Racing Scores Big Win with Bond

* Raising Money for Sporting Infrastructure
* General Public Investment, Private Gain
* A New way of raising funds for sporting projects
The Jockey Club has raised £24.7 million (€28.9 million) for its Racecourse Bond, nearly £10 million more than was originally targeted when the offer was made public last month.
Money was needed for the further development of Cheltenham Racecourse and rather than going all to banks, the Jockey Club, which owns the racecourse offered the general public the chance to invest in the project but also in the sport they love.
Individual investments of between £2,000 and £100,000 were invited with a return of 7.75% over 5 years in cash and reward points.  It was an innovative approach to sports funding and one which has paid off.
It was the first time such a retail bond had been offered in British sport and there are lessons to be learned for Irish sporting projects similar to the national indoor arena spoken of by an Taoiseach Enda Kenny on Wednesday.
“Having a clear reason for raising these funds has helped,” said Jockey Club Racecourses MD Paul Fisher. “While the guarantee of a healthy fixed-rate return has been vital, people know their investment is also supporting British racing through our planned development at Cheltenham.”
The investor return on the deal is split 4.75% in cash and 3% in reductions and deals on tickets and horse racing events. The latter serves a double purpose in promoting further expenditure on the ground at events.
The success of the promotion was based on having a strong database of loyal supporters to go to, and on providing the right blend of financial and emotional return that stands very favourable comparison to other investments.
The cost of the National Indoor Arena would not be dissimilar to the development at Cheltenham and we are a sports mad nation which, according to some sources has substantial individual capital tied up in investments that could be put to better and more satisfying work while still protecting its value.
And if the National Arena was not engaging enough could the same approach not yield benefit for the proposed redevelopment of Leopardstown Racecourse, Pairc Uí Caoimh in Cork or many more.
If you would like to explore the possibilities with like minded individuals from sport and business contact us today and let’s see what might be possible.

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