IRISH investors and soccer fans may soon get the opportunity to invest directly in a dedicated fund which will invest in soccer clubs and companies who derive much of their income from soccer.
Singer & Friedlander, which began Britain's first soccer fund last week, is in talks with an Irish financial institution about replicating this fund for Irish investors, Singer & Friedlander Investment Funds chief executive Mr Tony Fraher has told The Irish Times.
Singer & Friedlander has developed The Football Fund from its operation in the International Financial Services Centre, and Mr Fraher described the introduction of the fund to British investors gas another first for the IFSC". He declined to reveal the identity of the Irish institution with which Singer & Friedlander is in discussion on a soccer fund that would be available to Irish investors.
Irish investors can already invest directly in stock market listed clubs such as Manchester United, Spurs, Millwall, Leeds, Southampton and Sunderland. Celtic - which was floated two years ago - has a sizeable Irish shareholder base over and above the estimated 14 per cent held by Mr Dermot Desmond.
The Football Fund begun last week in Britain aims to invest in soccer clubs in both Britain and Europe and also in companies who derive a large portion of their income from soccer related activities. According to Singer & Friedlander, the minimum lump sum investment in The Football Fund will be £1,000, with a regular monthly savings scheme from £50 per month. The fund being offered in Britain has an initial charge of 4.5 per cent, an annual management fee of 1.5 per cent and will pay initial commission to intermediaries of 3 per cent.
Detailing what it describes as "the business of football", Singer & Friedlander states that only 42 per cent of total income now comes from gate receipts. Sponsorship in the FA Premiership - £12 million this season - will be £38 million a year from next season. Pay per view TV - expected to begin in 1998 - is expected to provide up to £1 billion extra to the 20 Premier League clubs.
The promoters add that since January 1996, the shares of Manchester United, Spurs and Leeds United (Caspian) have almost trebled while Chelsea shares have doubled. Other clubs intending to come to the stock market include Newcastle United, Blackburn and Birmingham City.
As well as investing directly in clubs, Singer & Friedlander has indicated that the fund might invest in stadium companies such as Wembley, clothing groups such as Pentland, equipment companies such as Adidas and Hi Tec and media companies with extensive sports interests, such as BSkyB and Chrysalis.
