Menu
Download the app

SBJ subscribers – Enhance your experience with the revamped iOS app

Olympics

Olympics Security Fiasco Costs G4S As Shares Plunge

G4S's shares plunged as much as 10% as investors reacted to the admission by the world's biggest security company that it "would not be able to provide enough guards for the Olympics," according to Gill Plimmer of the FINANCIAL TIMES. The estimated £50M ($78.1M) hit to the company, continued uncertainty over the future of its CEO Nick Buckles. Chair John Connolly met leading investors amid speculation that Buckles "may be forced to resign." Connolly, who only joined on June 8, has urged against "knee-jerk" reactions, but in an interview with the FT "declined to express outright support for the CEO." Seymour Pierce Analyst Kevin Lapwood said, "Clearly he's [Buckles] got to go. We think he will fall on his sword along with other senior management (FINANCIAL TIMES, 7/16).  In London, Travis & Taylor reported that the slide in the G4S share price "reflected the Olympic-sized blow to the private security company's reputation" not only in Britain but throughout its global operations. G4S is now the largest player in global security, with "8% of the market and contracts" that include protecting ships from pirates in the Indian Ocean, and supplying security systems to the Pentagon. However, its proud boast to be "securing your world, in more ways than you might realise" has been dealt a massive blow by overstretching itself on such a high-profile contract. G4S's global operations, with a turnover of £7.5B ($11.7B) a year, will help it ride out the storm, but the "damage will be keenly felt in its British operations." The company has 52,570 staff in the U.K. and Ireland, more than 50% of whom are "involved in public sector contracts" worth more than £1B ($1.6B) a year (GUARDIAN, 7/16). Also in London, Taylor & Booth reported that officers from nine police forces are "drafted in to fill the gaps in Olympics security." It emerged that hundreds of officers from forces across the country were "being drafted in to work alongside the extra 3,500 military personnel." Assistant Commissioner Chris Allison, the National Olympic security co-ordinator, said that officers from Dorset, Surrey, Hertfordshire, Northumbria, South Wales, Strathclyde, West Midlands, Thames Valley police and Greater Manchester "had been deployed to provide security at venues in their areas" (GUARDIAN, 7/16). The FINANCIAL TIMES DEUTSCHLAND reported that G4S temporarily lost about £400M ($625M) of its market value. Buckles is "already banged up" after the acquisition of Danish cleaning company ISS for an estimated £5.2B ($8.1B) failed (FINANCIAL TIMES DEUTSCHLAND, 7/16).

SBJ Morning Buzzcast: March 25, 2024

NFL meeting preview; MLB's opening week ad effort and remembering Peter Angelos.

Big Get Jay Wright, March Madness is upon us and ESPN locks up CFP

On this week’s pod, our Big Get is CBS Sports college basketball analyst Jay Wright. The NCAA Championship-winning coach shares his insight with SBJ’s Austin Karp on key hoops issues and why being well dressed is an important part of his success. Also on the show, Poynter Institute senior writer Tom Jones shares who he has up and who is down in sports media. Later, SBJ’s Ben Portnoy talks the latest on ESPN’s CFP extension and who CBS, TNT Sports and ESPN need to make deep runs in the men’s and women's NCAA basketball tournaments.

SBJ I Factor: Nana-Yaw Asamoah

SBJ I Factor features an interview with AMB Sports and Entertainment Chief Commercial Office Nana-Yaw Asamoah. Asamoah, who moved over to AMBSE last year after 14 years at the NFL, talks with SBJ’s Ben Fischer about how his role model parents and older sisters pushed him to shrive, how the power of lifelong learning fuels successful people, and why AMBSE was an opportunity he could not pass up. Asamoah is 2021 SBJ Forty Under 40 honoree. SBJ I Factor is a monthly podcast offering interviews with sports executives who have been recipients of one of the magazine’s awards.

Shareable URL copied to clipboard!

https://www.sportsbusinessjournal.com/Global/Issues/2012/07/17/Olympics/G4S.aspx

Sorry, something went wrong with the copy but here is the link for you.

https://www.sportsbusinessjournal.com/Global/Issues/2012/07/17/Olympics/G4S.aspx

CLOSE