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Quality Sports Investments

Burnaby Investments LP
Formerly called
Quality Sports III Investments LP
limited partnership
Industry Sport investment
Founded 13 June 2011 (2011-06-13)
Headquarters Saint Helier, Jersey
Owner
Roman Abramovich (via Cetus Investments Ltd.) (100% ordinary)
Burnaby GP (general partner)
Subsidiaries Burnaby Investments Ireland (via ABS contracts)
Quality Sports IV Investments LP
limited partnership
Industry Sport investment
Founded 18 October 2011 (2011-10-18)
Headquarters Saint Helier, Jersey
Owner
unknown (limited partner)
Quality Sports IV Jersey GP (general partner)
Subsidiaries Quality Football Ireland IV (via ABS contracts)

Quality Sports Investments is a chain of companies dedicated to football investments. Through Quality Football Ireland, the company held the footballer's contract rights. QSI also invited investors to buy their financial products: the economic rights in packs.

It was reported that Jorge Mendes and Peter Kenyon were the advisors to the fund. However Kenyon quit Creative Artists Agency in October 2011. It was also rumoured that FIFA was investigating the fund as third parties ownership actually not allowed and a possible conflict of interests of the agent Mendes and CAA.

Creative Artists Agency, the manager of the investment fund, had set up Quality Sports Investments LP (one) to Quality Sports V Investments LP (five), as well as Quality Sports Investments Fund Limited, Quality Sports Investments Fund GP Limited, Quality Sports Jersey GP Limited (one to five) in Jersey. In Ireland, there were three companies, namely Quality Football Ireland Limited, Quality Football Ireland III Limited and Quality Football IV Ireland Limited.

Quality Football Ireland Designated Activity Company formerly known as Quality Football Ireland Limited (abb. QFIL) is a Republic of Ireland incorporated company.

As of 31 December 2011, QFIL was 70% owned by CAA Sports International LLC (CAA), CAA director O'Connor and Michael Levine (co-head of CAA Sports) held 15% each. QFIL borrowed money from Quality Sports Investments LP as asset-backed security and later Quality Sports II Investments LP (QSI II) to purchase the economic rights of the transfer fee receivables of the footballers (coined ERPA: Economic Rights Participation Agreement), made the company an intermediate holding company with €100 net equity (the original share capital), or a shell company. The companies were associated with Quality Sports Jersey GP Limited (QSI GP) and Quality Sports II Jersey GP Limited (QSI II GP). QSI GP and QSI II GP were 50% owned by CAA.

Unlike Portuguese football investment funds (which were regulated by Alternative Investment Fund Managers Directive 2011), the EPRAs was not treated as an intangible asset, and so there is no amortization nor write-down as a case of tangible asset. The fund even inserted clause in the EPRA, such that even if the player was released as a free agent, the fund would received the original purchase price paid to the club, plus 10% interest p.a.. Beşiktaş used the word "factoring" to describe the company.


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