Column: Buying a Professional Football Team? 10 Lessons Learned: #9 – there is a seasonal pattern that needs to be deeply understood if solvency problems are to be avoided
15 September 2020
Every industry has its own rhythm – the football industry is no different. But in football - if you don’t get the beat from day one, serious cash-flow problems may emerge. A rescue is always possible though – but instant access to capital is required.
Alexander Janssen was involved on the ownership side of two clubs, one in Belgium and the other in Spain, where he learned that the football industry is not only extremely competitive but very, very different to the environment that he used to work in.
As a successful consultant with deep knowledge of turnarounds, he inexplicably experienced a sudden disregard of the discipline and long-term mindset that normally characterised his every move.
Janssen has written ten columns about the insights he gained from being involved with those two clubs. This is the ninth.
This post elaborates on LESSON #9: TIMELY ANTICIPATION OF MISSED TARGETS
There are two crucial financial phenomena inherent to football. Firstly, the income of a club shows a seasonal pattern. Secondly, when the team does not perform, in the second half of the season, income will plunge.
This lesson complements lesson 5 (Ensure Appropriate Funding and Structuring).
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