Turkey Super League club debts balloon over $1.6bn forcing radical rethink

Husnu Gureli

By Mark Baber
September 19 – Turkish Football Federation (TTF) Vice President Hüsnü Güreli (pictured) has said that the country’s 18 Super League clubs have managed to amass a debt of TL 3.5 billion ($1.66 billion) whilst money owed to them only amounted to TL 478 million ($160 million).

Speaking at a sport finance seminar organised by the Aktif bank, Güreli outlined the financial situation of the clubs, saying: “The income of the 18 Super League clubs is TL 1.8 billion. However, the total costs at the 18 clubs are TL 3.1 billion. As you understand, when you open your store you have already lost money, there is not even gross profit. You are at a loss of TL 309 million. How can these 18 clubs survive? I mean how can they operate with such a financial burden?”

Güreli said that a clean break needed to be made with the past and outlined the measures the TTF intended to take to tackle the dire situation saying: “We will create an asset reconstruction company and Super League Inc. on top of it. That is, we have to unite all trade interests, financial transactions and incomes of our clubs within a body of Super League Inc. in which we will create a brand value.”

With the project clearly still at the planning stage, Güreli outlined some of the consequences for the TTF and ways in which the scheme might be financed saying: “Maybe we will offer that company to the public. We, as the football federation, pay annually TL 40-45 million to amateur clubs although we don’t have to do such a payment by law. The 12 percent of bidding for the rights to broadcast the matches live, worth TL 450 million, is paid to TFF. If this income is blocked, the TFF cannot maintain its operations. So, maybe the payments made to the amateur clubs are taken over by the government by law. And the TFF’s share from the TV rights can be lowered to 8 or 6 percent.”

Meanwhile, at the same seminar, the Vice President of the Turkish Clubs Union Foundation, Mesut Hoşcan put the emphasis on the improving corporate governance within the existing club structure saying: “We, as the football clubs can never give up financial discipline. We have to implement a balanced sheet and go on with balanced sheets. We have to cut our coat according to our cloth. Besides, the criteria of UEFA is very dominant on this matter. Our clubs are suffering from bad financial situations but unfortunately we must put into practice such measures such as erasing points, transfer bans or even relegation punishments. We don’t say these, UEFA does.”

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