Finance: European clubs form a securitisation fund worth €66.7m

Clubs of the five major European championships (Barclays Premier League, Liga BBVA, Bundesliga, Serie A TIM and Ligue 1) as well as the Liga NOS have formed a mutual securitisation fund -- also known as asset-backed securities (ABS) -- from their receivables, which have then been sold as bonds to US investors for $72.99m (€66.7m), according to the Spanish business daily Expansión on 27/01/2016.

The issued bonds are backed by the future transfer and audiovisual revenues of the clubs. They will yield an average return of 3.73% per year to investors (their expiry date was not disclosed) and carry an A rating (low risk, the third best score in the grading system) by the rating agency KBRA (Kroll Bond Rating Agency).

XXIII Capital Limited, a company founded in 2013 and based in London (ENG), manages this securitisation fund, called "XXIII Capital Financing 1". The list of clubs that have transferred receivables to this fund remains confidential, however Club Atlético de Madrid (Liga BBVA) and SL Benfica (Liga NOS) are involved, according to information gathered by Expansión.

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