Clubs and national federations pay players success bonuses. When SportingWins takes the risk of paying the bonuses, the CFO can cheer on the team without having to worry about the cost.
We are the market leader in covering risks related to the results of professional sport, and have covered the risk of paying bonuses for seven major national governing bodies, plus a number of top flight football and rugby clubs.
SportingWins writes financial contracts, “Hedging Agreements”, which are clear legal contracts bespoke to each client and transaction, offering prompt settlement when payments are triggered and no need to prove loss. They are not contracts of insurance. To illustrate how they could work for a club or national association:
- Assume the Welsh Rugby Union has a £5m bonus payable to players and coaches if they win the Rugby World Cup in 2015.
- SportingWins is willing to cover the cost of Wales winning at a rate of 8%.
- The WRU pays SportingWins £400,000.
- If Wales wins the 2015 Rugby World Cup then SportingWins pays the the WRU £5m.
- The cost to the WRU is therefore fixed at £400,000 in all circumstances, and they can budget and plan accordingly.
Rates and amounts quoted are for illustrative purposes only.
SportingWins can cover bonuses and other financial risks associated with the results of leading professional sports including football, golf, rugby, tennis and cricket, as well as motor racing and major US sports. In addition, SportingWins can cover the financial risks associated with on-field under performance, such as relegation or failure to qualify for the Champions League or other lucrative events.