David Sullivan has rejoined the Daily Sport as ‘honorary publisher’ following his and Gold Group International’s decision to loan Sport Media Group £1,680,000 to help restructure the business and agree a new banking facility.
Sport Media Group purchased the newspaper and its sister paper the Sunday Sport in September 2007, and it is now implementing significant cost reduction plans across all areas of its business after revealing that operating profit had fallen 82% to £637,000 for the six months up to 31st January 2009. This was attributed to a price war with other tabloids, followed by a slowdown in advertising and circulation revenues brought on by the economic slowdown.
In The Guardian, David Bailey, Sport Media Group’s Chairman, commented: “Although circulation has stabilised in recent months, advertising remains sluggish, and while management has been working on cost savings, losses have continued, albeit at reduced levels.”
Andrew Fickling, the company’s Chief Executive, added that the funding deal with Sullivan and GGI and the restructuring of its banking arrangement had secured the financial position of the group. He said: “We are grateful for the assistance that has been provided by all parties in delivering a refinancing structure that incorporates the interests of all stakeholders, and look forward to the future with renewed confidence.”