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Posts tagged ‘finance’

Brand football

The power of football in marketing terms has never been underestimated.  This is echoed in the latest report by Brand Finance (World’s leading brand valuation consultancy).

One particular piece that caught my eye follows on from the financial turmoil of Rangers FC in Scotland.  Their counterpart in Glasgow, Celtic, have won recognition as one of the top 50 brands in the global game.  It is suggested that this same Club, could even challenge such as Manchester United, Arsenal, Bayern Munich, Barcelona and Real Madrid in the top 10 if they were to ever play fixtures in the English Premiership.  The Daily Record confirms: “Celtic have become the first Scottish club to feature in the 50 most valuable clubs in football after their brand increased by a massive 30 per cent in the past 12 months.”  Maybe I need another trip north of the Border to see what tactics my namesake and Marketing Director has been employing.

In the Report, clubs are given a credit rating between AAA to D and the worth of their brands are calculated on how much it would cost to license them from a third-party.  Celtic have a BBB+ rating and a brand value of $64M – £40.7M.

Messy house

The latest Begbies Traynor report on football’s well-being states that:

“Of 68 teams surveyed in the Divisions [Championship, 1 and 2], 13 have signs of distress such as serious court actions against them, including winding-up petitions, late filing of accounts and “serious” negative balances on their balance sheets. That 19% compares to just 1% in the wider economy”.

When will they learn?  The Firm has been Administrator at several clubs that I’ve personally had involvement with: Chester and Huddersfield.  Plus others such as: Lincoln City, Northwich Victoria, Wrexham, Farnborough, Crawley, Scarborough, Bournemouth, Halifax, Southampton and Port Vale.

From a purely selfish perspective this keeps us in business, but how many times do we need to ask when will football get its own house in order?

The survey measures the financial distress of clubs according to problems including serious court actions against them and big negative balances on their balance sheet.

Taxman Cometh

The HMRC (after this Week’s clearance of our ‘Harry’) remains intent on targeting and exposing the leading clubs on alleged tax evasion.  This statement derived from inside information from Sporting Intelligence (SI).

I understand that it’s such as ‘perks’ for players that are to come under some scrutiny. By perks, the sorts of things included are ‘partner’s’ benefits, holidays, offshore accounts, expenses, hospitality etc. All finance directors in the Barclays Premier League were recently consulted and the findings from that research have led to this predicted action by the taxman.  The foreign immigration will be focused upon also especially in terms of whether players are totally compliant with N.I contributions.  Why shouldn’t they be exposed to such an investigation – after all we all pay them?

SI quotes: “HMRC has found big discrepancies in at least one club and they now want to make sure these discrepancies are not widespread”.  The Government apparently seeks £8Bn “claw back” and of course the football industry is high-profile enough to make an example that might strike home.  The whole matter falls under a strategy to bring football in line with other industries.

Dead as a Darlo?

Variation on the ‘dodo’ theme, but let’s hope extinction isn’t just around the corner.

Whilst, one club, Weymouth, gets a firmer footing and will revert back to full-time status after a torrid time, poor Darlington lurch from crisis to crisis.  I have feared the same fortunes for my beloved County.

Darlington could cease to trade this week, unless a new owner is forthcoming, according to administrator, Harvey Madden.  White knights are not as prevalent these days!  Darlo are in administration now for the third time in recent years.  The Administrator comments: “Things are still dire. We have not had any definite interest. We have seen a hell of a lot of people interested in the last week. No one has taken it a step further and quite a few have withdrawn. Without money, the club will not survive. I will have to make decisions by the end of the week and assess it.” Deja vu – Stockport County?