Many organisations ran successful promotions at the 2014 World Cup. Most of them covered the risk of refunding customers with SportingWins.
We are the market leader in covering risks related to the results of professional sport, and at the 2010 and 2014 FIFA World Cups covered over €150m of risk for many of the largest electrical retailers in Europe, sports goods manufacturers and retailers, power companies, car manufacturers and other blue chip organisations.
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 consumer promotion:
- An electrical retailer runs a promotion offering customers buying TVs a full refund if Germany wins the 2018 FIFA World Cup.
- The retailer estimates that its liability to refund customers will be up to €20m, depending on sales.
- SportingWins is willing to cover the cost of Germany winning at a rate of 18%.
- SportingWins is also willing to offer flexibility so the client is covered for the maximum amount but pays only to cover their actual liability.
- The retailer pays SportingWins €3.6m (18% of the maximum liability, €20m).
- After the promotion, the retailer calculates its actual liability to refund customers as €15m.
- SportingWins refunds the retailer €0.9m, so the net cost to the retailer is €2.7m (18% of the actual liability, €15m).
- If Germany wins the 2018 FIFA World Cup then SportingWins pays the the retailer €15m.
- The cost to the retailer is therefore fixed at 18% of its liability to refund customers 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.