
How a Dedicated Investment Company is Giving a Norwegian Football Club the Means to Splash Out in the Transfer Market
If you know football, you know that money is important. It pays for marketing, coaching, and, most significantly, buying and retaining players.
When it comes to making moves in the summer transfer window, Norway’s a bit different. With its domestic leagues running across a single calendar year, the summer is the middle of the season, and, as a result, Norwegian players are very likely under contract.
That doesn’t mean they can’t be signed, but it does mean that there are very few free transfers going around and any club wanting to sign players domestically will be forced to cough up cold, hard cash for both contracts and transfer fees.
Say you’re a club with big ambitions like Fredrikstad FK, which currently sits in Norway’s second tier. The club is technically Norway’s second-most successful, but that success started and ended over half a century ago.
There were a couple of domestic cups added to the trophy cabinet in the 80s and the 00s, but the last decade has seen Fredrikstad FK relegated from the top flight and then relegated from the second tier in 2017.
New Management, New Investment
In 2018, when Fredrikstad FK changed management, the Fredrikstad Fotball Invest (FFI) limited company was set up. This company believes in the club’s current management and is issuing shares in the company to raise money for the football club.
The idea is that people who love the club and believe in it, like Tor Anders Petterøe and his son, whose company Golden Touch Media holds the largest number of shares of any shareholding group, can put their money where their mouth is and support Fredrikstad FK.
This isn’t a charity, though. This is a real investment, but the company is focusing on the club’s success first and foremost. That said, the company did become profitable by its third year so the investment is paying off.
What Does This Mean for Fredrikstad FK?
For Fredrikstad FK, FFI has an agreement for 30% of the players. Not 30% of the individuals, but rather a 30% stake in player logistics, which means buying and selling players.
When the club buys a player, FFI is responsible for 30% of the fees. When a player is sold, FFI gets 30% of it back. This means that the club has a financial partner boosting their buying potential and is helping the club to make bigger moves for players than they’d otherwise be able to afford.
The same is true of youth. FFI is also committing funds to sign youth players onto professional contracts. Rather than being poached by bigger or richer clubs, Fredrikstad FK now has more power when it comes to retaining and promoting young talent.
All in all, this means that the club can get even closer to promotion back into the top flight, especially following their devastating playoff loss last season which would have seen them secure back-to-back promotions!