Vices and virtues of endorsements in a club

Go ahead, I am a firm defender that the boards of directors should be obliged to present a minimum endorsement to be in charge of a club and that these guarantees, like it or not, should be personal to avoid interference from third parties. That said, I share that a 15% endorsement of the spending budget for FC Barcelona and Real Madrid It is today an important flaw in the legislation that must be resolved, although that will not end the vices and virtues of this obligation to any candidate to preside over the two most important sports institutions in Spain.

Let’s start with the virtues. Given the evidence that the controls by the partners are not as rigorous as required by the current size of these two soccer giants, the risk of responding financially to poor management is the most effective tool to impose good management. Always? No. If we look at the first mandate of Joan Laporta and that of Sandro Rosell-Josep Maria Bartomeu We will see that there is a dangerous constant for good governance and long-term sustainability.

The first year is always cleaned, charging if possible future contingencies to the mandate of the predecessor when it is no longer there. Raise the rugs. The next two or three years are marked by containment in spending to generate high profits and quickly release guarantees. And the end of the mandate arrives: without the losa from the toll of managerial fame, with enough profit to be able to minimize profitability and be more daring in the transfer market. Is it ringing?

And this is where the problem of endorsements comes in and its impact on the people who assume it. If you pay, you want to shine, even if the complexity of the business says that the power should be the executives. If you stop paying, you can lose your sense of responsibility and make decisions that you would not make in your own company. Few in your business spend $ 100 million on a heater.

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So yes, in favor of raising the Sports Law establish variable tranches to set the guarantees and that each club decides. In my opinion, and that will be the partners, that percentage or amount should be an average of the net profit of the previous 10 seasons and should be in force throughout the term. That fear of losing one’s money has to be there until the last day in office until there are no greater controls on the board or it is made clear that the executive branch is above the manager. And that the “I come here to command” is over.

Spanish soccer jumps onto the stock market, chapter 1

It is not an elite club, but this week has been an important milestone for Spanish football. It does not imply any sports title, not even a great feat on the pitch. What’s more, this feat has taken place on another floor, the parquet, and specifically on the Madrid Stock Exchange. There, CF Intercity debuted as a listed company with the traditional ringing of the bell, and the success was so resounding that it could not even trade normally. An excess of requests for the purchase of shares, in the face of little willingness to sell on the part of the owners, who have valued 100% of the club: 5.56 million euros.

Reference-www.elperiodico.com

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