Is this the end of Portsmouth Football Club? Many fans and pundits think it could be, and this could all be down to cash flow problems.
It is reported by the BBC that due to Portsmouth’s insufficient ground capacity, the club relied heavily on TV payments to meet its monthly outgoings. When the Premier League withheld its TV payments in January 2010, the strain on the company’s cash flow was evident with players not been paid on time and management searching for new sources of finance. Accountancy Age reported that the club was looking to receive a cash injection before 17 February 2010 from an associate, but this never came. Cash flow is a key component in operating a successful business, and during a recession its importance cannot be understated.
It is reported by the BBC that due to Portsmouth’s insufficient ground capacity, the club relied heavily on TV payments to meet its monthly outgoings. When the Premier League withheld its TV payments in January 2010, the strain on the company’s cash flow was evident with players not been paid on time and management searching for new sources of finance. Accountancy Age reported that the club was looking to receive a cash injection before 17 February 2010 from an associate, but this never came. Cash flow is a key component in operating a successful business, and during a recession its importance cannot be understated.
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