Northumberland firm to open trading academy

Nov 14 2009 by Andrew Mernin, The Journal

A NORTHUMBERLAND firm is to open a multi-million pound trading academy in the heart of London’s financial district as it looks to cash in on an impending boom in sports investment.

Centaur Global, of Seahouses, has revealed plans to open a centre to produce the next generation of traders in sports investment funds.

The company, which is headquartered in offices above Seahouses’s popular arcades, has a history of horse race tipping and blood stock services and also runs sports-related betting funds.

And, later this month, the Centaur Academy’s official launch will be attended by two of the biggest names in sport, former tennis star Boris Becker and boxing legend Barry McGuigan. The new centre, believed to be the first of its kind in the world, will open ahead of changes to European legislation early next year which will give a huge boost to the industry.

From January 2010, legislation will be introduced which will open up the European betting and sports investment markets – and could be followed by loosening of laws in other parts of the world.

Centaur is hoping to attract current traders, the unemployed and retired people looking for a profitable part-time income and students looking to finance their education to its short courses.

The 4,000 sq ft academy in London’s City Tower offices has the capacity to be expanded across 14,000 sq ft and is expected to generate £3m in annual revenue by 2011.

Keith Sobey, the North East entrepreneur behind Centaur, said: “Currently there are hundreds of thousands of professional and amateur share traders worldwide.

“Sports markets provide a viable complementary alternative with better profit margins and increasing liquidity.

“Turnover on sports markets this year will exceed £10bn and this figure is likely to increase significantly in 2010 when European markets open soon. Should the USA and Far East follow in the next three years, turnover could approach £200bn.” Centaur started life in 2000 as a horse racing services firm and in 2005 moved into sports intelligence and investment funds, eventually building up a portfolio of £5m worth of client funds.

Earlier this year the company generated £6m in capital, including £1m from of city investors, and used the funds to acquire and equip London academy, which will also be used to run some of Centaur’s investment products.

Following the launch of the academy, the company will also sell software products to help would-be sports exchange traders and plans to launch a new sports-related managed fund in the New Year. Its current investment funds include Maxnet – in which soccer analysts recommend trades on a team not to win -– and Maxlay, which works on the same principles but for rugby, golf, tennis, cricket and horse racing.

Wallsend-born Mr Sobey was deputy director of finance at Eden District Council in Penrith in the 1980s. He then joined the Audit Commission in London before retiring early to start Centaur.