Two together courtesy of debenture investors

Nick Harris discovers a profitable trade in Wimbledon tickets for those who fund All England Club improvements

Combine Tim Henman's emergence as the great hope of British tennis with a nation entranced by the success of its sportsmen, and one might imagine that seats for this summer's Wimbledon tournament would be impossible to obtain. Not so. For those with deep enough pockets, tickets are in plentiful supply.

Despite the Wimbledon authorities' dogged attempts to outlaw ticket touting, one London agency is selling Centre Court seats - quite legitimately - at up to pounds 1,050 per pair during the first week of the championships and pounds 2,995 per pair for the men's final.

A saleswoman said: "Tell us what tickets you want, on what days, and we'll get them for you." When asked if she could provide 10 seats for the men's final, she replied: "No problem."

Another agency is selling men's final tickets at pounds 3,000 per pair, or pounds 2,000 each. Normal ticket prices range from pounds 22 to pounds 54 for Centre Court seats and pounds 19 10 pounds 38 for No 1 court.

This thriving market is in debenture seats and is, ironically, a result of an initiative launched eight years ago by the All England Club to stamp out touting. While Wimbledon forbids the re-sale of non-debenture tickets "to keep them in the hands of the genuine fans", debenture holders are quite free to sell their tickets either individually or en bloc and many have been able to make large profits.

Wimbledon has used debenture schemes to finance capital projects since 1920. Debenture holders have contributed pounds 45m to new developments in the past three years alone.

A Wimbledon spokesman said: "Without financial commitment, very few, if any, of the capital projects at Wimbledon would have been possible. Certainly, the long-term plan which is currently in progress [including the construction of the new No 1 court] could not have been contemplated." He added: "It is felt wholly fair, therefore, that tickets of debenture holders should be freely transferable."

However, nearly every other major British sporting venue - for example, Twickenham, Murrayfield, Lord's and Arsenal's Highbury football ground - forbids debenture holders from re-selling individual tickets for financial gain.

There are currently 2,100 Centre Court debenture seats and 1,000 No 1 court debenture seats. In total there are 13,500 Centre Court seats and 11,000 No 1 court seats.

The Centre Court debentures, sold in 1994 for pounds 19,625, entitle the owner to a seat per tournament day for the five years of the debenture (1996- 2000). On expiry, the debenture also has a cash value of pounds 2,000, so in effect, the holder gets 65 tickets over five years for pounds 271 each.

However, by reselling the tickets debenture holders can make up to 75 per cent profit on their investment over five years. They can either sell to Wimbledon itself - which began trading in debenture seats in 1989 when it outlawed the resale of other tickets - or on the open market.

Although Wimbledon would not reveal the exact prices it pays for debenture tickets, one investor contacted by the Independent said the All England Club was currently offering pounds 11,500 for a pair of debenture seats for the fortnight. Wimbledon resells such tickets, offering them to members and other debenture holders.

On the open market, one agency manager said that she pays pounds 13,000 to debenture holders for a pair of seats for the fortnight. At such rates, an investor buying a pair of debentures in 1994 for pounds 40,000 could sell all five years' tickets to an agency for pounds 65,000 and make pounds 29,000 profit (pounds 4,000 of which would be the bond premium). On top of that, the agencies expect to make their own profit by reselling each pair of tickets for between pounds 16,000 and pounds 17,000.

One investor, who spoke to the Independent on condition of anonymity, represents a group of like-minded speculators who own both Centre Court and No 1 court debenture tickets and sell them for profit. "There are about 20 friends and associates in possession of quite a number of Wimbledon debentures," he said. "We have no problems whatsoever in selling the tickets."

He added that his informal syndicate first bought centre court debentures a number of years ago, and found their initial investment was so successful that most members also bought the latest No 1 court debentures when they were issued last year.

"It's been a good thing," he added. "It produces a reasonable rate of return on the investment, and gives you the chance, should you want it, of watching the best tennis."

Tennis fans who cannot afford debentures have five other options for buying Wimbledon tickets. They can apply via the official ballot (which closed in December) or to their local tennis club (if they are a member). Approximately 60 per cent of Centre Court and No 1 court seats are allocated for sale in this way. The third option is to queue for one of 500 tickets available for each of the main courts each day (except the last four days).

The fourth possibility is to buy a hospitality package, including food, drink and the use of marquee facilities, from the two authorised agents. These range from pounds 375 plus VAT for a No 1 court seat on the second day, to pounds 1,895 plus VAT for a centre court seat on men's final day. The fifth option is to buy individual debenture tickets on the open market.

While the Wimbledon authorities are unhappy with agencies making profits from the tournament - "From agencies, little support, it is suspected, flows back into the game," a spokesman said - they are unwilling to outlaw it.

"The financial commitment of the relatively small number of debenture holders is clearly immense," the spokesman said. He added: "And these debenture holders have, as a group, supported the club and the championships since the introduction of debentures in 1920."

1997 PRICES

One American agency's price scale for single Wimbledon tickets (prices converted from $US)

Debenture Non-debenture

(face value)

23 June pounds 406 pounds 247-pounds 372 (pounds 22)

24 June pounds 406 pounds 247-pounds 372 (pounds 22)

25 June pounds 469 pounds 309-pounds 434 (pounds 27)

26 June pounds 496 pounds 309-pounds 434 (pounds 27)

27 June pounds 719 pounds 372-pounds 496 (pounds 32)

28 June pounds 872 pounds 434-pounds 559 (pounds 32)

30 June pounds 718 pounds 372-pounds 559 (pounds 38)

1 July pounds 656 pounds 343-pounds 496 (pounds 38)

2 July pounds 1,059 pounds 531-pounds 684 (pounds 44)

3 July pounds 844 pounds 391-pounds 546 (pounds 44)

4 July pounds 1,809 pounds 622-pounds 872 (pounds 49)

5 July pounds 1,031 pounds 516-pounds 809 (pounds 49)

6 July pounds 1,809 pounds 622-pounds 872 (pounds 54)

HOW OTHER DEBENTURE SCHEMES WORK

At Twickenham, the headquarters of English rugby union, there are 15,000 debenture seats. Each match ticket is printed with the name of the debenture holder. Debenture contracts vary in seat type (basic to hospitality), duration (seven to 10 years) and cost (pounds 1,976 - pounds 8,048), but all entitle the owner to first refusal on match tickets. Any owner found selling a match ticket for profit forfeits the debenture. "That is stipulated on the debenture certificate," a spokesman said.

The same rules apply at Murrayfield in Scotland, where 18,000 debentures, ranging in price and valid for 50 years, were issued in 1992.

At Lord's cricket ground, 536 three-year debenture seats in the Mound Stand were sold in 1996 for pounds 2,000, giving the owners entitlement to first refusal on tickets for major matches. A spokesman said: "Owners are not allowed to tout their tickets or package them up for corporate hospitality." Again, it is forbidden in the debenture contract.

At Arsenal Football Club, where Highbury's North Bank Stand debentures cost pounds 1,500 in 1991 (allowing owners cut-price season-tickets for 10 years), re-sale of individual match tickets is also forbidden. Season ticket books, which must be presented at the turnstile, make touting impractical.