Executive Transactions Mexican F1 Organizers Stage Promo Event Names In The News U.S. Investors Make Offer For Espanyol Real-Juventus Draws 8.1 Million On La 1 Fox Renews Serie A Rights In Latin America Brazilian Stock Car Round Moves Cities Flamengo Plans To Move Out Of Rio São Paulo Stadiums Nearing Beer Approval Euroleague Highlights Growth Since '00
SBD Global/February 28, 2013/FinancePrint All
German second-tier hockey club EC Hannover Indians Managing Dir Dirk Wroblewski said that the team "will file for bankruptcy immediately" as it is unable to pay its bills, according to the DPA. The result of this revelation "will be relegation from the league." Whether the team of head coach Christian Künast will finish the current season or not lays with the administrator. The club's financial troubles have become so severe that team officials "called for a merger with German Hockey League (DEL) club Hannover Scorpions or a move to the TUI-Arena." Wroblewski said after many talks both ideas "didn't prove to be real alternatives" (DPA, 2/27).
China Business News reported a Guangdong shoe manufacturer for Nike "has cut its work force to 4,000 from 13,000 since the global financial crisis five years ago," according to WANT CHINA TIMES. The factory manager, surnamed Wu, said that the factory "has no recruitment plans even in the current hiring season after the Chinese New Year holiday." Rising labor costs and intense competition have put large sportswear companies, such as Nike and Adidas, "in a dilemma about slashing profits or making fewer products." Another Guangdong manufacturer who has contracts with Nike told China Business News that "it plans to raise quotes because minimum wages in China have skyrocketed over recent years." The manufacturer also admitted that it was "very likely to receive fewer orders" (WANT CHINA TIMES, 2/27).
Sussex County Cricket Club announced a deficit of £325,375 ($493,333) in its accounts for the financial year to Oct. '12, according to the BBC. The club recorded an operating surplus of £227,775 ($345,352) "but depreciation of assets led to an overall loss." Sussex Chair Jim May said, "Sussex is a stable club with no borrowings and cash reserves of around £1 million. The county club business model is marginal and without our success in one day competitions, Sussex would have made an operating loss." Sussex treasurer Simon Crundwell added: "Whilst a £227,000 operating surplus is a credible outcome, it was boosted by the one-off receipt of £133,000 in respect of the settlement of a legal claim. Alongside continuing challenging economic conditions, the unseasonal weather in 2012 contributed in part to our match income being 22% down on [the] prior year" (BBC, 2/27).
MORE CRICKET: Glamorgan County Cricket Club reported an operating loss of £315,793 ($478,805) for the financial year, yet announced a positive earnings before interest tax depreciation and amortization of £398,882 ($604,784). The county’s EBITDA represents a year-on-year improvement of £2.07M ($3.1M) while the aforementioned operating loss compares with a £2.06M in '11. The net cash balances on Dec. 31 2012 totaled £481,027 ($729,333) (Glamorgan County Cricket Club).
Brazil’s failure to upgrade its rail system in time for the 2014 World Cup is "giving a boost" to the country's biggest bus maker Marcopolo SA, according to Christiana Sciaudone of BLOOMBERG. Plans to build integrated metro, light rail and bus systems are being scaled back in "at least half of the 12 cities set to host games amid construction delays and cost overruns." Victoire Brasil Investimentos research analyst Bruno Wittmaack said that local governments are "falling back on buses" to transport sports fans because they are easier and cheaper, helping to fuel a 56% rally in the past 12 months for Marcopolo, which has 45% of Brazil’s market for the vehicles. Marcopolo will soon start delivering more buses for World Cup projects, “which we hope this year and in the first half of 2013 will have an enormous repercussion in terms of volume,” CEO Jose Rubens de la Rosa said on a Feb. 22 conference call to discuss earnings (BLOOMBERG, 2/26).