Harlequins Wants To Raise £15m
Yes, rugby team Harlequins intends to raise £15m soon. It is not the first team to do so.
Many sports groups have tried to raise money to support their teams. How are they trying to get it done? They are going to issue a mini-bond to raise that kind of money. Like so many other sports groups, they are just tapping fans to keep the club alive.
Harlequins is a big club with such legacy. The club will be celebrating its 150th anniversary later this year. They have star players like Jamie Roberts and Chris Robshaw to add glamour to the team. Initially, they were planning to raise £7.5m but later changed the amount to £15m when they realize that they needed more money.
As stated earlier, it’s nothing new when it comes to sports groups. Sports have been trying to raise money using innovative techniques. The problem lies with most banks is that they are unwilling to lend large sums of money. Also, if the team owner doesn’t want to give up equity stakes to other investors, raising money by tapping fans is the best strategy to get past the temporary lull period.
They will be offering Mini bonds to the fans. The thing with mini bonds is that you cannot resell it. And these mini bonds are not overpriced. As a fan, you can definitely afford them. It has been one of the popular ways to raise money from fans. Many clubs all over the world tried and tested this formula before. Let’s hope that it will work for the club like it did for other clubs. Wasps, another club in the premiership, raised £35m last year by offering mini bonds. The Jockey Club is another club which ended up raising £25m recently. So yes, many of these teams have tried this formula already.