A Guide To Financing Football Clubs: Part 1 – Debt Finance

Finance is a key aspect of football today. Increased professionalism, competition and regulatory requirements have encouraged clubs and leagues to source finance to survive and thrive. However, the pandemic has squeezed already tight balance sheets and forced clubs to find increasingly complex methods to protect their financial health.

This article series explores investment and finance in football.  It is split into three parts, which will examine in turn: (1) debt finance, (2) equity finance and ownership models, and (3) future trends in football finance. 

Part 1, below, begins with a brief discussion on why clubs raise finance and who the investors are, to frame the substantive parts.  It then examines debt finance through:

• Working Capital Facility - For example, Southampton’s long-term corporate finance with MSD Holdings, secured by a debenture over the business;

• Receivables - For example AFC Bournemouth using the £12,000,000 instalments due from Aston Villa in relation to the transfer of Tyrone Mings, as security for a term loan from Macquarie.

Part 2 – Equity finance and Ownership Models, is available here.

Part 3 - Future trends in financing of football clubs, is available here.