On the money: haunting words

On the money: haunting words

Here are some words that must haunt Martin Weigold, the CFO of Partygaming

‘If you read some of the public filings and examine what the senators
involved in congress are actually saying, it is virtually impossible to pass
this legislation.’

Accountancy Age quoted Weigold saying this in December 2005. Late last year
he would have choked when his prediction would prove hollow as US law makers
finally moved to outlaw online gaming.

Partygaming’s share price plummeted leaving everyone open-mouthed with
astonishment. The one thing they believed couldn’t happen had, indeed, happened.

But the recent granting of more than eight million shares to their finance
director is a clear indication that the board wants him to stay on – in fact,
they might even be a little desperate. After all, who would be surprised to hear
that Partygaming’s executives were bailing out? Outlawing the business did seem
unlikely and there must be easier sectors to work in right now than internet
gambling.

But Weigold and the other execs are the people who brought the company to
market. They put in the 18 hour days over six months, produced three sets of
accounts in short order, converted them to IFRS and made sure Partygaming zipped
into the FTSE 100. If you’re interested in seeing the company prosper, despite
the sudden loss of US markets, you need your experts on board.

This is one of those odd occasions when it’s difficult to begrudge the FD and
CEO their money. If they see Partygaming through this crisis, rebuild the
revenues and shareprice, I doubt very much anyone will be moaning about the
incentives they were given to stick around.

Weigold might want to steer clear of anymore predictions however. That might
make life a little bit easier.

Gavin Hinks is editor of Accountancy Age

Share

Subscribe to get your daily business insights

Resources & Whitepapers

Why Professional Services Firms Should Ditch Folders and Embrace Metadata
Professional Services

Why Professional Services Firms Should Ditch Folders and Embrace Metadata

3y

Why Professional Services Firms Should Ditch Folde...

In the past decade, the professional services industry has transformed significantly. Digital disruptions, increased competition, and changing market ...

View resource
2 Vital keys to Remaining Competitive for Professional Services Firms

2 Vital keys to Remaining Competitive for Professional Services Firms

3y

2 Vital keys to Remaining Competitive for Professi...

In recent months, professional services firms are facing more pressure than ever to deliver value to clients. Often, clients look at the firms own inf...

View resource
Turn Accounts Payable into a value-engine
Accounting Firms

Turn Accounts Payable into a value-engine

3y

Turn Accounts Payable into a value-engine

In a world of instant results and automated workloads, the potential for AP to drive insights and transform results is enormous. But, if you’re still ...

View resource
Digital Links: A guide to MTD in 2021
Making Tax Digital

Digital Links: A guide to MTD in 2021

3y

Digital Links: A guide to MTD in 2021

The first phase of Making Tax Digital (MTD) saw the requirement for the digital submission of the VAT Return using compliant software. That’s now behi...

View resource