Some call it the fruit machine effect - the way in which money has poured into leading football clubs in recent years and quickly tended to flow out again.
Much of the flow has ended up in the pockets of leading players, whose wages have soared accordingly.
Certain key individuals now command weekly salaries of more than £50,000 sterling (€80,000), with some predicting that the first £100,000a-week player is only a couple of years away. In such circumstances, you might surmise that somehow investing in the players themselves might prove more rewarding than putting the money into the football clubs that employ them.
The only problem has been finding a vehicle. However, times have started to change. This week saw the first trading in shares in The First Artist Corporation, whose primary business is representing the commercial interests of personalities in the British football market.
Current clients include Arsenal's Nwankwo Kanu, Tore Andre Flo of Rangers, and Blackburn Rovers manager Graeme Souness.
The shares are traded on Ofex, which provides a facility for dealing in the securities of unlisted and unquoted companies. A total of seven million new shares have been sold at 33p each, raising £2.3 million, despite far-from-ideal market conditions. The offer will leave Mr Jon Smith, who started the business in 1986, with 41.4 per cent of the issued share capital, and brother Phil with 17.3 per cent. Turnover in the year ended June 30th was £1.39 million, generating a pre-tax profit of £447,500. Estimates in the prospectus suggest that revenues could reach as much as £8.64 million in the year to June 30th, 2004, with operating profits of more than £6 million.
Mr Jon Smith, chief executive, points to big changes in the marketplace served by First Artist, saying FIFA, the sport's governing body, is `allowing you to take up to 5 per cent of the gross salary of a player's package." Previously, he says, "most people charged between 2 and 7.5 per cent. We were on the lower side. So my income returns are going to be much more sizeable than in the past." He predicts rapid consolidation of the 140 or so agents active in the British football market, and says the money raised by the flotation will enable First Artist to diversify into other sports.
Ms Catherine Bond, media and sports analyst with Seymour Pierce, is positive about the company: "The nice thing about First Artist is that they know a top sport very well. They have one of the best sports, and they have rights over the most important thing in football, which is transfers."
A side effect of the growing wealth of top footballers is that they can afford to buy shares: England internationals Kevin Phillips, Lee Dixon and Steve Howey all subscribed for the shares, Mr Smith discloses.
Presumably all will be hoping to score with their new investment.
