The matter in summary Start has been transferred ten million in accordance with the dual model agreement, confirms managing director Sveinung Hedding-Valvik. The transfer took place before 30 June, the deadline for showing positive equity and avoiding penalty points. Despite a deficit of ten million in 2023, fresh capital from American investors has turned the situation around for the club. The ten million from the investors is not recognized as income, but goes in as a subordinated loan on the equity side. Start had to send an accounting report to the Norwegian Football Association by 1 September, which confirms that they have received the report. Start needs an average attendance of approximately 3,000 for the remaining matches to sustain its finances. The summary is made by an AI service from OpenAI. The content is quality assured by news’s journalists before publication. – The ten million that were to be transferred to Start in accordance with the agreement have been transferred. This is what the general manager of Start Sveinung Hedding-Valvik says to news. He confirms that the money was transferred before 30 June. That was the deadline when Start had to show positive equity to avoid a point penalty of two points. – They have arrived in accordance with the regulations. And all the reports have been approved by the auditor, and sent to the NFF within the deadline. From million deficit to surplus news has carried out a credit check of Idrettsklubben Start. It shows red numbers for the club, which in 2023 went with a deficit of just over NOK 10 million. In addition, the club receives the worst rating in relation to bankruptcy risk, with status 1 on a scale from 1 to 5. But fresh capital from American investors has turned the situation around. – Satisfied by industry Hedding-Valvik nevertheless admits that the club must work hard to reach the budgeted income. – The first half of this year produced a profit of NOK 178,000. It is wonderful that we are in the situation where income and costs are connected. – How difficult was it to get there? – It has been quite a tough job. We haven’t had the audience figures we could have wished for. Nevertheless, we have managed to have the finances of the games in place. The ten million from the investors is not recognized as income, but goes in as a subordinated loan on the equity side. The turnaround is therefore due to cost cuts, as well as savings. – Throughout last year, we worked to reduce costs, and have continued with this this spring. We have put corrosion after nutrition, says Hedding-Valvik. Sveinung Hedding-Valvik feels confident that the autumn will not involve fear of points being drawn and relegation. Here he is being congratulated after the extraordinary annual meeting, where the members voted for a dual model with the American investors. Photo: Kjetil Samuelsen / news The association confirms report Start had to send an accounting report to the Norwegian Football Association by 1 September. And this had to show positive equity in order for the club to avoid a points penalty of two points. At the Ullevaal stadium, they confirm that the papers have been received. – We have received financial reporting from IK Start, and all other clubs that are licensed. Now we use the time until the end of September to go through those reports. That’s what Rune Nordhaug, section leader for club support, says. He will neither confirm nor deny whether Start is exempt from penalty points. Rune Nordhaug confirms that they have received the papers from Start. Photo: Press photo / NFF – We will not issue any point penalties or other sanctions until we have everything ready. We have to get it through the club license board before we go out with something like this. Nordhaug assumes that the NFF will issue a joint statement for all clubs at the turn of September/October. The match against Vålerenga this summer had a total of 6,906 spectators, and contributed to raising the audience average at Start’s home matches this season. Photo: Tor Erik Schrøder / NTB Need 3,000 spectators per kamp Start is still struggling sportingly and is in a qualifying place to avoid relegation to the 2nd division. But financially, Hedding-Valvik will now re-register the club. He says they need an average attendance of about 3,000 for the remaining games. But the day-to-day manager feels confident that they can put financial unrest and fear of points deductions and relegation behind them. – I feel very confident about it. We have sent in and got in place documentation of the work that has been done and the agreement that was entered into. Published 12.09.2024, at 06.38
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Start has turned a million dollar deficit into a profit – news Sørlandet – Local news, TV and radio
