The Hero Global Football Fund sounds like a noble endeavor, but in fact it is a group investing in young soccer players with a view to making a profit on their future sales, as David Conn explains. Although FIFA and the English Football Association have tightened their rules on third-party ownership of players in the wake of the confusion that followed the transfer of Argentine internationals Carlos Tevez and Javier Mascherano to West Ham United, the fund raises anew the ethical questions surrounding the movement of young players from poorer countries to the world's richer leagues.
Tevez and Mascherano came from Brazilian club Corinthians, but their "economic rights" were represented by Kia Joorabchian on behalf of a group of owners who were paid $26 million when Liverpool bought Mascherano earlier this year. They also stand to make a huge profit when Tevez, currently on loan to Manchester United, is transferred next summer. Corinthians received nothing.
Investors could dictate when the two Argentines were sold, violating both FIFA and FA rules. The Hero fund insists that all its dealings will be transparent, and will preclude any interference in club affairs. Its front figures include BBC pundit and former Scottish international Alan Hansen, former FA senior executive David Davies, and retired referee David Elleray, who will, according to Davies, advise the fund on the integrity of the clubs and agents. To invest you will need a mere $100,000 up front, with promise of a 10 percent return.
Hero's London-based investment adviser, Damian Roberts, said the fund aims to put money into smaller clubs so they can buy or hold on to young players for longer. Investors profit from a percentage of the players' transfer fees when they are sold. "Because the stock market is in trouble and property in a slump, people are looking for alternative investment ideas," Roberts said. "This is like the syndicate in horseracing where investors come together to own a horse."
Conn notes the "moral and regulatory" unease raised by comparing players with horses. But he also points out that the practice is already common in South America, as Joorabchian insisted all along in the furore that ended in a huge fine for West Ham. The FA has confirmed talks have taken place with Hero, but the FA and Football League have not yet given their approval, and will inspect any deals closely to be sure they do not infringe regulations.