Britain's George Osborne throws an American football after meeting with former NFL players and current team owners on Friday at 11 Downing Street. Justin Tallis / AFP / October 2, 2015
Britain's George Osborne throws an American football after meeting with former NFL players and current team owners on Friday at 11 Downing Street. Justin Tallis / AFP / October 2, 2015

George Osborne: ‘I am supporting the NFL’ in London ambitions



London has moved a step closer to getting its own NFL team, British chancellor George Osborne said on Friday, after meeting with NFL team owners, executives and players ahead of this year's first game at Wembley Stadium.

Osborne met Miami Dolphins owner Stephen Ross, New York Jets owner Woody Johnson and NFL executive vice president Mark Waller at Downing Street to discuss what it would take to encourage an NFL team to base itself in London.

The idea has been in the works since last year, and Osborne and London mayor Boris Johnson have backed the plan for what would be a lucrative addition to the city’s sporting calendar.

“I want London to be the global sporting capital,” Osborne said.

“That’s why I am supporting the NFL to bring one of their 32 teams to London permanently.

“This would be a huge boost to our capital city. I’m doing everything I can to make it happen so that London scores a touchdown.”

The NFL is one of the UK’s fastest growing sports and the three league games currently played in the capital as part of the London series have been a rousing success since they began in 2007.

The games at Wembley last season drew sellout crowds of more than 80,000 fans, for a reported total of more than £21 million (Dh117.3m) in ticket revenue.

That figure could increase to a £102m if a London-hosted franchise play eight regular games a season in the capital, according to a study by Deloitte last year.

Buoyed by this success, the NFL and Tottenham Hotspur reached a 10-year deal for shared use of a new multi-sport stadium in London in July.

“Everything we experience in London highlights a huge demand for more NFL here,” Waller said.

The Buffalo Bills, Kansas City Chiefs and New York Jets will play in the UK for the first time this year, taking the number of NFL teams that have played regular season games in the city to 20.

“He (Osborne) ... understands the benefits that an increased NFL presence in the UK can bring economically,” Ross said.

Osborne also met NFL Hall of Famers Dan Marino and Curtis Martin and exchanged a Rugby World Cup 2015 ball and a NFL gold Super Bowl 50 ball as a sign of commitment to bringing a team to London.

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Leap of Faith

Michael J Mazarr

Public Affairs

Dh67
 

Mercer, the investment consulting arm of US services company Marsh & McLennan, expects its wealth division to at least double its assets under management (AUM) in the Middle East as wealth in the region continues to grow despite economic headwinds, a company official said.

Mercer Wealth, which globally has $160 billion in AUM, plans to boost its AUM in the region to $2-$3bn in the next 2-3 years from the present $1bn, said Yasir AbuShaban, a Dubai-based principal with Mercer Wealth.

Within the next two to three years, we are looking at reaching $2 to $3 billion as a conservative estimate and we do see an opportunity to do so,” said Mr AbuShaban.

Mercer does not directly make investments, but allocates clients’ money they have discretion to, to professional asset managers. They also provide advice to clients.

“We have buying power. We can negotiate on their (client’s) behalf with asset managers to provide them lower fees than they otherwise would have to get on their own,” he added.

Mercer Wealth’s clients include sovereign wealth funds, family offices, and insurance companies among others.

From its office in Dubai, Mercer also looks after Africa, India and Turkey, where they also see opportunity for growth.

Wealth creation in Middle East and Africa (MEA) grew 8.5 per cent to $8.1 trillion last year from $7.5tn in 2015, higher than last year’s global average of 6 per cent and the second-highest growth in a region after Asia-Pacific which grew 9.9 per cent, according to consultancy Boston Consulting Group (BCG). In the region, where wealth grew just 1.9 per cent in 2015 compared with 2014, a pickup in oil prices has helped in wealth generation.

BCG is forecasting MEA wealth will rise to $12tn by 2021, growing at an annual average of 8 per cent.

Drivers of wealth generation in the region will be split evenly between new wealth creation and growth of performance of existing assets, according to BCG.

Another general trend in the region is clients’ looking for a comprehensive approach to investing, according to Mr AbuShaban.

“Institutional investors or some of the families are seeing a slowdown in the available capital they have to invest and in that sense they are looking at optimizing the way they manage their portfolios and making sure they are not investing haphazardly and different parts of their investment are working together,” said Mr AbuShaban.

Some clients also have a higher appetite for risk, given the low interest-rate environment that does not provide enough yield for some institutional investors. These clients are keen to invest in illiquid assets, such as private equity and infrastructure.

“What we have seen is a desire for higher returns in what has been a low-return environment specifically in various fixed income or bonds,” he said.

“In this environment, we have seen a de facto increase in the risk that clients are taking in things like illiquid investments, private equity investments, infrastructure and private debt, those kind of investments were higher illiquidity results in incrementally higher returns.”

The Abu Dhabi Investment Authority, one of the largest sovereign wealth funds, said in its 2016 report that has gradually increased its exposure in direct private equity and private credit transactions, mainly in Asian markets and especially in China and India. The authority’s private equity department focused on structured equities owing to “their defensive characteristics.”

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