I put this presentation together while I was doing my LL.M at The University of Sydney.
I was watching the London 2012 Olympics and I thought this presentation would be appropriate. I hope proves useful!!
Securitisation is used for a number of reasons, including risk transfer, balance sheet management, funding diversification and lowering funding costs.
Though securitisations were first applied to mortgage loans, later, in the 1980s, its techniques where applied to credit card receivables and auto loans. Today, these asset classes have grown into their own markets in which an extensive and subtle array of financial products has developed. Thus, nowadays, new assets, such as pharmaceutical patent revenues, trademark leases or future tickets receipts, are part of these transactions.
Apparently, the key seems to be whether the asset is capable of commoditization: if its cash flows are sufficiently stable and predictable and if the asset class relates to a service provided en masse to the public its chance of survival and promulgation increase.
One of the markets which has used securitisations is sports, particularly football clubs in the United Kingdom.
Since 1999 English football clubs such as Newcastle, Southampton, Leicester City, Ipswich Town, Leeds United and Arsenal FC have used securitisations as a devise to raise millions of pounds.