LEASING PROGRAM

What does this fund do?
NEW EQUITY FUND (NEF) was established by Future Capital Netherlands and is specifically designed for football clubs and players. The common objective is for players to generate additional income, providing clubs with extra liquidity.

What does it yield for the player?
Statistics indicate that within a 5-year period after retiring from their football careers, more than 65% of players face the risk of bankruptcy. Simultaneously, a range of personal problems arise, with the most significant one being the lack of a source of income. To socially and economically safeguard the player from these challenges, Future Capital's "Lease Program" offers a solution for both the player and the club.

Through this program, the player's income is secured even after retiring from their career. The aim is ultimately for the player, by utilizing the lease program after ending their career, to build a substantial financial buffer. This buffer can be used for future financial obligations or can be reinvested. As an example, an initial investment of €10,000,000 can yield a guaranteed result of €18,211,994.30 after 120 months.

NEW EQUITY FUND offers the following three constructions for your consideration:

1). NEF – LPF/AFC >>> LEASING PROGRAM FOR ALL FOOTBALL CLUBS
Every club naturally aims to maximize its player's potential, both in terms of on-field performance and the income the player generates for the club. This involves a long-term process whereby the club also has to make significant financial investments in its players. It's time for clubs to receive a bonus, in addition to a transfer fee, for these efforts.

The club can make an investment in Future Capital based on the commercial value of its players, where no contractual obligations to external parties exist. For example, if a player has a value of 10 million euros, the club can invest 2.5 million euros (25%) in bonds with Future Capital. The club enters into a lease agreement with Future Capital, with a lease period of 30 installments (months). Future Capital will invoice you a monthly amount of €100,000 for this. From now on, your investment will yield returns over 120 months within Future Capital's projects, with a ROI compensation of 8.2%. As a club, you can innovatively create additional financial space that continues to generate income.

Download our brochure

2). NEF – LPF/BFC >>> LEASING PROGRAM FOR BUYING FOOTBALL CLUBS
The transfer fee also includes a portion that serves as the player's profit share. For example, if the transfer fee is 25 million euros, the player is entitled to 10% of this amount, which is 2.5 million euros. If the player wishes, this amount can be used to purchase a bond with Future Capital.

The acquiring club will fulfill 90% of the transfer amount, totaling 22.5 million euros, to the selling club. The acquiring club will need to pay the remaining 10%, which is 2.5 million euros, to Future Capital through a lease arrangement over a fixed period of 30 lease installments (months). The acquiring club becomes the full owner only after all installments have been completed. This arrangement provides the acquiring club with additional financial flexibility to conclude other transfers and/or invest further in its own club. At the same time, it encourages its player to invest in building a financial buffer for post-career purposes.

2.1). NEF – CPF/BFC >>> CREDIT PROGRAM FOR BUYING FOOTBALL CLUBS
Securing a transfer is often a challenging aspect for clubs when considering their financial feasibility. While the NEF-LPF/BFC structure is a good starting point for some additional financial space, practical experience shows that clubs often require more financial flexibility than this 10%. Depending on the securities provided by the acquiring club, Future Capital can serve as your financial advisor.

Download our brochure

3). NEF – LPF/SFC >>> LEASING PROGRAM FOR SELLING FOOTBALL CLUBS
Assuming that your club utilizes our NEF – LPF/AFC structure, it's pleasing to note that this investment portfolio, as the selling club, provides you with the opportunity to withdraw these funds before the completion of the 120 months. Transferring this portfolio to the designated player could be an interesting option during a sale transfer when you could benefit from extra financial space. Transfer the portfolio as part of the player's profit share in the transfer amount. In other words, increase the transfer amount by the value of your portfolio and have it paid to you by the acquiring club. Meanwhile, we will credit this portfolio as an investment contribution for the player in Future Capital. This contribution will be used to build a buffer for the player upon the conclusion of his career. In addition to benefitting the selling club and the player, this structure also provides an advantage for the acquiring club. The more the player invests in Future Capital, the more the acquiring club can leverage a higher lease amount, thus generating more financial space for itself (NEF – LPF/BFC).

3.1). NEF – CPF/SFC >>> CREDIT PROGRAM FOR SELLING FOOTBALL CLUBS
Selling a player at the right moment and under the best conditions can be challenging, especially when the selling club needs financial space within a short timeframe. The NEF-LPF/SFC structure is a good starting point, allowing you to cash out your investment portfolio at Future Capital before the completion of the 120 months. Whether this payout is sufficient to meet your needs at that moment is, of course, a secondary consideration. Avoid selling your player for too low a transfer amount by making a hasty decision. Depending on the securities provided by the selling club, Future Capital can act as your financial advisor.

Download our brochure