|Firm claims to save rugby sponsors cash||2008-11-19|
Rugby sponsors and associations could save millions of pounds in performance bonuses to players by hedging their risks at the beginning of each season according to Paddy Power's new risk management venture, Airton Risk Management. The company has seen many UK based clients look into hedging the risks associated with small rugby leagues and tournaments in the past few months. The increasingly challenging economic climate has led to many CEOs and CFOs prioritising eliminating budgeting uncertainly from club or company accounts, it said. "We have seen the interest for our products increase in the current economic climate. The main services we offer to sponsors and clubs: risk for player bonus cover. Our business is one of the recent additions to the Paddy Power Plc, who have been involved in managing sports risk for over 20 years. The Rugby World Cup in 2007 was one of the first events where we hedged risks for organisations. While performance bonuses with rugby are not unique to rugby, we have seen that companies involved in rugby, are among the most astute in the sports industry in general. We have come to Rugby Expo to present our offering and our unique take on sports risk management to the rugby world. The current economic climate has increasingly brought budgeting certainty and cost effectiveness to the forefront in the business of sport. Airton Risk Management provides unparalled expertise in understanding the rugby industry. The skills we have honed in book making over the past twenty years is now going to be applied to Airton risk Management," said Rod O'Callaghan, Director of Airton Risk Management, risk management specialists based in the UK and Ireland. "A significant proportion of employment and sponsorship deals in the rugby industry are supported by performance related bonuses. One way in which companies involved in rugby can develop more prudent business models in the current economic climate is to consider risk management. A risk management company can assess the risk profile of an event and offer to hedge any related performance bonuses at a fraction of the total payout. We are seeing significant interest in these types of products. Some clubs look to manage these costs when signing new players, enabling them to offer bigger bonuses but also get budgeting certainty." O'Callaghan continued. "Airton Risk Management is a division of Paddy Power Plc, Ireland's largest bookmaker. The interest in our products has greatly increased since the downturn on the global markets began. We have already provided hedging services for customers with financial exposure for Euro 2008, The Rugby World Cup 2007, Motorsport and Golf majors. The formula one racing industry with its significant cost base is a prime market for these services," concluded O' Callaghan. Airton Risk Management launched in June 2007 and enables clients to eliminate the financial exposure related to the outcome of sporting events. Airton Risk offers financial cover in all sports and specialises in Football, Rugby, Golf and Motorsports.
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