With the growing ‘commercialisation’ of sports over the past 10-15 years, greater financing requirements have emerged.

There has been very significant investment in the construction of new stadia and sports venues, as well as significant re-development of existing facilities. Partly as a result of this, professional sports clubs, especially in football, are increasingly seeking alternative forms of financing – notably in terms of securitisation (i.e. borrowings secured against future revenue streams). In the mid 1990s, there were a rash of flotations, but now the equity markets are sceptical of these businesses. In addition, over recent years, there has also been significant M&A activity in the sports sector for sports-related businesses as the sector consolidates. As the sums involved in sports increase, it is ever more important for borrowers and lenders alike that rigorous due diligence – taking into account the unique dynamics and uncertainties of the sports industry – is applied.