Column: Now is the time to position yourself with your funders - but there are traps you need to avoid
4 May 2020
Many clubs will have major financial issues during and indeed after the Coronavirus crisis but what are the options for clubs to survive and thrive in the future?
One thing which is crucial for clubs to survive this current crisis is to develop a sustainable business model.
Being transparent and a good communicator with funders, commercial partners and fans is key.
Clubs need the league to outline the post crisis business model and likely ongoing support.
I’ve been a lender, advisor and credit analyst in financing sports entities for over 15 years (at Ambac, Investec and Fitch Ratings) looking at the long-term risks (e.g. Arsenal Stadium in 2006 and Real Madrid in 2019). Obviously, the current state, in which we all found ourselves, would not have been expected by anyone.
Below, I detail how I would advise a Football Club (“Club”) to prepare to go and see their bankers or bondholders (“Funders”) and commercial partners, in order to be best placed coming out of this pandemic.
Do you want to read this article?
Get instant access by signing up for a 7-day free trial
No credit card, no commitments and it will expire automatically.
You will receive a link that activates your trial in an email.
