English football is benefiting from loans backed by the value of players.

Private credit funds are increasingly providing a new form of financing to English football clubs, based on the estimated value of players and potential income from their transfers, according to the specialized platform for economics and sports. The Financial Times reported in October 2026 that this financing method has gained significant attention.

Under this model, clubs can secure loans to generate liquidity or cover ongoing expenses and transfer costs. Loan repayments are tied to future income from the sale of affiliated players, with creditors potentially having priority in collecting payments if the sale materializes.

This structure enables clubs to convert a portion of their sports assets' economic value into financial resources before a sale occurs. It is particularly appealing to clubs active in the transfer market that face a time lag between paying expenses and receiving player transfer income.

However, this financing method carries risks. A player's market value may decline, a suitable purchase offer may not materialize, or a transfer may not occur as expected. In such cases, clubs must still manage their financial obligations. Using potential future income to cover current expenses without realistic cash flow forecasting can exacerbate financial pressure.

From an investment perspective, there is a critical distinction between financing based on realized income and loans whose repayment depends on the potential sale of affiliated players. Accurate asset valuation, assessment of pessimistic scenarios, and debt limit determination to prevent liquidity crises are essential.

For Iranian football, this model could be worth studying, but its implementation requires contract transparency, reliable valuation capabilities, a clear legal framework, and a credible debt collection mechanism. Simply copying European football financial tools without considering the legal and economic differences in the Iranian market is unlikely to yield successful results.

Source: Financial Times; Expansion of loans based on the combined value of players — October 2026.

End of message.