The market
Where the exposure sits, and who carries it.
Banks and financial institutions finance the business of sport. Insurers can carry the credit risk that comes with it. Between the two, a market has formed, and it turns on one thing: a reliable read of the counterparty.
The exposure.
Loans, factored transfer receivables, broadcasting and sponsorship contracts: financial institutions fund the business of sport, and carry the counterparty's credit risk on their books until it is repaid.
The relief.
Regulatory capital is consumed by that exposure. Insuring it with a highly rated carrier substitutes the sport counterparty's risk with the insurer's, and releases capital.
The read.
An insurer cannot carry what it cannot read, and almost no sport counterparty carries a public credit rating. Vault Partners produces the consistent, defensible credit view on which that decision can rest.
Why the read is the hard part.
Generalist models read a sport counterparty like any other company and tend to grade it harshly, while the sector's own payment history tells a different story. The gap between the two readings is where a specialist read earns its place.
Let's talk credit risk in sport.
For insurers and financial institutions across the London and US markets. Tell us what you are looking at, and we will bring the credit view.