Business discussion from John Birchall
The administrator has agreed that the asking price for Portsmouth Football Club of £30 million is ‘fair’. Yet, just a week ago the club was described as having debts of £60-70 million!
Let’s take a SWOT look at this.
They have a brand which has considerable following
They have players with some market worth – currently put at £38 million
They are to lose points and that will mean relegation to a lower division and much less TV money
BUT
They owe lots of money
They don’t own their ground
Their players will not fetch their true price
So, the SW part don’t look too god!
What of the OT part?
Well, with Premier League support the club will be open for business next season
Many of their fans have been priced out of matches by the Premiership ticket prices and hope that a return to the Championship will mean lower prices and attendances enough to meet their 20000 capacity.
Their closest rivals are still a division below the Championship and Bournemouth FC is in both a lower division and is financially stretched themselves.
The threats look more serious and are led by Her Majesty's Revenue and Customs.
They want several millions from them.
As any student of business will tell the odds of survival are not good.
So, how might this south coast club continue?...