Strategy & Operations » Leadership & Management » Sugar’s new financial laxative

Sugar's new financial laxative

With the FTSE in imminent danger of becoming the Footie index as more and more soccer clubs flood on to the market, it might be useful for FDs to gain an insight into the thinking of soccer bosses.

Lesson number one comes from Tottenham Hotspur boss Alan Sugar, better known to business people as former high-flying Amstrad founder and chairman.

He has invented a new and powerful piece of financial jargon: the “prune juice effect”. This is the phenomenon, not unknown to most businesses, of extra money coming in, but immediately flowing straight out again. “It’s like prune juice, it just doesn’t touch the sides,” Sugar explained recently. The opposite of going straight to the bottom line.

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