Join Now | 
HomeAboutContact UsPrivacy & SecurityAdvertise
Soccer America DailySpecial EditionAround The NetSoccer Business InsiderCollege Soccer ReporterYouth Soccer ReporterSoccer on TVSoccer America Classifieds
Paul Gardner: SoccerTalkSoccer America ConfidentialYouth Soccer InsiderWorld Cup Watch
RSS FeedsArchivesManage SubscriptionsSubscribe
Order Current IssueSubscribeManage My SubscriptionRenew My SubscriptionGift Subscription
My AccountJoin Now
Tournament CalendarCamps & AcademiesSoccer GlossaryClassifieds
Hedge Funds to Invest in Soccer Player Contracts
Bloomberg, October 27th, 2006 5PM

MOST READ

MOST COMMENTED

Leave it to hedge funds to come up with new ways to invest. Whether it be wine, whiskey, commodities, or soccer players, if there's a high risk reward, you can bet there's a hedge fund out there willing to put money down on it. That's right, we said soccer players. For $470,000, two UK-registered hedge funds are offering investors the chance to buy a piece of the next superstar. How? Seems like Hero Investments and Sports Assets Capital, the two hedge funds in question, have taken one right out Iranian investor Kia Joorabchian's playbook: they're going to buy stakes in the contracts of promising young athletes, and then grab a slice of the expensive transfer fees clubs pay when they trade players who are still in contract. By taking part-ownership of up-and-coming players, in a similar vein to the way Joorabchian has invested in Argentine pair Carlos Tevez and Javier Mascherano of West Ham, the funds believe they will help smaller clubs compete for talent with larger rivals. ''It's fascinating, but you could easily burn your fingers,'' says Jacob Schmidt, founder of London-based hedge fund Schmidt Research Partners. ''Investing isn't about fun, it's about hard work. While I'm not against fun, the risk is that people who are amateurs might get involved.'' However, some fans will profit, while helping to bring more competition to the sport, the funds say. Read the original story...


No comments yet.

Sign in to leave a comment. Don't have an account? Join Now




AUTHORS

ARCHIVES
FOLLOW SOCCERAMERICA

Recent Section 2 Around the Net
Wenger: Vermaelen May Leave Arsenal    
Arsene Wenger says defender Thomas Vermaelen, who has attracted interest from both United and Barcelona, could ...
English FA Cracks Down on Gambling    
The English FA has instituted new rules that ban players and coaches from betting on any ...
Luis Suarez's Suspension Appeal Set for Next Week    
Luis Suarez's appeal to the Court of Arbitration for Sport (Cas) against a four-month ban for ...
Mexico Goalkeeper Moves to Malaga    
Mexico goalkeeper Guillermo Ochoa, coming off an excellent World Cup performance, has moved to Spain's Malaga ...
Germany Wins Another Championship    
Within three weeks of winning the World Cup, Germany won another title, indicating that its youth ...
New York City FC to Groom Players for Man City?    
Manchester City's chief executive Ferran Soriano says that the Premier League champion may use its MLS ...
World Cup Boosts German Beer Sales    
The World Cup is credited for boosting German beer sales by 4.4 percent in the year's ...
Glazers Selling selling 8 million Man United    
The Glazer family will make around $150 million by selling 8 million shares of its stake ...
Former Palestine Midfielder Killed in Bombing    
Former Palestinian national team player Ahed Zaqout has been killed by an Israeli bomb that hit ...
Neymar Aims to Be Fit for Barcelona Opener    
Brazilian star, Neymar, who fractured a bone in his back following a challenge from Colombia's Juan ...
>> Section 2 Around the Net Archives