As a growing number of European football clubs look to tap the ABS market in the near future, analysts say that the fate of a troubled securitization from U.K.-based team Leicester City plc - a club that has recently been relegated to the lower ranks of the Premier Division - may determine whether asset-backed funding will continue to be a viable, logical option for the beleagured sports organizations.

So far, the so-called "relegation risk" of being dropped to lower rankings is not expected to disrupt bond payments on the GBP28 million privately placed Leicester transaction, and football team securitizations should continue from all over Europe, said one source familiar with the deal. Luckily, television stations such as Sky TV have offered "parachute payments" to Leicester over the next several years to bail the team out. "The club will be able to meet bond payments for the duration of the transaction from BskyB's GBP3 million parachute payment for the next two years along with sponsorship payments, even if the team is relegated and remains in division one," the source added.

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