The first report of a professional club going bankrupt occurred today March 20. This means nothing less than the end of the club. Many would expect that could happen to some insignificant club from some low league far in Asia or Africa, but the opposite is true. We are talking about MSK Zilina from the highest Slovakian football league.
Most of us don’t know much about Slovakia and even less know anything about Slovakian highest football league. MŠK Žilina is a seven-times winner of Slovakia league and is far from being average, since the actual table we see it on a position number 2. On Friday the club owner gave his players 2 options.
- Salary cut of core players. All of the players have shown the willingness to give up part of their money, but obviously not that much.
- Second option was bankruptcy. As the team owners came with the suggestion of 80% salary cut, all players refused and scenario B became real.
What followed was a notice delivered to 15 top A-Team players and the actual process of bankruptcy has been started Today.
Club’s statement – important parts (unedited)
– original to be found at official page of MSK Zilina.
Football Club MŠK Žilina belongs not only to traditional but also the most successful Slovak clubs of recent years. Our long-term strategy is to develop children’s talents to the point where they can make a living with adult football. Life and the current, unpredictable situation in the club brought us to the point where fun and football must go sideways, while health and the struggle to survive the most vulnerable must be an absolute priority for all of us.
Just as the whole society is currently affected, this unexpected situation is also reflected in the running of sports clubs, including MŠK Žilina.The club’s funding strategy is based on the revenue from the sale of players. The club’s budget for 2020 is based on revenue from player transfers during the summer transfer period. Today, it is more than likely that the income from summer transfers will be close to zero.
The biggest part of the club’s personal expenses are the wages of professional players. Being aware of the growing constraints and increasing uncertainty in the current situation, the club sent an email message to players with professional contracts, proposing amendments, requiring each individual to temporarily reduce their basic salaries for the duration of this emergency.
In the current situation, players with professional contracts could show solidarity, especially to the people who were involved in their training, who provided them with service and conditions.
Players who have been dismissed will not have existential problems due to their past earnings. In most cases their income is 4 to 10 times higher than the current contribution ceiling set by the Government of the Slovak Republic. Today, it is clear that events evolve so that their current earnings are well above the future opportunities of the club.
A legal analysis of the legislation in force has shown that the status of a company in liquidation in nothing and nowhere limits the exercise of its current business, including continuation of national and international competitions.
The club wants to take care, as far as possible, of the staff and players who have the lowest earnings. Under pressure, it is very difficult to meet the set goals, not only on the football field, but also in everyday life. The liquidation process can alleviate the variety of pressures under which we will have to work in the near future.
We all believe that football will soon be a full part of our everyday life.
