Football Clubs unprepared for risks
Football clubs are struggling to stay solvent in the wake of ITV Digital's collapse and suffer from a lack of clear corporate governance guidelines, according to an influential report.
The State of the Game 2003, launched on Friday by Birkbeck’s Football Governance Research Centre, said the majority of clubs lacked procedures necessary to manage the risks they face.
It produced a survey that showed 71% of clubs found it ‘quite’ or ‘very’ difficult to maintain the solvency of the company.
And it suggested that the financial woes of Leeds United have underlined the need for good corporate governance among football clubs.
Joe McLean, a partner in Grant Thornton’s corporate recovery practice, said: ‘The football industry, perhaps more than any other, needs to produce and adhere to a strict code of behaviour. As many clubs continue to live beyond their means, it is essential for the authorities to set some clear and unavoidable rules.’