A monthly compilation of interesting business news related to soccer. February 2012. Continue reading “The Month in Soccer Business: February 2012”
The Month in Soccer Business: November 2011
A monthly compilation of interesting business news related to soccer. November 2011.
Hearts owner Vladimir Romanov open to sale – November 6th
Owner Vladimir Romanov insists he will continue to support Hearts financially but admits he is now open to selling the Edinburgh club.
Players were paid on Friday, following an 18-day wait for overdue wages, and Romanov recently Continue reading “The Month in Soccer Business: November 2011”
The Week in Soccer Business: August 12, 2011
A weekly compilation of interesting business news related to soccer.
Italian Soccer Clubs Docked Points, 10 Players Banned for Fixing Matches – August 9th
Newly promoted Serie A club Atalanta received a six-point deduction and two of its players were suspended for alleged match-fixing, the Italian soccer federation said on its website
Benevento also received Continue reading “The Week in Soccer Business: August 12, 2011”
The Numbers: £209,869.42
We are starting a new segment at Footy Finance! Every Wednesday ‘The Numbers’ will highlight one figure that has relevance for the crossroads of Football/Soccer and Business.
Our number today is £209,869.42. This is the accrued cost of the ongoing administration proceedings at Portsmouth, as disclosed in the Administrator’s Report to Creditors released last week (1). The sum applies to the period between February 26 and April 12, and includes billable hours by the administrator and his firm, supply reimbursements, and travel costs. Billable hours represent 95% of the sum. As Portsmouth clearly has not exited administration, the cost continues to grow.
Administration is viewed by many supporters as a way to ‘wipe clear’ a club’s debts and essentially give it a fresh start. This number should be a stark reminder that there is a large and very real cost of financial instability. To put the figure in perspective, consider that Portsmouth’s total Matchday Revenues for 2009 (draft figures) were approximately £11.4m, the administration costs currently represent 1.8% of that figure after only 45 days. Just to re-emphasize again, this money is not building club facilities, paying players, or the cost of pies; it is money going out of the club door just to find someone to buy the club or, if it comes to it, to determine how much that door is worth in a liquidation.
The longer it goes on the smaller the pie gets for everyone, and considering the long list of creditors looking for a slice the pie is already far too small.
The only reason that the cost of administration has been ignored is that they are glossed over as soon as a newly minted millionaire comes in to rescue a club. All things are forgiven and the cycle begins again.