Business Law Seminar

981 Words Jul 30th, 2014 4 Pages
Business Law Seminar Report
Analysis of Gladiators FC Case

In order to explore all the possible solutions to the crisis of Gladiators FC club, first of all, we need to have a thorough and clear vision of the actual situation faced by the club and point out the advantages and disadvantages they have. Then based on the analysis of the situation, we may suggest several potential ways to get the Gladiators FC club out of crisis.
The Situation Analysis
Advantageous condition for the financial problem of the club
The club has its own stadium and training facilities which are funded by accumulating a large amount of debt.
The star players in the club are still very popular with fans, and due to their presence in the team, shirt sales as
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The club can accept the commercial advertisement offers to gain the profit, furthermore they try to raise the price of the related products of players or the team to gain more revenues from the sales.
Since a consortium of foreign investors has interest in rescuing the business and improving the performance of the club under the circumstance that the debt is reduced or rescheduled, the club can try to negotiate with the consortium to agree on a valid contract. The content of contract, for example, can be that if the team succeeds in wining a certain grade in the next football season, the consortium should decide to invest in exchange. If the team obtains the investment successfully, it should first pay a part of the debt of Bank Beta in case of worse situation.
Due to the agreement of the preliminary negotiation with the bondholders, Gamma Bank and trade creditors, the team can choose to ask for a partial write-off and the rescheduling of the maturity dates.
According to the financial advisor of the team, the current market value of Bank Beta’s collateral is lower than the face value of its secured claim. Therefore, based on the rules relevant to pledge in the property law, the team can meet its liabilities by letting Bank Beta coping with the pledge.
8) At last, if all the above possible solutions can not change the situation of the Gladiators FC club, the club can take into account asking for

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