Case Study Overview
In the world of professional football, the definition of success often extends beyond the pitch. Football clubs these days are very much run as corporate entities.
With vast sums of money changing hands for player transfers, licensing agreements, sponsorships, and hospitality services, managing finances can become a complex endeavour.
When payments are missed or delayed, the implications can be significant. Federal Management recently delivered exceptional results for a Premier League football club, successfully recovering a substantial proportion of debts that had accumulated over several years.
This case study provides a comprehensive insight into how Federal Management leveraged its professional, accredited debt recovery services to recoup 94% of outstanding debts, totalling £2.4 million, on behalf of a top-flight English football club.
Background
Over a four-year period, the Premier League football club had accrued a total of £2.4 million in unpaid debts.
These debts stemmed from a variety of sources, including:
- Unpaid loan fees for temporary player transfers
- Outstanding licensing fees related to branded merchandise and intellectual property
- Unsettled kit fees from suppliers and third-party providers
- Final instalments of player transfer fees
- Expenses agreed for international friendly matches
- Overpayments in wages to former players
- Overdue advertising fees from commercial partners
- Unpaid hospitality bills linked to matchday experiences and corporate packages
Despite the club’s own credit control and legal teams making sustained efforts to resolve these issues, the complexity and fiscal diversity of the debt portfolio made recovery increasingly difficult, not to mention expensive.
Challenges
1. Complex Nature of Debtors
The debts were spread across 78 accounts, each with its own unique circumstances. Debtors included former players (some now living abroad), international football clubs, commercial sponsors, kit suppliers, and hospitality clients.
This mix of private individuals and corporate entities created varying legal and logistical challenges.
2. Aged Debt
Many of the accounts were classified as aged debt, with some dating back almost four years. Aged debt typically becomes more difficult to collect, especially when documentation may be incomplete or when debtors dispute the validity or accuracy of the amounts owed.
3. Reputational Risk
As a high-profile organisation, the football club was cautious about how debt collection efforts might impact its reputation. They required a professional solution that could operate discreetly and diplomatically, preserving relationships where possible while achieving results.
Federal Management’s Approach
Federal Management was appointed to handle the portfolio of cases based on our proven track record in recovering commercial debts and its accreditation by the Financial Conduct Authority (FCA).
Also our reputation for being a cost friendly solution towards the scourge of unpaid debts.
We adopted a tailored, strategic approach that included the following steps:
1. Comprehensive Account Audit
Federal Management began with a thorough audit of the 78 debtor accounts. Each account was assessed to determine the likelihood of recovery, identify key documentation, and segment the debtors by type (e.g., individual, corporate, international).
2. Dedicated Account Manager
A dedicated account manager was assigned to liaise directly with the football club. This ensured consistent communication, real-time updates, and a clear line of accountability throughout the recovery process.
3. Diplomatic and Professional Contact Strategy
The agency implemented a structured, multi-channel contact strategy that included written correspondence, telephone calls, Text messages and in some cases, direct meetings with debtors.
Emphasis was placed on professionalism, with all communications framed in a manner that reflected the football club’s prestigious standing.
4. International Debt Recovery Expertise
For international debts – such as those owed by foreign clubs for friendly matches or transfer instalments – Federal Management utilised its global network of agents. This ensured compliance with local laws and optimised recovery rates.
5. Legal Support When Required
In cases where amicable recovery was not possible, Federal Management escalated the matter through legal channels. Their in-house legal team worked with specialist sports lawyers to initiate proceedings when required, ensuring full legal compliance and due diligence.
Results
Within 12 months of engagement, Federal Management had recovered 94% of the total debt value, equating to over £2.25 million. Notably:
- All high-value accounts were resolved in full
- Former player overpayments were reclaimed via short, structured repayment plans
- A long-standing dispute with an overseas club regarding a final transfer instalment was successfully negotiated
- Advertising and hospitality debts were discharged without damaging commercial relationships
Key Outcomes
Financial Impact
The recovered funds provided a welcome boost to the football club’s cash flow, enabling reinvestment into youth development and community outreach programmes.
Operational Efficiency
By outsourcing the debt recovery process to Federal Management, the club’s internal finance team was freed from time-consuming and often frustrating recovery efforts.
Reputation Maintained
The discreet and professional approach taken by Federal Management ensured that all recovery activities were conducted without negative publicity or reputational damage.
Legal Risk Mitigated
All recoveries were conducted in full compliance with UK and international laws, minimising the risk of counterclaims or future disputes.
Conclusion
This case study highlights the immense value of engaging a professional, accredited debt collection agency like Federal Management.
Our strategic, ethical, and highly effective approach to debt recovery enabled a Premier League football club to reclaim a significant portion of monies owed across a wide range of complex and aged debts.
In an industry where image and relationships are paramount, Federal Management has demonstrated that it is possible to achieve robust financial outcomes without compromising on professionalism or integrity.
Whether dealing with multi million-pound transfer fees or unpaid hospitality bills, Federal Management stands as the UK’s trusted partner for commercial debt recovery in the world of football and beyond.
