Team and Player Bonus

KAM Sports International are specialists in securing sports risk insurance
and hedging for football clubs globally. We have been at the forefront of
initiating this service to reduce clubs' financial liabilities at the same time
as enhancing performance.

Team and Individual Player Bonuses and sports risk insurance can now be used
according to new 2012/3 Football Association regulations.

Clubs can take advantage of insuring financial liabilities that arise providing
the insurer is Financial Services Authority regulated (or equivalent FSMA)

If you are contracted to pay out bonuses when you get promoted, qualify for
Europe or win a cup , make sure you get a quote to have the bonuses insured.

The new FA regulations from 2012/3 relating to covering football bonus payments are straightforward.

 Clubs are permitted to enter into Contracts of Insurance in respect of the following:
  • positive competitive outcomes (i.e. promotion, qualification for UEFA competition)
  • collective and individual bonuses (i.e. squad & individual promotion bonuses).
KAM Sports International can assist clubs with their insurance and conditional sports risk coverage.


We are able to access significant risk capacity (£10 Million or more)
with legally enforceable contracts and payment within 7 days into
the client's bank account.

How Clubs Benefit

We gather information from clubs and produce a report that enables insurers to
assess their risk in providing coverage. Our insurers then give us quotations based
on these reports. We analyse these quotations and assist the club in contracting
directly with the sports risk insurer.

These reports can be based on player or team bonuses. We can also provide
consultancy to clubs on player bonus packages which are insurable, therfore
allowing clubs to acquire players within a wage structure that suits the club.

Some example bonuses for performance where the club can reduce
wages can be insured;

Premier League Club A offer a bonus of £1M to each player for finishing
in the top 6 of the Premier League. Hedging is £181,000 per player or 
£3,481 per week per player. Reduce wages by £5,000 a week on average
per player.

Total saving £3.7M per season.

Championship Club B could put up a bonus of £1M to each player for
promotion to the Premier League. Hedging is £76,900 per player or 
£1478 per week per player. Reduce wages by £2000 a week per player.

Total saving £572,000 per season

League One could put up a bonus of £100,000 to each player for
promotion to the Championship. Hedging is £15,000 per player
or £288 per week per player. Reduce wages by £500 a week per player.

Total saving £228,000 per season

Player Individual Bonuses Insurance

If you want to acquire players, sell them or loan then insurance coverage
may also be useful to leverage any upside to a deal.

For example, when making an offer to a player's representative,
it is possible to offer a bonus based on individual or team performance.

Player A could be offered a bonus of £1M when the team qualify
for the Champions League and this could be insured for £250,000.

Player B could be offered a bonus of £2M for scoring 20 goals
in the season and this could be insured for £100,000.

To get your own personalised club bonus payments insurance schedule
takes one 10 minute call.

Tell us what your planned bonus schedule is and we will get you a quote to
cover the financial implications of your desired outcome. Confidential
quotes are guaranteed. Minimum premium of £5,000.


Clubs wishing to insure against significant financial exposure, budget
with certainty and get paid promptly with the minimum of form-filling should contact;

Keith D’Arcy at KAM Sports International
for sports risk insurance consultancy.

Telephone +44 (0) 1992 534332

Sponsors can also contribute to your success by paying large
bonuses when you are successful. One German club received
a 4 M Euro bonus from its main sponsor. Call us for details of
sponsor or player or team bonus insurance for football clubs.

Frequent questions we are asked;
What is the Player Bonus Insurance scheme?
The scheme reflects the FA’s position that it will now permit clubs to insure bonuses
related to the on-field performance of the team collective or of individual players.
What bonuses are eligible to be insured?
The scheme covers bonuses won on a positive outcome which relates to
league or tournament promotion, or success in complete competitions.
One-off matches or a series of matches are not covered.
How does this fit within the FA and UEFA’s Financial Fair Play scheme?
Whilst there is no specific correlation, it is part of a larger movement
within football.
Governing bodies recognize that it is undesirable and unsustainable
for TV rights money to be continually used to fuel higher player wages.
Initiatives like the Player Bonus Scheme aim to encourage different
financialmanagement; the way wages have been traditionally
underwritten cannot goon as it is detrimental to the long-term
health of clubs.
Why should we hedge when success is self-financing?
The idea that success should finance itself is a long standing
one in football and is flawed on a number of levels.
A case in point was when Portsmouth reached the FA
Cup final in 2008, they then had to exercise caution in team
selection based on Wembley playing bonuses.
Any or all of their bonuses could have been hedged for a
fraction of the payout at the start of the 2007/8 season and more
importantly, their success did not finance itself as is evident by
the current position of the twice-English champions.
Can we insure against one off match results?
No, only tournaments and complete competitions.
What is the positivity clause and can we hedge against relegation?
The positivity clause means that only wins and promotion are
covered by the scheme; relegation, losses or failure to qualify are
not. This helps prevent moral hazard issues such as match fixing.
Can anyone supply the Bonus Insurance service?
No and this is a significant change. Policies bought under this
scheme must be done in partnership with an FSA regulated
advisor as this ensures clubs are buying regulated products.
The Financial Services Act, which came into force on 1st April 2013,
may necessitate some changes so watch this space.
What level of bonus is eligible?
Technically bonuses of any value are eligible but it is probably not
commercially sensible for clubs to look at anything below £50,000.
What is the significance of the deadline?
Part of the scheme is that clubs must have any proposed bonus
insurance contracts lodged with the FA no later than 10 working
days after the final day of the August transfer window.
All bonus insurance contracts must be approved by the FA.

For more information on how to get a quote for Player Bonus
Insurance please get in touch with us at KAM Sports International.

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