‘Trade in Sports’ is a Swedish company specializing in sports investments. It is new financial service company focusing on the ‘opportunity to invest in actors in the sports industry’. Many actors in the sports industry lack external capital. Therefore, this financial service acts as a marketplace where investors and actors (teams and individuals, incl. race horses) can find each other. As an example, investors can buy shares in a golf player and thus inject money in the player (or his corporate set-up) so that he/she finds supplementary capital to participate in additional international tournaments to that the player can develop his game. That way, the player can finance the running costs (training and travel costs) in the first phases of the player’s PLC-curve, i.e. before the player sees high revenues. The ROI for investors may stem from negotiated percentages of the player’s future sponsor revenues or prize money.
The idea is based on presenting the investment potential to a broad part of sports fans, which will help to underpin and support the brand of the player or team and hence make it more appealing for sponsors to join. Moreover, the idea highlights the fact that sports entities find it hard to become or stay competitive without the proper resources, i.e. financial backing. Sports fans may also perceive this opportunity as an exciting alternative to sports betting.
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