Post by radovic on Nov 27, 2007 10:48:03 GMT -5
Partizan and Red Star up for grabs
Will the biggest Serbian clubs fall into the hands of tycoons
Author: B. Markovic | 27.11.2007 - 00:32
The sell-out of Serbia’s top football clubs could soon turn from fiction to reality, as some legal experts on sport say. Privatization is about to hit local biggest brands from Belgrade – Red Star and Partizan.
Marko Nicovic, member of International Narcotic Enforcement Officers Association, in charge of the organized crime department, speculates only time will tell whether the clubs turn into tycoon enterprises or another type of organization. Law on Privatization in Sport is in the process of being drafted, and is expected to be passed during 2008 and fundamentally change sport in Serbia. Nicovic claims huge sums of money are to be distributed once the process has begun, which could end in a war between novelty businessmen and mafia over the ownership of the two top Serbia clubs.
Professor Milan Kovacevic, a foreign investments consultant, says for Blic that current administration operate in favour of tycoons’ interests as their wish is to accumulate assets.
- “The idea was that the big ones get to purchase, while the rest remain sidelined. The process has been going on and assets have been accumulated in many ways. In order to end that sporting societies should make it official and present it in their mission statements, but a move like that hugely depends on political will,” says Kovacevic.
The expert on economics adds the first aspect to be reviewed is whether the clubs would be sold together with their respective stadia.
- “It’s a big issue whether the new owners would also be in possession of the stadia or not. Clubs could become a public limited company in which case supporters could buy shares. The worst proprietary scenario is actually in power nowadays: clubs haven’t been privatized, but are a private property. Top clubs should be scrutinized separately,” says Kovacevic.
Grim prospects offered by Nicovic do not bother Red Star chairman, Toplica Spasojevic. He claims he is to propose the so called Spanish model of privatization.
- “The advantage will be given to those who spent their careers in Red Star – former players and members of staff, as well as those close to the club. The aforementioned together with the local authorities representatives would own have the shares, while the rest would be offered to open tender. Naturally, the appropriate law will need to be passed first,” says Spasojevic.
Participation of representatives of local authorities would be a reasonable solution according to Spasojevic as Partizan and Red Star cannot be treated as any other club, being national brands.
- “That’s why the public, along with local authorities, need to have a greater insight into the big ones’ business,” says Spasojevic.
Another model could be the one applied in England. Professor Bozidar Cerovic, once an active member of Red Star and national FA, suggests there are no universal solutions for clubs privatization, especially those that guarantee immediate success.
- “In the western leagues clubs own their assets, namely the stadium, while there are very few of those who have been privatized fully. There are 30 of those at the most in Europe, half of which are in England. However, this hasn’t proven as the most comprehensive solution,” says Cerovic.
He also claims there are few clubs which can be bought on the stock market, but also few of those that manage to stay in the black.
Cerovic says one should not jump to conclusions regarding privatization as the contents of the law are what matters the most.
- “Stadia should first become club property as they practically are part of a club’s real estate, although they are formally public property. It has been the case for thirty years, and they haven’t been invested in during that time. Players’ contracts should be added to the figure. Clubs can operate as companies, enter the stock market or find another special solution,” says Cerovic.
Many expect privatization will cause internal clashes as a multitude of interests are bound to be involved. The matter will, according to Cerovic, have to be have to be legally regulated as to who and how they can purchase club shares.
- “A number of limitations will be imposed, but only the practice will show what future owners will be most keen on – football or business,” says the professor.
He also says that in the case of Red Star and Partizan there should be no rush in the process of chairman appointment due to tradition, the supporters and other special aspects.
Tomislav Karadzic: ‘We don’t get to choose the investor’
Partizan chairman Tomislav Karadzic expects the government to make the legal outline until the end of the year, which should enable the selling of clubs.
- “Partizan should become a joint stock company, where everyone who used to work and now work, both players and administrators, would own shares, with also the owner of the majority of shares. We must soon begin the process of privatization. The entire Serbian sport is in a difficult position at the moment, which can be seen by the recent results of our national teams. Unless privatization takes place, it will be extremely hard to climb up from the abyss.”
Who would make a perfect strategic partner for Partizan?
It doesn’t matter if the investors are domestic or from abroad. It would be a positive thing if there was had a strong enough investor, who could buy Red Star or Partizan. A foreign investment would be the most realistic scenario,” says Karadzic.
Toplica Spasojevic: ‘I have no figure in mind’
Toplica Spasojevic, Red Star chairman, is nowadays preoccupied by strengthening his club as the newly-appointed chairman. He leaves the issue privatization for a later time.
Some say your task is to clear the path for future buyers of the club.
- “I’ve already stated I will take no part in the privatization process of Red Star. I also have no concrete figure in mind for which the club would be sold.”
An approach like that could potentially jeopardise your ambitious plans. You are in the process of setting up a new administration, while a new owner might come sooner rather than later.
- “That might happen as well. Until we’re fully aware of what is or isn’t legally possible, we can’t consider the big picture of our vision in different conditions. If the solutions were coordinated, they would already have been passed in Parliament.”
Are you planning to be one of the shareholders of Red Star?
“That is really beyond the focus of my attention at the moment. We’re giving our all to raise the level of our performance in all aspects and in the framework we have at disposal. It’s hard to say how much time will pass until privatization actually takes place,” concludes Spasojevic.
Will the biggest Serbian clubs fall into the hands of tycoons
Author: B. Markovic | 27.11.2007 - 00:32
The sell-out of Serbia’s top football clubs could soon turn from fiction to reality, as some legal experts on sport say. Privatization is about to hit local biggest brands from Belgrade – Red Star and Partizan.
Marko Nicovic, member of International Narcotic Enforcement Officers Association, in charge of the organized crime department, speculates only time will tell whether the clubs turn into tycoon enterprises or another type of organization. Law on Privatization in Sport is in the process of being drafted, and is expected to be passed during 2008 and fundamentally change sport in Serbia. Nicovic claims huge sums of money are to be distributed once the process has begun, which could end in a war between novelty businessmen and mafia over the ownership of the two top Serbia clubs.
Professor Milan Kovacevic, a foreign investments consultant, says for Blic that current administration operate in favour of tycoons’ interests as their wish is to accumulate assets.
- “The idea was that the big ones get to purchase, while the rest remain sidelined. The process has been going on and assets have been accumulated in many ways. In order to end that sporting societies should make it official and present it in their mission statements, but a move like that hugely depends on political will,” says Kovacevic.
The expert on economics adds the first aspect to be reviewed is whether the clubs would be sold together with their respective stadia.
- “It’s a big issue whether the new owners would also be in possession of the stadia or not. Clubs could become a public limited company in which case supporters could buy shares. The worst proprietary scenario is actually in power nowadays: clubs haven’t been privatized, but are a private property. Top clubs should be scrutinized separately,” says Kovacevic.
Grim prospects offered by Nicovic do not bother Red Star chairman, Toplica Spasojevic. He claims he is to propose the so called Spanish model of privatization.
- “The advantage will be given to those who spent their careers in Red Star – former players and members of staff, as well as those close to the club. The aforementioned together with the local authorities representatives would own have the shares, while the rest would be offered to open tender. Naturally, the appropriate law will need to be passed first,” says Spasojevic.
Participation of representatives of local authorities would be a reasonable solution according to Spasojevic as Partizan and Red Star cannot be treated as any other club, being national brands.
- “That’s why the public, along with local authorities, need to have a greater insight into the big ones’ business,” says Spasojevic.
Another model could be the one applied in England. Professor Bozidar Cerovic, once an active member of Red Star and national FA, suggests there are no universal solutions for clubs privatization, especially those that guarantee immediate success.
- “In the western leagues clubs own their assets, namely the stadium, while there are very few of those who have been privatized fully. There are 30 of those at the most in Europe, half of which are in England. However, this hasn’t proven as the most comprehensive solution,” says Cerovic.
He also claims there are few clubs which can be bought on the stock market, but also few of those that manage to stay in the black.
Cerovic says one should not jump to conclusions regarding privatization as the contents of the law are what matters the most.
- “Stadia should first become club property as they practically are part of a club’s real estate, although they are formally public property. It has been the case for thirty years, and they haven’t been invested in during that time. Players’ contracts should be added to the figure. Clubs can operate as companies, enter the stock market or find another special solution,” says Cerovic.
Many expect privatization will cause internal clashes as a multitude of interests are bound to be involved. The matter will, according to Cerovic, have to be have to be legally regulated as to who and how they can purchase club shares.
- “A number of limitations will be imposed, but only the practice will show what future owners will be most keen on – football or business,” says the professor.
He also says that in the case of Red Star and Partizan there should be no rush in the process of chairman appointment due to tradition, the supporters and other special aspects.
Tomislav Karadzic: ‘We don’t get to choose the investor’
Partizan chairman Tomislav Karadzic expects the government to make the legal outline until the end of the year, which should enable the selling of clubs.
- “Partizan should become a joint stock company, where everyone who used to work and now work, both players and administrators, would own shares, with also the owner of the majority of shares. We must soon begin the process of privatization. The entire Serbian sport is in a difficult position at the moment, which can be seen by the recent results of our national teams. Unless privatization takes place, it will be extremely hard to climb up from the abyss.”
Who would make a perfect strategic partner for Partizan?
It doesn’t matter if the investors are domestic or from abroad. It would be a positive thing if there was had a strong enough investor, who could buy Red Star or Partizan. A foreign investment would be the most realistic scenario,” says Karadzic.
Toplica Spasojevic: ‘I have no figure in mind’
Toplica Spasojevic, Red Star chairman, is nowadays preoccupied by strengthening his club as the newly-appointed chairman. He leaves the issue privatization for a later time.
Some say your task is to clear the path for future buyers of the club.
- “I’ve already stated I will take no part in the privatization process of Red Star. I also have no concrete figure in mind for which the club would be sold.”
An approach like that could potentially jeopardise your ambitious plans. You are in the process of setting up a new administration, while a new owner might come sooner rather than later.
- “That might happen as well. Until we’re fully aware of what is or isn’t legally possible, we can’t consider the big picture of our vision in different conditions. If the solutions were coordinated, they would already have been passed in Parliament.”
Are you planning to be one of the shareholders of Red Star?
“That is really beyond the focus of my attention at the moment. We’re giving our all to raise the level of our performance in all aspects and in the framework we have at disposal. It’s hard to say how much time will pass until privatization actually takes place,” concludes Spasojevic.