Link: Football’s debts mount
Almost one in seven FDs say they would offer their own personal guarantee on a loan to aid their business, writes Gavin Hinks.
The staggering news comes as separate research revealed almost 22% of football clubs are supported by loans personally guaranteed by their directors – news that will undoubtedly raise serious questions about the way in which teams are financed.
The latest Accountancy Age/Reed Personnel Big question survey reveals 14% of FDs would offer a personal guarantee while many confess that they has already done so.
Gwyn Bouch, FD at Systems Labelling, said she and a colleague had offered personal guarantees as it was ‘necessary action to take in order to drive business forward’.
Francis Black, FD and FPS Group, indicated how closely woven together the business and the lives of directors. ‘As a shareholder, the company is so closely linked to my life.’
Even among those who seemed certain they would not give personal guarantees, there was a tendency to leave the possibility open. John Collinson, FD at Britax Excelsior, said it could put him out of a job and out of a home.
‘On the other hand if by offering a personal guarantee the company could be saved from liquidation, maybe,’ he added.
A vast 81% said they would not give guarantees. Brian Beckitt, FD at J Devine Plant Hire summed up what many thought.
‘When you have commitments – ie a wife and home – you can’t afford to risk that if business is struggling.’
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