Specialist investment firm Catalyst Investment is teaming up with a sports promoter to create an enterprise investment scheme sports fund which aims to invest in the stars of tomorrow.
The fund, which will open in November, aims to raise £600,000 and will raise further funds each year. The money will provide four or five individuals with a fixed income over three years while they establish themselves in their sport. Investors will get a percentage of the individuals' future earnings and perks such as passes and ringside seats.
Catalyst is not yet making the promoter's name public but says his contacts are mainly in boxing and golf.
Minimum investment in the scheme is £15,000.
Catalyst director of corporate finance Rennick Haddow says: “One of the things that initiated the sports fund was the success of Formula One driver Justin Wilson's EIS.
“But rather than investing in one individual, we wanted to invest in a range of people to get a higher hit rate.”
IFA Allenbridge managing director David Knight says: “I suppose you would only need one of them to hit the big time and then you would get the sponsorship money in.
“I would say have a go if you are a wealthy sports fan with money to burn but if all you want is the tax benefits, then go for something that is more secure and asset-backed.”