By Andrei Skvarsky.
Wimbledon debentures, expensive elite season passes for the world’s main tennis tournament, have become a lucrative form of investment due to their eligibility for resale with returns that may exceed 100 per cent, according to the CEO of London’s Sun Global Investments asset manager.
Debentures, which are resaleable for specific days or for a whole season, can deliver returns of “anywhere between 30% to 60% in general, or in some cases more than … 100%”, a statement from London-based communications company Sterling Media quoted Mihir Kapadia as saying.
“In contrast, a stock market in the same period would perhaps yield about 25% under a best-case scenario,” Kapadia said.
The tournament, known as The Championships, Wimbledon, is the world’s oldest and has been held at the All England Club in Wimbledon, London, since 1877, with the games played on outdoor grass courts.
Current debenture series cover championships to run until 2020 or 2021 depending on which court the tickets are for. The next Centre Court series, to cover the championships from 2021 to 2025, is expected to be marketed in 2019.
“The key to maximise returns would be by selling tickets by the day. As the tournament progresses, you can further capitalise on the fixtures. The real value rises from the quarter-finals and onwards, and if there is a big 4 clash, it would likely be a blockbuster return,” Kapadia said.
One of the channels for debenture reselling is the Wimbledon official online debenture marketplace.
Kapadia said there also are specialist brokerages and auction houses that can help get the best deal.
According to Kapadia, Wimbledon debentures, which, besides excellent seats, give their holders access to perks such as exclusive restaurants, bars, lounges and car parks, are relatively low-risk investment vehicles.
One hazard, the Sun Global CEO warned, was that people might lose interest in a championship because some of the big guns had been knocked out, and then tickets would plummet in value.
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