London Exchange Group launches professional sports and entertainment investment exchange

By Bird Consultancy   |   30th March 2017

London Exchange Group launches professional sports and entertainment investment exchange for UK Retail Investors.

As part of the ongoing development of the London Exchange Group (“LEG”), and following the successful launch of London Property Exchange, LEG are now offering direct market access to exchange-traded products linked to value and performance of professional sports receivables and entertainment royalties.

For the first time ever, the owners of commercial sports, film and music rights can sell contracted royalties and receivables to a broad pool of Retail Investors through a dedicated trading venue; the London Exchange Marketplace (“LEX”).

Commenting on the announcement, LEG Executive Chairman and founder Ray Ranson said:

“With a growing demand from yield-hungry investors and the exponential growth in online financial marketplaces, we believe there is a significant opportunity to bring professional sports and entertainment together with the realities of alternative finance”.

Retail Investors can become members of LEX and utilise their Self-Invested Person Pension (SIPP), Small Self-Administrated Scheme (SSAS), Individual Savings Account (ISA) wrappers or a personal account to buy and sell professional sports, film, music and property investments in primary and secondary markets.

Ranson adds:

“Our aim is to democratise investor access to professional sports, film and music royalties and receivables, thereby creating exchange-traded products in new asset classes that are uncorrelated with financial markets”

In recent years, the professional sports and entertainment industries have benefited greatly from the advancement in broadband technology and digital platforms.

Sports, film and music fans around the world are now viewing content, buying merchandise and consuming digital platforms to stream sports, film and music content at ever-increasing rates.

However, since the financial crash most traditional banks have withdrawn from the sports and entertainment sector, leaving a significant gap in the market.

Professional sports teams are traditionally asset-rich and cash-poor, with ‘lumpy’, unpredictable cash-flows linked to sporting performance.  As a result, selling future contracted receivables is an attractive proportion for many sports team owners.

London Sport Exchange Managing Director and former English Premier League executive Brian Phillpotts says:

“We intend to build an online sports and entertainment investment community and provide investors with the opportunity to buy and sell high-quality, asset-backed securities through electronic networks” 

To access LEX, Retail Investors will need to register at and self-certify in accordance with the UK Financial Conduct Authority (FCA) rules.

Members are able to buy and sell securities through an order-driven electronic broking system. Secondary market trades will only be settled by way of a cash transfer from the buyers account to the sellers account and registering the beneficial ownership of the relevant securities with the nominee.

Members will need to pre-fund a client-designated account as no margin or credit facilities are offered, and there will be no clearing or physical settlement of securities, which will remain lodged with the nominee.

LEG has appointed London based Reyker Securities Plc to provide independent treasury and nominee services to safeguard investors’ accounts and investments.

LEG is an alternative asset manager and agency broker, which was formed in 2003 and has been authorised and regulated by the FCA since 2006.