SHEFFIELD, UK – The recent news over the holding club of the Sheffield Steelers going into liquidation has taken the fan-base by surprise. If you are not aware, the main part of the statement released by the club onto the official website is as follows:
It is with regret that the Sheffield Steelers confirm that they have had to call in liquidators to one of their associated companies, Yorkshire Sports. These actions are being taken to ensure that the future of the Steelers is not affected going forward into next season and beyond. Season ticket holders can rest assured that their monies have been ring fenced prior to the start of the season and all season tickets are fully protected and will be honoured. This will not have any adverse affect whatsoever on season ticket holders.
A former sponsor from 2008-09 who reneged on their sponsorship payments has put the company in an untenable position, in addition to this we have suffered additional financial losses due to one of last seasons sponsors also being unable to meet their financial obligations to the company. The club has taken detailed, expert legal and financial advice to help us at this difficult time and unfortunately we have been advised that Yorkshire Sports has no real alternative but to ask for liquidators to be called in.
As explained above, one of the main reasons as to the liquidators being brought in for Yorkshire Sports is the non-payment of sponsorship money from two sponsors of the club over the past two seasons. Of course we shall not be speculating as to who the companies are, for obvious reasons; however what is clear, is the damage it has, and no doubt will have done to the club.
Unless the funds can be found to cover all the debts owed to the different companies that have been affected by this, then potentially the new ‘holding company’ will struggle to negotiate favourable terms with suppliers and other companies that are needed throughout the coming months, because even though the new holding company will not be called Yorkshire Sports, they will still have the Sheffield Steelers association that will come with it.
Not only from a business perspective, will this potentially have done harm towards the fan base, and in particular, those who do not go on a regular basis and their only outlet of ice hockey news, is the local press. The Star has given the incident extensive coverage over the last weekend, and although the content of which has been reported merely describes the situation; it is as ever the headlines which catches the attention of people. I personally have received calls from people who watch the Steelers occasionally asking me is it true about the club folding.
Was The Star right to put the headlines out that it did? Who knows? Although they have given the Sheffield Steelers extensive coverage over the years, their main objective is to sell papers, and with that sort of headline – it will do, but did it help put the correct ‘image’ across to the readership about the situation? Could The Star have chosen a different headline? Should The Star even have this amongst their considerations?
What is also of worry is the receipts of Season Tickets already purchased by supporters for the 2010/2011 season, and that the money that would normally be used to boost the recruitment for the new season, but to plug the debts from the previous holding company, therefore giving David Matsos a reduced budget to recruit from, and potentially have another season as the one just gone.
The club have gone on record on their official fans internet forum to say that the money collected from sales of Season Tickets are safe, and will be used in its primary use. This will assure the vast majority of the fans, but there will still be a fair percentage that will hold back in putting their hard earned money into the club. This is not helpful to the club, but it is something that you cannot blame Ice Hockey fans, after what happened with the Manchester Storm/Ayr Scottish Eagles fans and their Season Ticket money when these two clubs folded.
So how does the club go forward, and regain the lost ground caused by this story. Firstly it needs to go out into the readership area of The Star and put out a massive marketing campaign to ensure not only that the Sheffield Steelers are still out there, but also to encourage the community, both the fans and the business community that the club is one that they can do business with the club and have full faith in the product that they are investing in.
It also needs to re-assure the current fan base, because these sorts of stories will obviously put seeds of doubts amongst the fan base. Not only does the club need to reassure the business community it also needs to reassure the fan base that there is still a ‘feel-good’ factor amongst the club in preparation for the up and coming season.
Are the club doing this? Of course they are, and no doubt, they will continue to do so, ensuring that the message coming out the arena is one of positivity, and that it is ‘busy as usual’. Can that message be successfully come across to all strands of the fan base? Well lets hope so – because the club needs the fan base to be behind the club more so than ever – but that also needs to be earned, and not just as a given.
What I believe is required from the fan base, is a period of calmness. It is never good news to hear when your sporting club is flirting (in anyway shape or form) with financial difficulties, especially with a club that, unfortunately has gone through enough difficulties over the history of the club. What people need to do is to take a step back and think before making comments, either at fans meetings or on internet forums. Let me stress this is not based on any particular comment made by anybody in particular, but I know as much as anyone, how the heart will rule the head when it comes to talking about something as emotive as a sporting club, but before we act, lets think if what we’re doing is right and proper, and not just emotions getting the better of us.
That is not to suggest that everything is doom and gloom, nor is it to suggest that the garden is rosy and in full bloom – however what I am certain is that, with the right levels of efforts from the club, in ensuring that the corporate side of things and the supporters are still onside, and that the supporters back this by acting in the right way – I am certain that the club will come out at the end of this in a better shape, and one that will be ready for the new season.
Contact the author David.Grant@Prohockeynews.com
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