This week’s blog focuses its attention on football which is a timely subject as we’ve just witnessed the domination of the "wealthy" premier league clubs against the smaller lower league teams in the FA Cup.
I say wealthy, but I’m sure when you look at the P&L accounts of the teams in the premier league the majority will be in the red. Whereas the smaller local teams aren’t allowed to be in debt for fear of going into administration!
The same seems to apply to business – have you read about the handful “phantom companies” – apparently there are loads of larger companies which are probably bust but are kept alive, because the banks don’t want to crystalise any losses.
The financial comparisons made between large commercial football clubs and small local teams are thus mirrored in how businesses are treated. Larger corporates are allowed huge debts and extended credit while smaller businesses are penalised for over spending in an attempt to grow.
Surely there should be a greater emphasis placed on supporting your local team/business?