Lancashire CCC Launches Cricket Bond Scheme
Lancashire County Cricket Club has announced the launch a retail bond to support development of its Emirates Old Trafford, in a similar move that proved a huge success for The Jockey Club’s Racecourse Bond last year, which raised nearly £25 million towards the development of Cheltenham Racecourse.
The Lancashire County Cricket Club ‘Cricket Bond’ will be a five-year initial fixed-term bond offering 7% gross interest per annum for investments from £1,000 and aims to raise £3 million to help fund the development of a new four-star branded hotel to replace the existing Old Trafford Lodge.
The interest will be made up of 5% paid in cash and 2% in Credit4Cricket Units, which can be redeemed against the Club’s international and domestic tickets and hospitality products, including food and beverage packages and also Membership fees.
Lancashire County Cricket Club’s last financial year saw record operating profits of £3.54 million, providing the platform for the next phase of development.
Lancashire County Cricket Club CEO Daniel Gidney said: ‘We are proud that, in our 150th year, Lancashire County Cricket Club has an enviable heritage in an iconic location with cricket in our heart but business on our mind.’
‘Our vision is for Emirates Old Trafford to provide one of the best sports, entertainment and business experiences in world cricket. An attractive, contemporary hotel that will appeal to corporate visitors and private customers alike is central to this aim.’
The Jockey Club, whose own Bond scheme was shortlisted at the BT Sport Industry Awards 2014, has already started work at Cheltenham after surpassing its original target by almost £10 million.
Entries for the BT Sport Industry Awards 2015 opened yesterday, find out more here.
Development has been underway throughout 2014 with racing continuing as normal when the course’s new season starts at the Showcase Meeting on 17th and 18th October. Various elements will open once ready on an ongoing basis before the full grandstand is completed in time for The Cheltenham Festival in March 2016.
The Jockey Club’s 7.75% interest Racecourse Bond offered 4.75% cash interest and 3% in Rewards4Racing points to redeem against tickets, upgrades, food, beverages and bespoke experiences.
Commenting on the Lancashire CCC retail bond offer, Paul Fisher, Group Managing Director of Jockey Club Racecourses, said: ‘The Cricket Bond is offering a combination of cash and rewards and has launched giving a clear rationale behind what investors’ money will go towards.’
‘That’s an approach that proved a winner for us with our Racecourse Bond last year. We know one of the most common and important questions potential investors ask themselves is ‘will my money be safe’, so I expect to see Lancashire CCC addressing this in their communications, emphasising this is their 150th anniversary year.’
Commenting on anything The Jockey Club would have done differently, Fisher added: ‘We capped the maximum investment at £100,000 because we didn’t want people to put in sums that might make them feel they were buying part of the company rather than investing in a product.’
‘Looking back I think we could have safely doubled the maximum without venturing into that territory and we had private individuals contacting us to see if they could make £500,000 investments we had to turn down.’
