Emirates NBD launches "Hero Global Football Fund"

With this move, Emirates NBD has become the latest Middle Eastern institution to target the global football sector which is worth more than $20bn, and add it to its investment portfolio.

In addition, as part of its commitment to invest in the development of football in the UAE, the Fund has reached an agreement with the Al Ahli Club to identify promising players for further training and development through the Fund and its associates.

Emirates Investment Services Ltd (EIS), a subsidiary company of Emirates NBD, helped to structure the Fund with key personnel providing input as part of the Investment Committee of the sub manager.

The Fund is set up as an expert unit trust fund in Jersey and will have a life of five years.

The trust has appointed an investment manager which will draw on the football expertise of an Advisory Board.

The Advisory Board is comprised of David Davies, OBE, the former Executive Director of the FA, David Elleray, the former top-flight referee, and Alan Hansen, the former Liverpool captain who played more than 600 games for Liverpool, winning 17 major honors.

He is recognized as one of the foremost football pundits.

"Middle East investors are seeing the value of the sports industry, in general and the football sector in particular, and we're excited to build on that." said Rick Pudner, Chief Executive Officer of Emirates NBD.

"At Emirates NBD, we strive to provide our customers and stakeholders with innovative products that add value to their investment portfolios. Now, through the Hero Global Football Fund, Emirates NBD can show its clients that you don't have to be a billionaire to invest in this booming industry and, at low minimums, you too can participate in the transfer market which has shown itself to be a huge growth area of the game."

The Fund will recruit mainly young players from around the world but especially from Africa, South America and the Far East.

The Fund makes a profit by selling players' registrations and other economic benefits, such as image rights, to professional clubs.

The Fund has also made a private investment into the Glenn Hoddle Academy, a specialist academy set up by the former England player and manager for young players who have been released by their clubs.

Hoddle and his team of full-time coaches will nurture and develop their talents before releasing the players to clubs around the globe.

Through the Fund, investors can benefit from the rapid growth of the football industry, which saw the main European leagues earn more than 13 billion euros in 2006.

The Fund targets a minimum internal rate of return (IRR) of 10%, and, although returns are likely to fluctuate, Jamal Bin Ghalaita, General Manager for Consumer and Wealth Management at ENBD, stresses that the success of the Fund is not linked to finding a "star" player.

"The business model is realistic, assuming that two thirds of players will not become professionals. Of those that do make it, many will join second-tier clubs. The financial success of the fund does not depend on finding the next David Beckham: rather, on producing a steady flow of competent, professional footballers," he says.

Alan Hansen, member of the Advisory Board to the Fund says, "I am very excited to be associated with the Hero Global Football Fund. In the current financial climate, it will provide a vital source of funding for clubs worldwide to keep and develop their talent. As well as this, the Fund's partnership with the Glenn Hoddle Academy will make a huge contribution to nurturing young players and give them a second chance to pursue their football careers."

The Fund will attract and recruit players from across the world and also deal with clubs worldwide, although a prime focus is likely to be European clubs which are keen to recruit promising young players from Africa, South America and the Far East.

The Fund's focus will be mainly on European football as it is home to the world's richest leagues.

For example, in 2006, the English Premier League generated the highest revenue of any football league, with 2 billion Euros whilst the second-tier English League - the Championship - ranks as the sixth richest league in the world, with 460 million Euros in 2006.

Deon Vernooy, Head of Asset Management at EIS, says: "We believe we can generate above average returns from a fast-growing sector with little or no correlation to the wider economic climate. At the same time, investors will be making a worthwhile contribution to the game, through the development of young footballers."

Ahmed Al Kamali, Chairman, Individual Games, Al Ahli Club, welcomed the launching of the Hero Global Football Fund and said:

"football in the UAE has always been a popular sport and there are many promising local players who have a bright future. This initiative will take the local football to new heights as it motivates players to excel and reach the international stage. We are glad to join hands with Emirates NBD and we are looking forward to working closely with them."