- Debenture (sport)
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For other uses, see Debenture.
In sport, a debenture is defined as a certificate of agreement of loans which is given under the company's stamp and carries an undertaking that the debenture holder will get a fixed return (fixed on the basis of interest rates) and the principal amount whenever the debenture matures. The terms may also include ancillary benefits such as an option to buy tickets at a favourable price, as well as or instead of interest.
A large number of sporting organisations have issued debentures to raise money, to allow their fans to gain a financial stake in the club, and to foster a sense of community.
Contents
Tennis
The organisers of the Wimbledon Tennis Championships, The All England Club, issue their debenture holders a ticket for each day of the tournament. Furthermore, only debenture holders are permitted to sell their tickets to third parties.
In 2007 a group of debenture holders in the All England Club created the first website allowing debenture holders to sell tickets directly to members of the public. Formerly, most tickets sold to the general public were sold by ticket touts, who had purchased them from debenture holders for considerably less. The new website allows debenture holders to sell their own tickets without paying a middle man, thus making the tickets themselves considerably cheaper for consumers.[1]
Rugby
A rugby debenture is somewhat different as, in the most part, no money in the form of interest is returned to the lender but the rights to obtain tickets for a seat in that ground. The exact terms of the debentures vary from issue to issue but will be covered in the main here. Charlton Athletic also used this financial method to aid their move back to The Valley.
Welsh Rugby Union
These debentures carry no interest on the amount invested and the advantage of holding said debenture is the right to obtain a tickets at the Millennium Stadium the home of the Welsh Rugby Union where Wales play in the Six Nations Championship.
The serial numbers on the debentures denominate the expiry date (although some are renewable and / or renewed earlier), starting with:
Certificate starts with: Expiry Date Surrender Value 05 01/03/2021 £50 100 01/03/2021 £100 200 01/09/2028 £200 300 01/09/2035 £500 410 31/08/2024 £5000 420 31/08/2024 £3750 430 31/08/2024 £3950 440 31/08/2024 £3950 450 01/09/2027 £5000 460 01/08/2030 £3950 470 01/09/2030 £6000 The WRU has changed some of the numbers during the term of the debenture.[2]
Rugby Football Union
These are issued by the RFU and permit the holder to 10 years rights to the ticket issue; they are transferable and the principle sum invested is returned 75 years from date of issue.
An RFU debenture confers on the debenture holder the right to purchase, at face value, one ticket for Rugby Union events at Twickenham Stadium for a given period, currently 10 years (with the exception of a small number of business debentures in the South Stand which confer ticket rights for 15 years). A debenture is fully repayable, currently after 75 years, but bears no interest.[3]
The following is the current debenture issue:
Date of issue Number of Private and initial cost Number of Business and initial cost 2000 1269 @ £3950 418 @ £12000 2001 1068 @ £3950 216 @ £12000 2002 868 @ £4350 28 @ £12000 2003 3751 @ £4750 135 @ £12000 2004 1052 @ £4750 28 @ £12000 2005 2314 @ £5250 58 @ £12000 2006 3295 @ £6000 279 @ £14000 2007 102 @ £14000 0 2008 1000 @ £6750 96 @ £14000 Other sports organisations
Other sports organisations which issue debentures in a similar fashion include:
- Arsenal Football Club
- Donington Park
- Hampden Park
- Millennium Stadium
- Murrayfield Stadium[4]
- Nottinghamshire County Cricket Club
- Twickenham Stadium
- Wembley Stadium
Not all sporting debentures provide an entitlement to free tickets. Some organisations, such as the Millennium Stadium, merely give holders the right to purchase a ticket for events.
See also
- Personal Seat License, an analogous concept amongst US sports franchises
References
- ^ "Wimbledon Tickets – Tennis Tickets for Wimbledon 2010". Wimbledondebentureholders.com. http://www.wimbledondebentureholders.com/. Retrieved 2010-04-30.
- ^ "Rugby Debenture shop and other debentures bought and sold". Debentureshop.com. http://www.debentureshop.com. Retrieved 2010-05-05.
- ^ Twickenham Debentures
- ^ "Murrayfield". www.debentureshop.com. http://www.debentureshop.com/stadium.php?Stadium=Murrayfield. Retrieved 5 May 2010.
Categories:- Cricket terminology
- Rugby union terminology
- Sports terminology
- Sports venues
- Credit
- Loans
- Tennis terminology
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