Sunday 14 March 2010

Bad management in sport

The past two years has seen a big increase in the number of football and rugby clubs going into administration. Apart from the supporters of these clubs the biggest loser is us, the public, as the Inland Revenue is unable to get its hands on monies owed to it.

Yet clubs continue in business paying large wages to their playing staffs. One of the problems seems to be that ownership of the club is separated often from ownership of the stadium. I suggest we need legislation to prevent a club which goes in to liquidation being permitted to rise from the ashes and play at the same stadium as though nothing has happened except for the loss of a few league points.

Alternatively clubs should have to enter into agreements with stadium owners that the latter will indemnify creditors of the club. Creditors must be given the opportunity to get their hands on assets.

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