VSI
Dallmeier

Business Directory

Browse the Directory

Sign Up to the Directory

Levy
FC Business Twitter
FC business Linked in
FC Business facebook
FC Business Youtube

Football faces 100m fraud concern

Thu 27th Oct 2011 | Money & Finance

A report published by PKF Accountants & business advisers and the University of Portsmouth has warned that football clubs are ill prepared to counter fraud, insisting that the majority of clubs have neither a plan in place nor the resources to tackle the issue. One of its authors, meanwhile, estimated that fraud could account for more than £100m each year across the professional leagues. 

Ticket sales, merchandising, payroll and agents' fees were identified as problem areas for clubs by the Fraud in Football survey, which was based on a survey of football club finance directors. 

Jim Gee, PKF's director of counter fraud services and one of the authors of the report, insisted: 'The results should give rise to serious concern since it is surely right to expect all clubs, regardless of their league, to protect themselves against a problem that on average costs businesses almost 6% of annual expenditure. The cost of fraud in football could account for well over £100 million per annum across all of the professional leagues.

'Our findings also chime with the Department for Culture, Media and Sports' recent assessment that football's 'corporate governance structures look like they belong to another era'.  We discovered that fewer than a quarter of clubs had their own internal audit function to keep track of revenues and costs – something that would be seen as wholly unacceptable in almost any other industry in the UK.

'Reducing the cost of fraud in football is an important issue as it affects the financial health and stability of not just the clubs themselves but, in many cases, the communities that live around them. Regardless of their league, if football clubs want to provide the best deal for their fans then they need to review the current practice and ensure that they are properly protected against fraud.'

http://www.buttonshut.com http://www.buttonshut.com http://www.buttonshut.com

---------------------------------------------------------------------------------------------------

RETURN TO LATEST NEWS SECTION

SUBSCRIBE TO THE F.C. BUSINESS RSS FEED

If you have any football business related news stories you’d like to share then please contact us –agourley@fcbusiness.co.uk or ryan@fcbusiness.co.uk

Add to: Google Google | Yahoo Yahoo | Live Live | del.icio.us del.icio | Digg Digg |

Related Articles

In Focus: Relegation. Can It Reduce Your Business Rates?

Mon 27th Mar 2017 | Money & Finance

It is that time of year again….the happy financial prospect of promotion for a few or the nightmarish vision of relegation for other clubs. So how does league status affect a club’s...

Chancellor Misses Rate-Relief Open Goal In Budget

Thu 9th Mar 2017 | Money & Finance

Rate relief for football in the community: An open goal for Government in 2017 Football clubs, large and small, will not benefit from any substantive ‘give-aways’ following the Chancellors...

Leicester City make pre-tax profit of 16.4m after winning Premier League

Thu 2nd Mar 2017 | Money & Finance

Leicester City today announced its financial results for the year ending 31 May, 2016 – a period of continued growth and unprecedented success for the Football Club. An historic, captivating...

Liverpool FC announces financial results for year to May 2016

Wed 1st Mar 2017 | Money & Finance

Liverpool FC has filed its annual accounts for the year to May 31, 2016 reporting that revenues are continuing to grow, creating further financial stability for the club. Overall revenue increased to...