PKF puts Motherwell FC up for sale
PKF has been appointed administrator of Scottish football club Motherwell, after the premier league side was driven into the red by high player wages, low game attendances and a drop in sponsorship.
Administrator Brian Jackson told AccountancyAge.com that the club was suffering from the same problem facing many English clubs, where the players’ wages were too high – sometimes higher than turnover – with the fan-base and advertising revenues dropping.
Jackson said the management at Motherwell had decided to bring in more highly paid players, thinking the players, who had a higher profile, would bring in more fans.
But this decision turned out to be the wrong one, as the high-wage players did not perform as well as expected and didn’t bring in more spectators. ‘Then like many other clubs, they made a mistake of making the cuts too late.’
Aside from the drop in television money, Motherwell’s main sponsors, Motorola, was also forced to drop its support because of dwindling revenues
But Jackson is hopeful of a quick sale, saying he already had five interested parties and would be drafting a sales memorandum next week. He expects the sale to be completed within six months.
Manager Eric Black and director Pat Nevin resigned following the Board’s decision to sell the club on Wednesday.
PKF’s Philip Long and Brian Jackson were appointed administrators late Wednesday night.