PSV deep in red
Football club PSV is passing the begging bowl around Eindhoven, now that last season’s figures show a loss of 17.5 million euros. PSV have appealed to Eindhoven’s city council for financial assistance, according to populist daily . It is reported that the club will also call upon multinational Philips for support.
A spokesman for Eindhoven’s municipal council confirmed that various options had been discussed, including the sale of ground in the stadium terrain and the allocation of a loan under favourable terms. Arnoud Strijbus said that while the club was important for generating revenue in the city, the financial problems of PSV would have to resolved internally.
PSV could even face bankruptcy if the Eindhoven squad doesn’t manage to bring home the national cup this year or to get through to the Champions League. McKinsey consultancy firm has already been hired in to help get the finances back on track.
PSV chief Tiny Sanders and board chairman Peter Swinkels announced that jobs have to be axed regardless of whether PSV qualify for the Champions League or not. Without a place in the Champions League, the financial losses could reach a catastrophic thirty million euros.
Whether Philips, PSV’s main sponsor, will be willing to dip into its pocket remains to be seen. The multinational’s first quarterly figures were disappointing and the company in struggling with its TV production which will be outsourced to China. It is reported that PSV could suggest that it receive its sponsorship money for the next few years in one lump sum.
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