Queens Park Rangers is offering fans and retail investors the chance to invest in the club’s £20m ($27m, €23.2m) training ground.
It is important to note that the QPR bond is an unsecured investment and is, therefore, not protected by the Financial Services Compensation Scheme (FSCS).
The five-year bond will be available through sports advisory and capital solutions firm Tifosys Capital and Advisory, which launched a similar product for Norwich City in March 2018 that raised £5m to build a new academy.
It also helped Stevenage Football Club offer up 12% of the equity in the club back in 2019.
The QPR bond will pay 5% gross interest annually, with an additional 3% gross in club credit redeemable on Football Tickets and merchandise.
The minimum subscription is £500, with no upper limit.
From a regulatory standpoint, the club is permitted to raise up to around £6.75m and has set a minimum threshold of £2m.
“But we believe that both the club’s forward momentum and the strength of the offering will mean that we raise significantly more than £2m,” the team said.
Investors will be paid a one-off 25% bonus if the club is promoted to the Premier League during the lifetime of the bond.
UK taxpayers will be able to invest in the bond through an Innovative Finance Isa.
Interested investors can pre-register from 30 September for priority access, with the offer due to close no later than 12 November.
What will the money fund?
According to West London-based QPR, the training ground will include seven specially constructed pitches for the first team and academy. Players will also have use of a performance gym, rehabilitation facilities, dining and recreation areas, classrooms and a performance analysis suite.
Club chairman Amit Bhatia said: “As a board, we have a clear vision for QPR: to deliver competitive and entertaining football while ensuring the club becomes self-sustainable.
“The new training ground is designed to underpin a renewal of the footballing fundamentals at QPR, to enable the Club to compete more effectively on the pitch and to help attract and develop the best talent. Once developed, it will offer cutting-edge facilities for QPR players of all levels – a key aim of this project is to accelerate the development of young talent.
“Supporter involvement and participation have always been at the core of QPR’s values. As a Board, we are fully behind this offer and believe that the QPR Bond can play a crucial role in further strengthening the connection between QPR and its passionate fans, and in bringing new investors and fans to the club.”