Airton Risk Management
Airton Risk Management is a division of Paddy Power plc which is quoted on the London and Dublin Stock exchanges.
We specialise in hedging sporting risk and provide a range of risk services for sports and non-sports industries. Players bonuses and conditional rebates are some of our offerings. When you come to us for a quote, particularly in the Sports arena, you know you are dealing with the experts. Due to our extensive experience and expertise in Sports we can assess your risk with a great deal of accuracy. Working with us eliminates the middle men in the value chain, thereby enabling us to provide you with a price that reflects great value.
Sports Clubs & Associations
Player bonuses are a critical ingredient of contemporary successful sporting organisations. A significant number of Football Clubs now utilise financial bonuses to incentivise their players or staff to greater levels of success. If for example you are a Football League club with aspirations to finish in the Top Four, Win the Cup or Do the Double then we are here to help eliminate the associated financial worries. In all of these instances we can structure a financial package that makes sense for you. If you achieve your goals we pay you. You get the obvious benefits of achieving your targets but also the benefit of not having to pay out the full cost. In some instances you may consider to increase your bonuses given that you can now hedge the full impact of them with us. Our clients can now cap their financial exposure and budget with certainty.
The Clubs and Associations that may be interested are:
- Other European Football Clubs
- National Rugby Football Unions and Clubs
- National or County Cricket Clubs
If you are a retailer who wants to drive top line sales whilst protecting bottom line profits then we are here to help. We offer a service called Conditional Rebates that allows you to achieve these twin objectives. We work with retailers to craft promotions that grab headlines, attract customers and drive sales. Critically these promotions can also help you to differentiate your organisation from the competition. For example we worked with Frank Keane BMW to create a promotion for the 2007 Rugby World Cup. Frank offered each customer who bought a BMW in July/August €10,000 cash back if Ireland won the World Cup. This promotion got considerable mention in the Press and helped Frank's dealership to stand out from the crowd. The fact that we helped Frank to offset his risk related to a potential Ireland win meant that he could sit back and enjoy the World Cup.
The Retailers that will benefit from our services:
- Car dealers
- Department Stores
- White Goods Retailers
- Mobile Operators
A key element of modern day sports sponsorship arrangements is the feature of Player Bonuses. These typically involve increased payments for specified levels of success. Every sponsor wants to maximise the exposure they get from their investments. In addition it is as important to make the sponsorship as cost effective as possible. We can help sponsors offset the cost of increased win bonuses such that when the team or player wins the sponsor can enjoy the increased profile as well as the reduced cost.
Sponsors can also leverage their sponsorship to maximum effect by using our Conditional Rebates service. The sponsor can raise the awareness of the sponsorship, be seen to be supporting the team and ultimately drive sales and customer retention by utilising this Conditional Rebates. For example let's take a Furniture Store which sponsors a local sports team. The store can run a promotion as follows: "Spend €1,000 during March and if our team wins the championship get your money back". This promotion will certainly get headlines as well as keeping customers interested in the progress of the team. We can remove the Furniture Store's financial risk of the team winning and the promotion paying out. We offer the client a financial contract which covers them in the eventuality of their team winning and the customer promotion being triggered. The premium that we charge as consideration for this cover is based on the probability of the event happening. As our in house team is skilled in assessing such risk we can offer very competitive pricing.
Sports Management Companies
We can help Sports Management Companies create better deals for their clients. A common feature of Player Contracts in the 21st century is performance related bonuses. Sports Management Companies can put Sponsors funds to work by setting up meaningful and goal oriented bonus structures. Due to our ability to price sporting events and offer significant capacity we can create bonuses that will give value for money to the client and bigger potential payouts for the players.
For the 2007 Rugby World Cup we facilitated clients in hedging â‚¬6m related to Player Bonuses and Conditional Rebates.
We have given our clients budgeting certainty and peace of mind to cover football risk worth â‚¬4m.
Performance bonuses are a perfect way for Sponsors and Sports management Companies to incentivise their players to even greater levels of success.
We have also helped clients hedge their financial exposure to American NFL, English Cricket, Basketball, Horseracing, Darts and Golf Hole in Ones.
Send An Enquiry to Airton Risk Management