Debt is not a bad thing in itself, they just have to be able to service that debt. No doubt they have some form of overdraft facility in place just in case, they’d be daft not too.
Their requirements at present are to raise £600k a year for their monthly operating costs, not a big amount when it comes to sponsorship in real terms this could be easily raised from a group of sponsors. Return on sponsorship is really an un-quantifiable thing as there is no sure fire way for a corporation to know how much is taken in from a particular sponsorship deal such as this. However paying £100k to get the corporations name up in lights to a prospective audience of anything up to 100,000 persons at a time (RIAT) would be a drop in the ocean for most advertising campaigns.
The downside is that before those sponsors will dip into their advertising budgets, they need some concrete evidence that their money is just not going into a dark bottomless hole and that they will achieve some form of return. This is what is missing at the moment, sponsors see a constant demand for money and very little coming out of the other end.
TVOC are using the credit crunch as an excuse for poor management of this project.
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