How and why are football clubs using Green Bonds, and how do they actually work?

The important question of how the sustainability of football, from both a financial and environmental perspective, in the near future, can often be overlooked once the squads for the next match are available.

With regard to football financing, I have noted in a previous LawInSport article1 how innovative methods of raising capital have come to the fore in recent years with football clubs’ bond issuances to raise finance for particular projects such as the AFC Wimbledon “Plough Lane Bond” or indeed the so-called “POSH Bond.”2 Among other terms, this would see an increase in interest rate repayments to the bondholder should Peterborough gain promotion to the Championship by 2026/2027.

With the ever-increasing scrutiny over the financial sustainability of football clubs, it begs the question whether the issuances of “green bonds” may become more widespread moving forward. This article examines:

• What are green bonds?
• Why are green bonds attractive to investors?
• How to know which green bonds are credible?
• FC Barcelona’s green bond