    
 SOCCER INVESTOR WEEKLY
Issue 145
7 May 2003
Norwich Signs £15m Securitisation Deal
English First Division club Norwich City has signed a £15m securitisation deal with Schechter & Co, the club has announced.
The deal covers a 15-year period. The amount will primarily be used for the construction of the Carrow Road stadium's new South Stand.
The club has already received £7.5m of the total, of which £6m will be spent on paying off its bank overdraft and rescheduling the club's short-term debt.
A further £1.5m has been spent on a large redevelopment programme, which has included the development of the land used to build an adjacent hotel and residential properties, as well as the South Stand itself.
The bond is to be secured against ticket and hospitality income at the stadium, and also from sponsorship income and media revenue streams, representing the first 'whole business' securitisation for a football club.
This is the eighth club Schechter & Co has dealt with in the last year, which has included English Premier League clubs Newcastle United, Leeds United and Chelsea.
Stephen Schechter explained to Soccer Investor that he was "thrilled" with the deal, and elaborated on the club's new sound financial position.
"Out of all the deals I have been involved with for football clubs, this is the first time a club has looked to refinance its debts," Schechter explained.
"The club has previously been financed by Delia Smith and her husband [Michael Wynn-Jones] out of love.
"This is the second step of the club's redevelopment.
"What this deal shows is that there is funding available for clubs outside the [English PL's] top five."
Schechter added that this deal would put the club in a good position to gain promotion to the PL next season, either automatically or through the play-offs.
|
Schechter & Co. Limited