An Own Goal?
A recent feature on performance and credit risk on the country’s leading football teams, has produced some interesting results.
Top of the table in being good payers are Swansea City and Southampton with Crystal Palace and Sunderland being bottom of the league.
Does that tell us anything striking? Firstly, there are no regional consistencies; the good and the bad-payers are spread nationwide. Secondly, success on the pitch does not always go hand in hand with being a prompt payer.
The good payer clubs will have strong financial management with processes and procedures in place to manage cashflow and debt management and good relationships with their financial institutions. Cash flow will be managed weekly with management accounts prepared regularly and debtors managed efficiently.
Clubs now are increasingly focused on their mission and objectives, and they have become adept at assessing and managing risk. The stronger clubs are good at developing and nurturing good relationships with key partners.
We have plenty of experience acting for and against a range of different sporting clubs including football, rugby and cricket clubs and also sports agents. We can help with advising on and implementing tight controls to manage cashflow and to assist with the recovery of unpaid debts.