Reply To: Aidam McCartney’s piece

Iron Bru Forums Blast Furnace Aidam McCartney’s piece Reply To: Aidam McCartney’s piece

#266582
FerriteFerrite
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Registered On: December 23, 2013
Topics: 98

The proof of funds in general seems ridiculously flawed ,otherwise all these clubs that end up in mess would not be .

I have heard it mentioned by quite a few people that a requirement for new club owners should be to put a % of the funds down on the purchase of clubs , like a deposit which is held in a neutral account much like used in housing rentals / mortgage etc .

Does not sound a bad idea in theory , and would in some scenarios offer clubs a degree of protection .

Yep, some sort of performance bond. In other countries, clubs are required to lodge a bond (usually backed by a bank) with the authorities to cover the operating costs of the club for the season. Then, if the club runs into financial difficulties during the season, the bond is called on and the club can continue at least until the end of the season.

Other systems include required the club to submit a business plan & accounts before the start of the season to ensure that clubs can operate within their means for the season. If they can’t/don’t, they’re kicked out.