Corporate backers believe in future of viable JPL clubs

PRICEWATERHOUSECOOPERS MANAGING Director, Wilfred Baghaloo, said though an assessment of the viability of Jamaica Premier League (JPL) clubs on the Jamaica Stock Exchange (JSE) is yet to be done, he sees no reason why they cannot become profitable.

The JPL recently signaled its intent to list three clubs, Harbour View, Arnett Gardens and Montego Bay United, on the JSE, for the first time in local history.

Auditors, PricewaterhouseCoopers, are helping the JPL to ascertain the potential viability of the JPL's intended direction.

Baghaloo told The Sunday Gleaner some local clubs have the base to make the transition to the JSE. However, in order to become viable, he insists proper governance structures must be in place along with a clear business plan.

“It requires a lot of discipline and professionalism from the clubs. Strong corporate governance, a good board of directors and a clear distinction between the board of directors and the management of the team.

Full assessment

“We are in early days yet. We are hoping that in the next four months, we will have a full assessment of the real possibilities. But I do not have enough information to think as yet,” said Baghaloo.

“But I see no reason why it cannot work. Entertainment and sports worldwide are big businesses and football is a big business. We have small clubs in Jamaica that are well structured and are successful relatively.

“Once we get the corporate governance of these clubs correct, the market will participate and many in the private sector will participate.

“So once the governance is clear, the structure is clear and the business model is clear, we can look at the possibilities,” he said.

“We have not started work as yet. We hope to start (assessment) in about two weeks then I can comment better on if we have a viable proposition or not.”

Baghaloo noted that there were local clubs with have good revenue streams such as gate receipts and selling paraphernalia. He also implored clubs to take their concessionaire businesses much more seriously.

He added also that having JPL clubs on the stock exchange will enhance the league as a product.

“TV rights will go up if the product improves.”

Baghaloo said their role as financial adviser is to speak with the clubs, discuss their business plans, help them build a business case and a business plan to take to the financial market through NCB Capital Markets, which is also assisting.

“They (NCB Capital) will decide if it is bankable or if the market will accept it. Our role is to prepare the clubs and ensure that they are a bankable project, which are projects suitable for the capital market through the stock exchange,” he explained.

He added that PricewaterhouseCoopers believes in the dream of Professional Football Jamaica Limited (PFJL) chairman Christopher Williams, to make football clubs attractive, viable entities on the market and that they are working diligently to make it a reality.

“This is a starting point. I am sure the objective is to improve the product as much we can.

“Right now we are seeing the dream of the chairman and we believe in his dream, we support his dream and hopefully we can bring the dream to reality,” he said.

livingston.scott@gleanerjm.com