Written by Adriana Hamacher    Tuesday, 04 May 2010 14:06   
Sporting Debentures: Just the Ticket?

Sporting organisations issue debentures to allow fans to gain a financial stake in the club, they also guarantee a seat to watch your favourite team. Making a profit is not a sure thing but it is a legitimate way to resell tickets.

The Rose Bowl in Hampshire is the latest stadium to issue a batch of debentures, with a 5pc fixed rate of interest. Costing between £2,500 and £5,000, the debentures entitle the holder to purchase a ticket for 20 days of cricket matches every year. These tickets can also be resold. At the end of seven years, the Rose Bowl's scheme fully repays the initial investment. An initial batch of 80 "Platinum" debentures worth £6,000 each sold out in a matter of weeks.

But Justin Urquhart Stewart, director and co-founder of Seven Investment Management, advises caution:

"If someone else develops another ground, you could find yourself with something that was an international site once but is no longer. You could see clubs going bust and your debentures could disappear as well. You should remember it's still a sport – don't get your investment and your hobbies mixed up."

But if you choose wisely, there are some debentures where it’s possible to net a sizeable sum. For instance the All England Lawn Tennis Club, which funds Wimbledon, offers debenture holders tickets for every day of the tournament.

Though ticket-touting is illegal at Wimbledon, these seats can be traded and offer the potential of steady profits. Pairs of tickets to the 2010 men's final on July 4 are currently trading for £5,350.

Based on an article which appeared in the UK’s Telegraph last week.

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