John Husselbee: View from the front row

Pros and cons of performance fees

clock • 5 min read

Performance fees continue to provoke a certain unease among retail investors, writes John Husselbee and, while people might like the idea of only paying for what they get, the devil - as ever - is in the financial detail

After they were thrashed 8-0 at Southampton in October 2014, Sunderland's footballers offered to pay the cost of travel and the match ticket for the team's supporters. This gesture is such a rarity in football that it made headlines and prompted debates about whether this was a good precedent to set. Given how Sunderland have played over the past few years, of course, their fans could argue they have been entitled to many more refunds. This episode also highlights the fact that performance-related pay by customers is the exception to the rule in most industries, even if performance-re...

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