Published: 21 May 2012 - 16:47:06
Tottenham's exclusion from the Champions League due to Chelsea's triumph in the tournament will cost Spurs up to £35million in cash - but the real damage could be far greater in terms of keeping their stars, say football finance experts.
Brendan Guilfoyle, a football expert at P&A Partnership, said the headache for Spurs will not just be about balancing the books.
"In terms of the effect financially, Spurs is a well-run club but revenues will inevitably be lower so they will have to adjust that in terms of the wages they can offer and the transfer fees they can pay and still remain in the black," he said.
"The perhaps more immediate worry for fans, and I am a Tottenham fan myself, is that in terms of signing top players we won't be as attractive as we cannot promise the highest level of club football any more.
"There is also the worry that some of those star players, having tasted the Champions League already, will want to do so again and look to move elsewhere."
Spurs finished fourth in the Barclays Premier League, which would normally guarantee a place in the qualifying rounds of the Champions League, but they lose out because Chelsea take that fourth English place as European title holders.
Tottenham will earn only around £5m in media rights from the Europa League instead of a guaranteed £25m from the Champions League. There is also a significant loss in associated matchday, merchandise and sponsorship income that could see a further cost to the club of around £10million.
Even more concerning for fans is the possibility of star players such as Luka Modric and Gareth Bale pushing for a move to clubs that are in the Champions League next season.
Spurs fans have reacted furiously to missing out on Europe's elite club tournament but UEFA say their competition rules, brought in after Liverpool won the competition but finished outside the top four in the Premier League, are clear.
Tottenham earned 31.1m euros (£25.1m) in TV money and bonuses from their 2010/11 season in the Champions League. An English club making the Europa League quarter-finals earns a total of 6m euros (£5m).
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FOREX-Euro slides but may see short-term bounce - Reuters
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FOREX-Euro gets respite, but stays under pressure - Reuters
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How charity finance directors can become chief executives - The Guardian
Charity finance directors could be ideally placed to lead their organisations in an age of social bonds and performance-related-contracts, said Paul Palmer director of the Centre for Charity Effectiveness, last week.
Speaking at the Charity Finance Group's annual conference, he also suggested that finance directors who wanted the top roles in charities should try to change their job title to something other than finance director, take on special projects, broaden their focus from just finance and become a trustee: 51% of chief executives in the FTSE 100 were previously finance directors; it doesn't seem to be the same at charities, said Palmer.
But the director told several hundred delegates that a new financial landscape could pave the way for finance directors to step up. Palmer said: "As charities move away from grants to contracts and loans, leaders might require very different skills. If your charity is going down this route, there's a clear leadership role for the finance director. The move to chief executive can be an exciting journey, but you need to overcome some perceptions. And it's not an easy ride."
One piece of advice for finance directors was to look at changing their job title. "The title might be detrimental – there are perception issues with it. Trustees want the finance director to be a safe comfort blanket; they want you to conform to your role, so the title might not help you break out of that role. Change it and they might see you in a different light," said Palmer.
In the session 'How financial directors get to lead and be involved in strategic planning', Palmer also pointed out that most chief executives still came from outside the sector. "Charities still primarily import CEOs rather than export, which gives some idea of how trustees see people in the sector. But your knowledge and experience of the organisation should give you a competitive advantage. Trustees think you can understand the sector by reading a book, but it takes years," he explained.
Other advice was to be a trustee of another charity. "Two thirds of CEOs are also trustees at other charities. Resist being pigeon-holed as treasurer – take on another position."
In addition, he said chief executives should have vision, sharp people skills, a constructive relationship with the chair, be a good leader and communicator, and should understand marketing and fundraising.
"Think about your personal development. Work on your weaknesses rather than further developing your strengths. Get a coach if needed," Palmer told delegates.
Mark Watts, the recently retired chief executive of the RSPCA, told how he was offered the role when he retired from a finance director's position. On leaving, he sent a detailed document to trustees about how he thought the charity could be strengthened. It was well-received and they asked him to stay on as chief executive.
"I'd worked at the RSPCA for 28 years and saw six CEOs come and go. I had thought about going for the job but I wasn't confident enough," said Watts. "Most finance directors are very reserved and self-effacing, and trustees want to keep a good finance director in position." His advice was to "not be passive; express your opinions".
Watts added that finance directors should be the chief executive's "right hand man" and aware of drivers across the whole charity. "Have a good idea of how the organisation is performing, not just financially. Have clarity of vision and be able to communicate that. Have passion for the cause and make the impossible possible. And, don't be scared to ask questions because you think you'll look foolish," he told the audience.
Watts concluded by saying that finance directors should not underestimate the importance of their contribution at a time when financial recovery will be slow. "Maybe sometime you'll take on the reins, I promise you won't regret it," he said.
Other sessions focused on good leadership in general. Dr Robina Chatham, a training consultant and neuroscientist, said that in the current financial climate it was tempting for an organisation to just "try to survive", but it was important that the chief executive managed the future at the same time.
Chatham said that research she'd conducted with Cranfield University had found that long-term success for leaders came from understanding the world they work in. She discussed how important it was to understand covert and non-covert agendas at the office and who holds power and influence. "It could be those who are smokers who get together outside, it could be people who are fun to be with," she explained.
She also highlighted the importance of networking. "Lunchtimes are not for sitting at your desk with a sandwich if you want to be a leader," she said. "They're for networking. This is where people will share covert agendas in a less formal environment.
"And, innovative ideas come from making connections with people we don't know very well. If we stick to our friends in our team, you just get renovation, not innovation. Sparks of ideas come from conversation with someone from a totally different background. If you're not networking, you're not allowing the opportunity for really innovative ideas and you'll have no vision to inspire the organisation: 75% of your time should be spent on communication, innovating and networking," said Chatham.
She concluded that the top five traits leaders needed were high integrity, empathy, passion for motivation, courage to take risks and vision for the future.
Speaking on skills development for staff, Helen Simmons, finance director at London Diocesan Fund, offered a number of insights. She said that finance teams learn better when "doing" a task rather than reading about it or watching a demonstration.
Job swaps and shadowing also helped staff understand more about how a charity works, increasing empathy and allowing staff to cover for each other during times of sickness because they knew more about different roles.
Simmons said that at the beginning of every new job she had a meeting with all the staff: "Even if it's just for 10 minutes, find out if the job description matches the role and whether they have all the tools for the job.
"Staff need to have their needs met to do a good job. They need to feel biologically and physically safe, a sense of belonging and self-esteem. And, if they have personal issues, you need to try to understand these.
"You also need to be fair and transparent with pay and benefits. There's no point in providing biscuits if you haven't got these basics right," said Simmons.
She added that finance directors who wanted to step up to the chief executive position should gradually expose themselves to office and organisational politics and should also use any opportunities to present to staff and join project groups.
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India presents white paper to check illegal money - BBC News
India's Finance Minister Pranab Mukerjee has proposed the setting up of fast-track courts to deal with the issue of illegal money and tax evaders.
Mr Mukerjee said the government had already brought five bills in the parliament to deal with the problem.
The minister presented a "white paper" on illegal money in the lower house.
It did not name any offenders or give any estimates for illegal money but earlier reports have said $500bn was deposited in overseas tax havens.
Outlining the various proposals to deal with the problem of black money, the minister suggested that anti-corruption ombudsmen be appointed at the central and state levels.
"While these measures will set the tone for an equitable, transparent and a more efficient economy, there is much that we could do, both individually and collectively, to strengthen the moral fibre of our society," Mr Mukerjee said.
In the past, officials have said that illegal funds were often sent to tax havens such as Mauritius, Switzerland, Lichtenstein and the British Virgin Islands among others.
Analysts say this flight of capital has helped widen inequality in India.
According to one estimate, India's underground economy accounts for 50% of the country's gross domestic product.
In recent months, India's Congress party-led government has been on the back foot on the issue of black money and corruption.
The Supreme Court has also chided the government for not doing enough to unearth illicit money.
Money race tightens for general election - Fresno Bee
The campaign also spent nearly $2 million on placing ads.
The Obama campaign, far more than Romney's, has invested in its online presence. Obama spent more than $2.3 million last month on online advertising; Romney spent $150,000.
Payroll expenses revealed another disparity. Obama, who has invested heavily in field organizers in battleground states, spent $2.4 million on campaign staff, nearly five times what Romney spent on payroll.
Overall, last month's takes showed a slowdown in fundraising for the candidates and several major political action committees that support them. Restore Our Future, the pro-Romney group that, like other "super PACs," can solicit unlimited contributions from individuals, unions and corporations, raised a net $3.9 million in April, a decrease of more than 50 percent from the previous month. It ended April with $8.2 million in the bank.
Priorities USA Action, the super PAC supporting Obama, brought in $1.6 million in April, nearly $1 million less than its March take. It ended the month with $4.7 million in the bank.
The bulk of the pro-Obama group's money came from labor unions. Associations representing air traffic controllers, social workers and pipe tradesmen gave more than $1.25 million.
Investors gave more than $1.7 million to Restore Our Future, with $1 million coming from Fort Worth hedge fund founder John Kleinheinz. The group also brought in $1.1 million from energy executives, including $985,000 from Harold Hamm, the billionaire chairman of Continental Resources of Oklahoma who is the chairman of Romney's energy advisory panel. Hamm has sharply criticized Obama for not approving the Keystone XL oil pipeline from Canada to the Gulf of Mexico. His company owns some of the largest holdings in oil fields in North Dakota and Montana, which could be served by the pipeline.
Some of the moneyed backers of other Republican presidential hopefuls have begun to migrate to Romney, the new filings showed. Jack Caveney of North Palm Beach, Fla., a supplier of communication products and a longtime Republican donor, had been a major backer of former candidate Rick Santorum's super PAC. Last month, he gave $100,000 to Restore Our Future.
But some of the biggest super PAC players have not yet come aboard. Sheldon Adelson, the Las Vegas casino magnate who, along with his family, dished out $21.5 million to a super PAC backing Newt Gingrich, did not give to Restore Our Future. Nor did Foster Friess, the biggest donor to the pro-Santorum super PAC.
American Crossroads, the heavyweight Republican super PAC founded in part by Karl Rove, posted anemic April numbers. It raised $1.8 million last month, buoyed mostly by a $1 million donation from Dallas investor and GOP mega-donor Harold C. Simmons. Simmons and his company have given $13 million total to American Crossroads this election cycle; in the last several months, he and his wife have also doled out a combined $2.1 million to super PACs supporting Romney, Santorum and Gingrich.
The super PAC ended the month with $25.5 million on hand, but the full scope of its war chest probably is substantially larger. The group has a nonprofit arm, Crossroads GPS, which is not required to disclose its donors.
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