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Sports clubs kick off with pensions

IFAs may face a growing threat to their livelihood as sports clubs are

planning to sell life and pension products to fans, according to

Datamonitor.

The report highlights a growing trend for sports clubs and associations to

get involved in financial services, with over 250 clubs offering over nine

million fans the opportunity to take an affinity credit card.

But Datamonitor says sports clubs have set their sights higher,

forecasting that the fastest growth over the next five years will be in the

life and pension market with a 40 per cent annual growth rate.

Datamonitor says the scope for selling pensions, mortgages and long-term

insurance is only just being exploited.

The company predicts that by 2005, 11,000 pensions annually will be sold

in total through the sports affinity channel.

But Datamonitor senior analyst Godfrey Sullivan says: “At present, most

football clubs have tied relationships with financial services providers.

There is a degree of scepticism about how many football fans will use their

affinity to their club when taking out high value products such as

mortgages and pensions.”

IFAs may not find cause for concern just yet as the report suggests that

clubs will have the biggest impact in general insurance.

Sullivan says: “Where tied relationships between providers and football

clubs has a viable future is with products such as motor and travel

insurance that are already highly commoditised and customer retention is a

key issue.”

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