Hedge funds have invested in wine, whiskey and movies in pursuit of returns that outpace stocks and bonds. Now they’re taking on an even riskier bet – the search for soccer’s next Wayne Rooney.
For $470,000, investors will have the chance to buy a piece of the next potential superstar. Two U.K.-registered funds, Hero Investments and Sports Asset Capital, plan to buy stakes in the contracts of younger athletes, then grab a slice of the transfer fees clubs pay to obtain them.
The funds expect to profit from a buying spree led by Chelsea Football Club’s billionaire owner, Roman Abramovich, who has helped raise spending on transfers by English clubs to a record $620.4 million this year. By taking part-ownership of players, they will help smaller clubs compete for talent with larger rivals, the funds say.
