What went wrong at basketball club Donar? A dive into the accounting should clarify what has happened organizationally and financially over the past three years.
“The facts that suddenly emerged in March turned our world upside down,” said chairman Jans Stokroos in a message to the fans on the Donar site. In circles of sponsors and business contacts there is talk of a financial shortfall of at least 6 to 8 tons. This year, one alarm bell after another rang at the office and at the board when unexpected and disappointing high invoices fell on the doormat. There is not enough money to pay all the bills.
The board of the Groningen basketball pride wants to untangle the tangle of incoming and outgoing funds. Creditors want to see money and rely on agreements with the now departed treasurer Ronald Arkema. When auditing the accounts, financial experts go back three years. In recent months, the board has fallen from one surprise to another when seeing bills. Income and expenditure were not easy to identify. A number of creditors have already made a payment arrangement with the club.
‘I don’t have time for this’
“We are currently working with all our might to get all information, which was largely unknown, on the table,” says Stokroos on the Donar site. The board has an investigation carried out and does not comment on the amount of the debts. An extensive interview with Newspaper of the North Stokroos dismisses. “Sir, I have a very busy job. I don’t have time for this.”
The resigned treasurer Arkema does not want to comment on the financial disorder. “My departure has nothing to do with the situation at the club. I left purely for health reasons. I will not comment on Donar’s financial problems. The club is busy with research.”
That research is confirmed by Stokroos. It is clear that an accumulation of arrears exceeds the financial strength and resilience of the club. With an annual budget of around 2.2 million euros, the club needs outside lenders to avoid bankruptcy. Important parties that are still owed money include ‘landlord’ Martiniplaza. But also Macron, which supplies clothing to the fan shop.
In addition to the bills, repaying corona funds (NOW-TVL scheme) is a major task. Donar received financial support from the government during corona time to be able to continue operating. Now that it appears that fewer season ticket holders and sponsors have claimed their money back, the setback is not too bad and the club has to return part of the money to the government coffers.
Bottom stone must come up
The question is: what next? Donar knocks on the door of the municipality of Groningen for a cheap loan or a guarantee. To be able to finish the season, a number of sponsors pulled their wallets. She and the club’s possible new saviors want to get to the bottom of things. How high is the debt burden? Are there still corpses in the closet and how did the club end up in the financial quagmire? And where was the Supervisory Board?
Hollyhock lifts a corner of the veil for the fans. “It is wise to do more internally checks and balances to introduce.” Treasurer Arkema enjoyed the confidence of the board for many years and had a lot of freedom. Last season, Arkema left its mark on the club’s policy. He intensively supervised the inexperienced technical director Drago Pasalic.
Start with a clean slate
According to Stokroos, Arkema was not suspended or put aside, but he packed up for personal reasons. If it is up to the board, the new treasurer will be watched more emphatically. ,,Better six eyes than four”, says the chairman, who mainly looks ahead.
A recovery plan is being worked on with the Supervisory Board, he emphasizes. The extent to which the positions of Supervisory Board chairman Johann Freese and Stokroos are tenable depends on the confidence they still enjoy with sponsors. Joost van Keulen, former alderman of the municipality of Groningen, wants to take over from Freese. But Van Keulen will only do that if he can start with a clean slate.
‘Never waste a good crisis’
Quick financial help is desirable, according to Stokroos’ heartfelt cry to lenders. “In the short term, liquidity is our biggest challenge, because our employees’ salaries and invoices have to be paid.” ,,Never waste a good crisis”, the chairman quotes British Statesman Winston Churchill. It is doubtful whether the supporters who pay hundreds of euros for a season ticket feel the same way.
Donar’s loyal supporters hope and expect that the business community and large institutions in Groningen are prepared to save Donar. In doing so, lenders often make the condition that those who bear major responsibility for the financial disorder and lack of control leave the field.
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