Institutional private credit lenders have become a “significant part” of the football finance landscape, reflecting the search for new deployment opportunities by investors and the growing sophistication of football itself, according to PGIM.
Josh Shipley, head of PGIM’s European private credit business, called the “modern” football club “a capital-hungry enterprise navigating increasingly complex financial demands”.
He observed that non-bank lenders, particularly private credit firms, are stepping in “to supplement and complement the offering of traditional lenders” amid a shift on both the supply and demand sides of the market.
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He noted that, on the supply side, banks have become more constrained by regulation, balance sheet limits, and a preference for shorter, standardised lending, which means they are often “ill-suited to bespoke financings linked to sporting performance or long-dated infrastructure”.
Meanwhile, private credit as an asset class has matured, with investors seeking new deployment opportunities “as traditional sponsor-backed activity slows”.
“Football, underpinned by global demand, rising enterprise values, and tangible assets such as media rights, stadiums, and brands, has emerged as a natural fit for institutional capital,” Shipley explained.
One the demand side, football has become increasingly sophisticated, with clubs employing institutional-grade finance teams, and engaging “proactively” with capital markets, while European leagues have “encouraged greater financial discipline at a club level”.
“This has created a natural alignment with private lenders who are able to underwrite complexity and structure around specific assets or revenue streams,” he added.
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Shipley noted, however, that banks have not retreated altogether and that they continue to provide revolving credit facilities or working capital lines, while private credit delivers longer-dated, structurally flexible capital.
“Over time, the increasing participation of institutional capital has coincided with a material re-rating of European football assets. While revenue growth has been an important driver, a significant share of enterprise value expansion has been supported by higher valuation multiples, reflecting improved governance, professionalisation, and greater investor confidence,” he said.
Shipley highlighted the importance of infrastructure financing as European clubs seek to modernise their stadiums to keep up with their global peers in terms of “size, modernity and commercialisation”.
“Financing these assets requires long tenors, flexible amortisation, and structures that recognise the relative stability of ticketing and hospitality income, even when on-pitch performance fluctuates,” he added.
However, he said risk is “an unavoidable factor” in football financing, citing the possibility of relegation, performance volatility, and regulatory change, which have “material implications” for cash flows and valuations.
“A successful credit approach needs to acknowledge these risks explicitly and mitigate them through appropriate leverage, diversified collateral pools, and robust covenant packages,” according to Shipley.
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