Player Bonus Cover

This service enables clients such as Professional Sporting Bodies (Clubs and Federations) and Sponsors to hedge risk related to the outcome of sporting events. The client will have performance related bonuses that are part of employment or sponsorship contracts and can cover the risk of paying out for an upfront payment.  This allows the client to budget with certainty and not worry about on pitch performance. It also allows players to be financially incentivised further at a fraction of the cost. 

Sponsors can also avail of this service to mitigate their financial exposures related to on field performance. Sponsorship contracts increasingly contain performance related bonus schedules to reward their clients for success on the field – our service means that regardless of what happens on the pitch the sponsor can budget with certainty and remove volatility from their P&L. This product is also useful to sponsors involved in tender processes for new properties. These are highly competitive situations with multiple brands pitching to the client – we work with the sponsor to maximise the impact of their bonus schedule while minimising the cost

Conditional Rebates

This service enables Retail clients to hedge risk related to paying out on sports related consumer promotions. It allows them offer headline grabbing “money back” promotions which increase both sales and media coverage while protecting their bottom line profits in the event the outcome occurs. 

For example, a retail client may want to run the following promotion.  

“Buy a TV and if England win the World Cup get your money back!” 

The client can cover the cost paying out on the money back promotion if England win the World Cup by hedging their liability with Black Swan Sports before the tournament starts.  Conditional Rebates tend to come to the fore when major events such as the FIFA World Cup or UEFA European Championships take place.