Frölunda saved from bankruptcy

For a couple of years ago the Swedish elite club Frölunda HC was a success both on and off ice. But over the three last years Frölunda has lost 65 000 000 SEK (around € 6 700 000). The losses gave the club a liquidity crisis and the club would probably been bankrupt in December if nothing was done.

The solution was a loan from GotEvent, a company owned by the city of Göteborg. GotEvent operates Frölunda's home arena Scandinavium and as Frölunda is the largest and most important customer in the arena it was a a natural decision for GotEvent to lend the 20 000 000 SEK to Frölunda.

"Frölunda is Scandinavium's most important customer both in revenue and visitor numbers. If Frölunda would go bankrupt the arena would lose around half of it's visitors and a third of it's revenue. That wouldn't be good for Göterborg, the people of Göteborg or GotEvent" the CEO of GotEvent Thomas Torkelsson said when commenting on the deal.

The deal was announced after Frölunda lost at home to Färjestad on Monday. "I signed the documents during the second intermission. We are very grateful for this solution", said Frölunda's chairman Mats Grauers.

 

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