Um…who’s crazy now?
Buttonwood reports on the emergence of new, exotic asset classes such as…the football transfer market. Ie essentially providing venture capital for the development of new football players:
The football idea involves providing money to second-tier clubs (not Chelsea or Arsenal) to buy stakes in younger players. The fund then reaps a share of the rewards when the player is sold later in his career (footballers generally become more valuable as they approach their mid-20s). Why should clubs agree to this? Because they are usually short of money and can buy new players only by selling existing ones. By creating shares in their footballers, clubs can realise some of the equity in their human assets, without damaging the prospects of the team.
Sports as alternative or exotic beta? Sure.
