Club Restructuring

Club Sustainability Issues

The financial sustainability of sports clubs is highly dependent on the business model adopted and followed by the Club’s management.  Most sports clubs face structural financial hurdles stemming from the use of an inappropriate business model and seek to alleviate their financial difficulties through the injection of investor funds.  The injection of investor funds, however, does not ensure long-term financial sustainability unless the financial injection is utilized in ways that deliver sustainable results both on and off the pitch in the long-term. 

A successful strategy for sports clubs entails a shift in the end-goal.  For the most part, the stakeholders of sports clubs see success on the pitch as the main goal of the club instead of the club being financially robust.  Most sports clubs are not run as businesses seeking to maximize value and economic returns.  As a result, clubs do not devise and implement strategies which will yield them a clear competitive advantage and thus help them maximize economic returns and value.

How We Can Assist

At APC Sports, through our seasoned professionals, we help clubs become well managed and financially sustainable, with realistic forecasts and sensible budgeting.  Our strategic assistance allows clubs to concentrate on the game of sport and the pursuit of end-of-season results.  We are committed to ensuring that sports clubs achieve financial sustainability through sensible business and financial decision making, full utilization of their earnings potential and maximization of value through deals and synergies within the industry.

Our team of experts works in a hands-on manner and at close quarters with management, with a clear understanding of the main pillars behind a Club’s value;  from the ability to grow and trade players and division promotions, to capturing media rights revenue, enhancing and expanding its hospitality offering and Club brand leveraging through merchandizing and sponsorships.  From capacity to cash flow, APC’s industry experienced professionals help sports clubs achieve lasting strategic, operational and financial change for the benefit of all stakeholders.

    Post-Acquisition Services

    Club acquisitions can create havoc in the post-acquisition days, if not handled properly.  We offer a comprehensive suite of post-acquisition services which ensure the smooth transition into a new modus-operandi.  We work closely with the club management and stakeholders to help clubs emerge stronger and more profitable post-acquisition.  Our suite of services includes:

    • Preparation of a post-acquisition business plan for the Club’s way forward
    • Preparation and implementation of revenue enhancement and cost reduction strategies
    • Evaluation of club assets (on and off the pitch), identification of under-utilized assets and suggestions as to their optimal utilization
    • Thorough review and analysis of existing infrastructure in terms of its strengths and weaknesses, along with proposed enhancements/changes
    • Debt and capital restructuring and optimization
    • Support in making decisive changes and overseeing the implementation of such changes
    • Advising on brand-building, boosting engagement of both the local communities and the club’s international fan-base
    • Recommendations on actions for growth and development of sports academies

    Business & Financial Services

    We offer a range of business and financial services to accommodate the widest possible spectrum of needs that sports clubs can have, which include:

    • Financial reorganization and operational restructuring for underperforming clubs.  Review of the club’s present business and financial strategies and position and preparation of a restructuring plan (operational and financial) with the purpose of turning the club around and giving it a more predictable chance of turning investment into profit. Monitoring of the implementation of the restructuring plan.
    • Revenue enhancement and cost control consulting. Budget preparation and management.
    • Feasibility studies for athletic facilities projects. Analysis of the prospective revenue streams (naming rights, match-day, hospitality, events revenues, etc) and assessment of the project’s viability.
    • Valuation of sports clubs, sports facilities and sports venues which includes a valuation of the club’s value, sponsorship agreements, TV revenue, future income (tickets, merchandizing) and assets (venues, buildings, players etc.).
    • Preparations of business plans and feasibility studies for the establishment and development of sports academies