the transfer window 2013 for the
acquisition of <26 years old players from Argentina and
Brazil.
Fonte: KPMG report , 2013
BRAZIL
ARGENTINA
TOTAL
2009
529
239
768
Number of expatriates by country of origin
2010
555
234
800
2011
524
208
732
2012
515
188
703
Imports of football players from Latin American
football represent one of the most important
channel of talent players to Europe.
TRANSFER MARKET
TRENDS IN LATAM

Selling players provides clubs with
substantial revenues. The activity consisting
of betting on future valuation of acquired
players and selling them within a rather
short time frame (around 2 years) thus
offers exceptional profitability potential.
Examples from the transfer windows of the
last 3 years witness exceptional profitability
of player trading activity:
ACQUIRED FOR
2.5 MILLION
33 MILLION
26.5 MILLION
6.5 MILLION
45 MILLION
1 MILLION
14.7 MILLION
7 MILLION
SOLD FOR
40 MILLION
75 MILLION
95 MILLION
54 MILLION
80 MILLION
13.5 MILLION
94 MILLION
42 MILLION
GAIN
37.5 MILLION
42 MILLION
68.5 MILLION
47.5 MILLION
35 MILLION
12.5 MILLION
79.3 MILLION
35 MILLION
PROFITABILITY
1500%
127%
258%
730%
78%
1.250%
539%
500%
A PROFITABLE MARKET
PLAYER
DIEGO COSTA
ANGEL DI MARIA
LUIS SUAREZ
ELIAQUIM MANGALA
JAMES RODRIGUEZ
CHRISTIAN ERIKSEN
GARETH BALE
JAVIER PASTORE

The largest football player transfers during the transfer window 2014:
PLAYER
ALEXIS SANCHEZ
CESC FABREGAS
DIEGO COSTA
ROMELU LUKAKU
ANGEL DI MARIA
ELIAQUIM MANGALA
ANTOINE GRIEZMANN
LUIS SUAREZ
TONI KROOS
JAMES RODRIGUEZ
MEHDI BENATIA
CIRO IMMOBILE
HAKAN CALHANOGLU
ALVARO MORATA
JUAN ITURBE
KOSTAS MANOLAS
FROM
BARCELONA
BARCELONA
ATL. MADRID
CHELSEA
REAL MADRID
PORTO
REAL SOCIEDAD
LIVERPOOL
B. MUNICH
MONACO
ROMA
TORINO
HAMBURG
REAL MADRID
VERONA
OLYMPIAKOS
TO
ARSENAL
CHELSEA
CHELSEA
EVERTON
MAN. UTD
MAN. CITY
ATL. MADRID
BARCELONA
REAL MADRID
REAL MADRID
B. MUNICH
B. DORTMUND
B. LEVERKUSEN
JUVENTUS
ROMA
ROMA
PRICE (€)
44 MILLION
36 MILLION
40 MILLION
44 MILLION
75 MILLION
54 MILLION
30 MILLION
95 MILLION
30 MILLION
80 MILLION
30 MILLION
19 MILLION
14 MILLION
20 MILLION
22 MILLION
13 MILLION
PREMIER LEAGUE
PREMIER LEAGUE
PREMIER LEAGUE
PREMIER LEAGUE
PREMIER LEAGUE
PREMIER LEAGUE
LA LIGA
LA LIGA
LA LIGA
LA LIGA
BUNDESLIGA
BUNDESLIGA
BUNDESLIGA
SERIE A
SERIE A
SERIE A
CHAMPIONSHIP
LARGEST FOOTBALL
DEALS – 2014

A WINNING BUSINESS
MODEL
Resists the
economic crisis
Fully compliant
Investment Fund
No use of
leverage
Investment timing, industry specialization and active
management generate above market return performance, even
more during recessionary economic periods
The BF Fund is an innovative and unique solution that is
secure, legal and fully compliant with all national and
international regulations (FIFA, UEFA, etc.)
The BF Fund typically involve no financial leverage and use
only the equity at its disposal

OUR SOLUTION TO
FOOTBALL NEEDS
OUR FOCUS
Apart from a few top tier football clubs, clubs are lacking liquidity to buy players
THE PROBLEMS
✓ UEFA introduces financial sustainability requirements and financial fair-play
on recruitment among clubs
✓ FIFA enacted provisions aimed at restricting all practices related to Third
Party Player Ownership
OUR SOLUTION
Balance Football Fund becomes a privileged financial partner of football clubs in
player transfers

OUR SOLUTION TO
FOOTBALL NEEDS
OUR PRODUCT
A unique product with the following features:
✓ Player is the underlying asset:
Clubs receive financial support to finance player purchases
✓ Gains generated on underlying players’ transfers are shared:
Performance is indexed to the value of underlying player(s)
✓ Guaranteed repayment of capital invested:
By clubs’ receivables, ticket sales, media rights, cautions etc.
✓ Average investment horizon: 3-4 years:
Products’ bearing 5-6% interest for a max of 5 years
OUR ANSWER
Professionalism to an inefficient and fragmented industry

THE FUND – IDEAL INSTRUMENT TO INVEST
IN FOOTBALL
Balance Football Fund is intended to spread the investment risk over a greater
number of underlying football clubs and football players.
BF
FUND
INVESTORS
FOOTBALL
CLUBS
FOOTBALL
PLAYERS

• audit on the economic situation of the clubs
• audit on the financial standing of the clubs
• player development know-how of the clubs
• clubs’ ability to generate financial gains on transfers
• age between 18 and 26 years
• being regularly selected to national junior teams
• favorable contractual situation
• professional football training in a certified centre
Careful selection
of
football clubs
HOW WE SELECT OUR
FOOTBALL INVESTMENTS
• financial fair play matching
• analysis legal environment of the clubs
Evaluating the
potential of the
players
Legal
Due Diligence

HIGHLY SELECTIVE
INVESTMENT PROCESS
Deal Screener
Priority
Opportunities
Due Diligence
Investment
Board
Active
Monitoring
OPPORTUNITY
IDENTIFIED AND
LOGGED INTO DATA
BASE
CONSENT TO PROCEED
WITH
FURTHER EVALUATION
INTENSIVE BOTTOM-UP
EVALUATION OF CLUB
AND PLAYER
SYSTEMATIC PROCESS
TO
ENSURE PROGRESSION
FORMAL PRESENTATION
OF INVESTMENT CASE
Proactive approach and
players’ scouting
Prepare brief PIR memo
for Advisory Board
members
Engage in formal
discussions with the
Club
Prepare 10-15 page FIR
Isolate threats to
repayment of capital
Second opinion
from Advisory
Board members
Entire Investment
Team present
Consensus-based
decision making
Decision on
whether to proceed
or terminate
Decision on
whether to proceed
or terminate
Decision on
whether to proceed
or terminate
Decision on
whether to proceed
or terminate
Monthly monitoring
Detailed quarterly
portfolio review
Process
Aim: Obtain 100% transaction visibility but maintain high levels of discipline and selectivity

AGENDA
INVESTMENT STRATEGY
WHY TO INVEST IN FOOTBALL
THE TEAM
WHY BALANCE FOOTBALL FUND

FINANCING
PLAYERS’ PURCHASE
Financing the players’ purchase of football clubs:
▪ 5-6% annual interest + share of the gains realized in player transfers. The financing is
always indexed to the value of underlying players.
▪ The full repayment of the invested capital is secured by guarantees:
✓ Pledge over of future receivables related to any players transfer and image rights
✓ Personal guarantee granted by the club’s shareholder
✓ Joint and Several Guarantee given by the club’ shareholders
✓ Pledge over commercial receivables (sponsorship, TV rights)
✓ Pledge over Real Estate (if applicable) etc.
▪ All the gains generated by the partner club on the sale of the underlying players are
split according to the initial one-on-one negotiation.

BF
FUND
FINANCING
PLAYERS’ PURCHASE
CLUB
BORROWER
CLUB
BUYER
Transfer
payment
Share of the gains realized with the player transfer
Financing
Annual interest
Indexation
Player’s
sale

1. FINANCING
REQUESTED BY A
CLUB
FINANCING
PLAYERS’ PURCHASE
KEY PHASES OF INVESTMENT LIFECYCLE
2. INVESTMENT
SUBJECT TO
CONDITIONS
3. TRANSFER OF
THE UNDERLYING
PLAYER
▪ Audit of the partner club
▪ Evaluation of the potential
value of the underlying player
▪ Signing the contractual documents
▪ Conditions precedent to
investment
▪ Conditions precedent
satisfied
▪ Funding unblocked
4. TRIGGER EVENT 5. UNWINDING 6. POST-CLOSING
FOLLOW UP
▪ Player’s contract extension
▪ Sale of the player
▪ Free transfer or contract
termination
▪ Repayment of the invested
capital
▪ Sharing immediate gains
▪ Follow up on the bonus and
future gains
▪ Sharing the bonus and
future gains

DIRECT INVESTMENT
IN FOOTBALL CLUBS

DIRECT INVESTMENT
IN FOOTBALL CLUBS
Acquisition by the BF Fund of minority or majority shares of professional football
clubs:
▪BF Fund invests in football clubs participating in competitions with sufficient media
coverage
▪ Our team conduct an audit on the economic situation, financial standing and legal
environment of the clubs in order to limit potential risks related to the investments
▪ The final aim is the financing of player’s purchase by the club in which the BF Fund
has acquired an equity stake
▪ The funding will be through an interest bearing shareholder loan: 5-6% annual interest
+ share of the gains realized in player transfers
▪ The full repayment of the invested capital is secured by guarantees

PURCHASE PLAYER’S
IMAGE RIGHTS

PURCHASE PLAYER’S
IMAGE RIGHTS
Purchase and management by the BF Fund of the player’s image rights:
▪ Balance Football Fund invests in the acquisition of the player’s image rights and the
management through the following activities:
✓ Marketing, promotion and advertising
✓ PR and sponsorships
✓ Creation and management of promotional campaigns
✓ Social network management
✓ Organization of sports events and conferences
✓ Finding sponsors for events organization
✓ Sale and distribution of products related to marketing and advertising

STRATEGIC
ASSET ALLOCATION
BY
TYPE
BY
VINTAGE
BY GEOGRAPHY

WHY TO INVEST IN THE
▪ Investment Fund regulated by the Luxembourg financial service authority - CSSF
(Commission de Surveillance du Secteur Financier)
▪ Total transparency and full information of Fund data. Strictly complying with national
and international regulatory requirements (FIFA, UEFA, etc.)
▪ High professionalism and strong expertise through a team of professionals of prime
importance on the international football and finance scene
▪ Rigorous analysis and selection of the best football players worldwide
▪ Multi-industry investment strategy in the football sector
▪ Reduction of “managerial risk” through a Fund diversification
▪ Active portfolio management
▪ High Fund target return with an average investment period of only 3 years

DISCLAIMER
− This presentation (the “Presentation”) is not an offer prospectus as per Heading I, Title 2, Part IV of Legislative Decree no. 58/98, and it is
drafted and reserved by Futura Investment SA (“Futura”) for a limited number of qualified investors for information purposes only. This
Presentation may not be distributed, published or reproduced, in whole or in part, nor may its content be disclosed to anyone, except for the
recipients’ own professional consultants.
− The sole purpose of this Presentation is to provide some preliminary summary information on the Fund. Investors will have to evaluate for
themselves the legal, tax, financial and other consequences deriving from an investment in the Fund, including its advantages and risks. No
information contained in this Presentation should be considered a legal, tax, or financial opinion or evaluation, hence it is appropriate for
investors to seek the advice of their own professional consultants in these areas concerning the purchase, ownership or sale of shares in the
Fund.
− This Presentation has been drafted on the assumption that the legal and tax structure required for conducting the Fund’s operations has
already been completely put into place and that all the legal, tax, and all other necessary authorizations and approvals have already been
obtained. All the documentation pertaining to the Fund drafted after the necessary authorizations and approvals have been obtained will
supersede any information contained in this Presentation, hence investors must exclusively refer to any such further documentation.
− Futura has done everything reasonably necessary to ensure that the facts reported in this Presentation are materially true and accurate
and that there are no substantial facts whose omission could render any statement contained in Presentation deceiving. Futura assumes all
responsibilities in this regard. Some of the information contained in this Presentation has been gleaned from publications drafted by third
parties. Neither Futura nor any other third party assumes any responsibility for the accuracy or completeness of such information.
− Without prejudice to the foregoing, no statement or information provided in relation to a possible investment in the Fund can be considered
provided on behalf of Futura, and Futura, its parent companies, subsidiaries or affiliates, or its directors, executives, employees or agents do
not assume any responsibility in this regard.
− The delivery of this Presentation does not imply that the information contained in it is accurate at any time after the date that is has been
printed.

Balance Football Fund

Empfohlen

Empfohlen

Weitere ähnliche Inhalte

Was ist angesagt?

Was ist angesagt? (20)

Ähnlich wie Balance Football Fund

Ähnlich wie Balance Football Fund (20)

Kürzlich hochgeladen

Kürzlich hochgeladen (20)

Balance Football Fund