Introduction

In line with our values, Tifosy performs due diligence on the Clubs that it works with to ensure that fans and investors are given the opportunity to invest in professional sports in a fair and transparent way.

Tifosy works alongside Club management throughout the transaction process, ensuring that the Club addresses the concerns and issues that may be relevant to an investor in its documentation. By helping the Club to clearly identify and address critical risk and success factors in this way, Tifosy aims to ensure that investors are provided with an understanding of all relevant issues so that informed investment decisions can be made.

What is Due Diligence?

The due diligence performed by Tifosy varies depending on the transaction but generally covers:

• Background Review
  Tifosy conducts background checks on the Club and its directors including personal credit and bankruptcy checks, director’s disqualification checks, previous company checks and accreditation checks;
• Corporate Review
  Tifosy reviews the corporate data and legal structure of the Club and carries out a number of key checks;
• Financial Review
  Tifosy reviews the Club’s audited accounts and directors’ reports for the last three financial years;
• Litigation Review
  Tifosy obtains a statement that the Club is not party to any material litigation and that it is not aware of any threatened material litigation; and
• Fact Review
  Tifosy reviews statements and claims made in the Club’s investment documents and promotional materials to ensure they are fair, clear and not misleading.

Investor Information

In addition, every Club that raises capital on Tifosy is required to provide investors with:

• Historical Financials
  information related to the historical financial performance and position of the Club;
• Risk Factors
  information related to the key risks associated with the Club, its industry and its securities; and
• A Balanced Impression
  information which shows a true and fair view of the state of affairs of the Club and its short and long term prospects.

Responsibilities

Whilst Tifosy does provide Clubs with guidance on appropriate interest rates and/or valuations, it is the Club’s decision to price their investment offer and ultimately investors then decide if they are willing to invest at that price.

Tifosy believes it carries out due diligence to a suitable level however, due to the diversity of Clubs that raise finance on Tifosy’s platform, Tifosy cannot cover all situations and is required to use certain assumptions, including the following: (i) that all information provided to it by the Club and its directors is true and accurate; (ii) that no material information has been withheld by the Club and its directors; and (iii) that the Club has the capacity, power and authority to exercise its rights and perform its obligations in relation to the transaction.

Prospective investors should be aware that Tifosy does not endorse any of the Clubs raising finance on its platform and does not provide investment advice of any description. Tifosy strongly encourages all investors to undertake their own research and if there is uncertainty, to receive independent advice before investing.